Christianson PLLP’s Connie Lindstrom, Senior Biofuels Analyst and Jamey Cline, Business Development Director, presented at the 21st annual Distillers Grains Symposium in Indianapolis, IN on May 17, 2017.
This Symposium provides the latest information on issues in the industry such as distillers grains marketing, animal nutrition, processing technologies, and governmental regulations.
At this event, Connie and Jamey provided valuable information to attendees regarding the latest data and trends from the Christianson Biofuels Benchmarking system as well as current concerns regarding the Food Safety Modernization Act (FSMA).
During Connie’s presentation, her focus was on creating awareness of the ethanol-to-coproduct profitability ratio, and called on producers to focus their efforts on ways to retain and maximize the value of their remaining feed products. As ethanol and distillers corn oil yields have improved over the past several years (as shown in ethanol benchmarking data) average yields of distillers grain products have fallen.
This reduction in distillers grain yield is an expected outcome of production enhancements, but it reduces the contribution of co-product revenue to the bottom line, and weights the burden of profitability more heavily on ethanol, which in turn leaves producers more vulnerable to fluctuations in ethanol pricing.
During his presentation, Jamey concentrated on the impact of FSMA compliance initiatives while outlining three general phases of compliance implementation to help producers identify their current place in the process. He also highlighted five important first steps in the FSMA compliance process for any facility, such as the establishment of a food safety committee and the creation of auditable operating procedures to support implementation of Current Good Manufacturing Processes (cGMP).