Very true that cattle only tolerate a limited abmount of DDG, but 30% of their total feed is very reasonable.

The other big change coming is that companies will start extracting more of the corn oil from the DDG product (already happening at a few plants).  This is positive in several ways.  From what I understand, less energy is than required to dry the DDG, we pick up another high-value product stream (corn oil -- think biodiesel) and the resulting DDG product can be used for the pork and poultry industries, which so far have been unable to use much DDG at all.

Although there will be short term market issues due to the extremely rapid growth of the ethanol business, we will run out of land to grow corn long, long before we run out of a way to utilize the by-product.

dgrimm
I saw on a recent ag report that nationwide, cattle are not finishing out as well this past year.  Do you have any theories about this?  They mentioned drought conditions being one, and many people are jumping to the conclusion that its the DDG being fed.  What are your thoughts on this?
That is a very intresting side note.  Getting cattle to "finish well" means getting internal fat (marbling, what makes a steak juicy), without external fat, the stuff around the edges.

There is raging debate in the industry about how much feeding DDG is responsible for what has been a significant decline in cattle grading over the last couple of years.

From our personal experience, I think DDG is a significant culprit, and we are investigating how to address the issue.

So DDG makes for a leaner healthier steer???

Very interesting.

It sounds as if this nation's steers are all on the Adkin's diet.  Now there's a big market--using DDGs for a human diet product.  
Ideally, the drying step would be eliminated completely.  This can be done if the fermentation is integrated with or near to a cattle-feeding operation.