Understand Key Influences on the Feed Industry Glenn Eben, Vice President of Feed
As we assess the feed industry and ingredient supplies, it’s essential to consider the businesses that directly impact feed manufacturing in Minnesota— especially within the CFS footprint. Ethanol Industry Minnesota has long been a national leader in ethanol policy and production. It was the first state to mandate ethanol use in fuel, and today, state law requires that all gasoline sold in Minnesota contain 10% ethanol (E10). Currently, 18 ethanol plants operate within the state, producing over 1.35 billion gallons of ethanol in 2023, making Minnesota the fifth-largest ethanol producer in the U.S. Beyond fuel, ethanol plants generate essential feed ingredients, including high-protein animal feed and distillers’ corn oil. These byproducts play a crucial role in livestock nutrition, impacting the availability and pricing of key feed components. Soybean Crush Industry The soybean processing sector is set for significant expansion in the coming years, opening more domestic opportunities for soybean consumption. Since whole soybeans are rarely used in feed, they are crushed to produce soybean meal (a primary livestock feed ingredient) and soybean oil (used in food and biofuels). To date, 23 new crush plant projects have been announced across the U.S., with 13 new plants and 10 plant expansions. These projects could add 750 million bushels per year to U.S. crush capacity. However, growth is largely tied to renewable diesel demand, as soybean oil is a key input for biofuel production. Some crush plant expansions are even being developed alongside renewable diesel plants in joint ventures.
While these announcements signal long-term potential, actual implementation depends on factors such as state and federal policies, permitting, and financing. Until these projects break ground, market uncertainties will continue. Tariffs and Trade Policies Trade policies continue to impact the feed supply chain. Recent discussions on tariffs—including those affecting goods from Canada and Mexico—have raised concerns about supply chain disruptions and potential economic fallout. Unlike previous targeted tariffs, these proposed measures are broad-based, and aimed at addressing national interests such as border security. With shifting trade policies, evolving biofuel industries, and plant expansions, ingredient availability for livestock feed remains uncertain. At CFS, we are proactively working to navigate supply challenges, including shortages caused by plant idling, overproduction, and trade restrictions. Thank You for Your Support We appreciate the trust our customers place in us. Thank you for your business over the past year, and we look forward to serving you in the year ahead. Wishing you a safe and prosperous season!
Made with FlippingBook - Online magazine maker