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Should the Ethanol Bubble Burst?
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[quote user="Murphy Siding"][quote user="Bucyrus"][quote user="RRKen"] <p> You folks need to learn how to read with your eyes open for a change. </p><p> Corn in. Byproduct out. Byproduct fed to animals as feed. Cheaper than whole grain corn.</p><p> What part of that don't you understand???????</p><p>[/quote]</p><p><em><u>This part:</u></em></p><p> </p><p>Given that:</p><p> </p><p>1) The byproduct is cheaper than corn.</p><p> </p><p>2) The byproduct has higher nutrition content than corn.</p><p> </p><p><strong><u>QUESTION:</u></strong></p><p> </p><p><font size="3">How many pounds of corn does it take to make one pound of byproduct, and what is the nutrition content of that quantity of corn, compared to the nutrition content of the one pound of byproduct?</font></p><p>[/quote]If the cattle producers around here are buying the byproduct to feed, instead of the corn, does that sort of answer the question?[/quote]</p><p>No. That answers the question about the economic viability of byproduct DDG as feed. I have no doubt about its economic viability. DDG is a waste product from ethanol production which itself is a subsidized industry. It makes sense that DDG would be cheap, if not free. Moreover, as RRKen has pointed out, DDG has a higher nutritional content than the corn that would have been feed to animals if it had not been diverted to ethanol production. But this is about the economics of using DDG. I want to know if there is a reduction in the corn supply used in food production as animal feed because corn is being diverted to ethanol production. There may be other uses for field corn besides animal feed, but my question pertains only to animal feed since that is where DDG is substituted for corn. This was my question: </p><p> </p><p><strong><u>QUESTION:</u></strong></p><p><font size="3"><em>How many pounds of corn does it take to make one pound of byproduct, and what is the value and nutrition content of that quantity corn, compared to the value and nutrition content of the one pound of byproduct?</em></font></p><p>If there is more nutritional value in the pound of byproduct than in the presumably greater quantity of corn that it took to make the pound of byproduct, then it would be easy to see how ethanol production would not be reducing the corn feed supply. However, this does strike me as a sort of nutritional perpetual motion machine. If this were possible, I would think corn would have been converted to DDG prior to the ethanol boom even if ethanol were not made in the process and there were no subsidy. </p>
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