Summary
The Australian Government is committed to the establishment of a grain-based ethanol production industry. Any increased competition for grain could adversely affect the cattle feedlot industry. While the sector could benefit from a plentiful supply of distillers grain by-product, if it became available, the most energetically efficient and environmentally friendly ethanol plants use the distillers grains as a source of fuel within the plant, and none becomes available for sale to the livestock industries.
The additional grain demands for E10 ethanol production could be met from national grain production in years of above average and average yields, but not in years of low yields. Within a region with a major feedlot capacity, one 160ML ethanol plant would lead to grain being imported into the region in some years. If distillers grains were available for inclusion in feedlot diets, a 160 ML plant would provide enough sorghum distillers grain to support a ration contribution of 25% of the dry matter for 80,000 feedlot cattle every day of the year within the zone of economic transport of the distillers grain.