Global Ethanol Mandates: Opportunities for U.S. Exports of Ethanol and DDGS

Favorable market conditions and government policies led to a large global expansion in ethanol production from 2001-10. By 2016, an additional 26 countries had adopted blending mandates, according to Global Ethanol Mandates: Opportunities for U.S. Exports of Ethanol and DDGS.

The United States is the worlds largest producer and exporter of ethanol. It also supplies 85 percent of the worlds distillers dried grains with solubles (DDGS), a coproduct of grain-based ethanol production that is used in animal feed.

At this time, large amounts of agricultural feedstocks are being used for ethanol, and this could increase if ethanol production continues to grow in countries with newer mandates. Like the United States, China and India have been trying to find economically feasible ways to produce ethanol from feedstocks that do not compete with food production for the use of land.

Currently, the United States has more than 50 export destinations for DDGS and more than 70 for ethanol, thus opportunities might be found. Large-scale production of cellulosic-based ethanol could allow the United States to meet future global export opportunities for corn, corn-based products, and ethanol.

Photo: AgView.net

Story source: USDA-ERS release

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