When one makes biofuels like ethanol, biodiesel, SAF, or renewable diesel, one must meet minimum quality standards in order to sell these primary products. It is important to remember that when producing the feed-related co-products must also meet specs to gain entry into most markets. While producers are well aware of the specs for biofuel, the specs on the co-products can sometimes get overlooked. The “quality” of the co-products will likely influence the price it will command in the marketplace. For feed co-products, we are not just comparing DDG/S from two different ethanol plants as an example. We are comparing our DDG/S to all other feed ingredients, such as soybean meal, corn, sunflower meal, etc. Even between two sources of DDG/S with the same crude protein and fat values, there will likely be dramatic differences in value based on “quality.”
In order to determine these often subtle differences and maximize profits on the co-products, it is often helpful to hire an outside expert with a good knowledge of chemistry and nutrient analysis. It is important to remember, however, that quality goes much deeper than a simple nutrient profile. An outside consultant must be an expert at making determinations of factors affecting quality and must be able to translate the results into usable data. The expert should be an expert at statistical analysis and interpretation. The bottom line? Without a clear understanding of your co-product quality along with good supporting data, you have no real idea of value and are at the mercy of the marketplace.
For over 25 years, Lee Enterprises Consulting has been assisting companies and investors with bioenergy, biofuels, biomaterials and chemicals, biotechnologies, and feedstock matters. With over 150 consultants, we have the diverse expertise and geographical reach to assist in virtually any bioeconomy project worldwide. These seasoned professionals average over 30 years of industry experience. Our ability to assemble these professionals into multidisciplinary teams allows us to fully integrate the technical, scientific, and regulatory aspects of a project, and combine them with years of hands-on experience. Take a look at our experts and the services we provide. You will note that most of our experts are also available for ancillary engagements and advice, for specialty engagements like serving as expert witnesses in litigation matters. Call us at 1+ (501) 833-8511 or email us for more information.
