Does the DDG Flap Mean Trouble for Iowa Ethanol?

Iowa ethanol producers are monitoring the trade dispute between the U.S. and China over dried distillers grains (DDGs) and wondering what it means for them in 2011. Last week, China announced an investigation into what it says may be illegal dumping of DDGs by the United States. DDGs are the dried corn kernel shells left over during ethanol production. They typically are sold for livestock feed at prices less than regular corn.  Sales of DDGs contribute up to 30% of the revenue generated by a typical ethanol plant. Iowa leads the nation in the number of ethanol plants with 40 and accounts for about one-third of U.S. ethanol production.  Read more...