Grain source for bio fuel

[ianben]

Here in UK we are in a similar position to you I think lots of talk and plans for ethanol and biodiesel plants.

The fact that we both have the real thing ie crude oil I think makes a big difference to government attitude towards alternative fuels and therefore the ecoonomics of where production takes place.

However biproduct prices, ****meal and grains, do have an impact. I am lead to believe the biodiesel plants being built in UK will export fuel to Sweden and Germany( no oil and real green fuel incentives)but leave the **** meal here for our livestock to consume.

Could this be a reason to build plant in Canada rather than US?

Sweden is promoting triticale as ethanol base I belive due to its lower cost of production.

I think as farmers we should resist too much specialisation for these new plants and grow dual purpose varieties which can fill both food and fuel markets.

I think more buyers will give us better prices than one guy with a bonus on a specific one use crop.

Here we are being told these companies will not invest if they cannot ensure supply and we will miss out on the plants being built in UK.
We should commit some grain at the prices they are offering.

We have been told we should manage our risk useing to futures markets.

That is what they are for.

Is that not also true for someone building an ethanol plant?

More buyers higher prices is that why I need to sign up?

[kamichel]

Uk not neccessarily similar in that most of your grain production I am only guessing goes into local human consumption and local animal feed. So not much left over for other uses as biofuels. Here in Canada we know that being too reliant on export markets for our grains has left us with very low commodity prices at times. So I still remain bullish and have taken some of the contracting opportunities in the ethanol industry. All my cerials will be AC andrew wheat. It can be sold to ethanol plants, feed mills, any feed market, limitted human consumption, and growing malt demand. I would not say that all my eggs are in one basket here. Advantages to Andrew wheat is higher yield, less chance of downgrade in the feed markets, good standability, strong straw, current and new crop contract prices increasing feed grain demand and open market access as well as CWB contracts. Dissadvantages are later maturing, easier to sprout, susseptible to rusts, must seed treat.

[kamichel]

Triticale is a no no, no ethanol plant will want it.

[charliep]

Not so sure about your comment on triticale. One researcher has been looking at it as an alternative. Would be nice to have a use for an alternative crop that grows on brown soil zones. The fall seeded varieties may offer some advantages as well.

[craig]

The question mark on triticale is having the right variety for large scale production. Tritically breeding has not necessarily had an emphasis on grain production in past. So far winter trits in my experience in the parkland actually need to be seeded earlier than winter wheat. Need the rye genes, winter hardiness, early growth habit to be expressed more. Trit does show good drought tolerance. Interestingly a proposed plant in Manitoba is promoting a feedstock of 70% barley and 30% peas. good comments re soft wheat. Just so producers know. Those traits and yields can easily be transferred into winter types and are being done as we speak. Problem is getting past KVD.

[kamichel]

I got the no triticale from the Terra Grain website, maybe my mistake. They do not want triticale. I should not have said that no one will take it. One thing to consider is that the ethanol manufactures must keep keep consistency on what is coming in as the feedstock in order to keep the DDG content consistent in order to market the DDG.

[charliep]

Curious enough, we measure yield in bushels/acre. The new world may be energy/acre. I also remember Lee and BennyHin discussion about whether to measure cost/acre or cost/bu. Maybe the new measure will be cost/unit of energy produced.