MGPI » Topics » Distillery Co-Products.

These excerpts taken from the MGPI 10-K filed Sep 12, 2008.
Distillery Co-Products.  The bulk of fiscal 2008 sales of alcohol co-products consisted of distillers feed.  Distillers feeds are the residue of corn, milo and wheat from alcohol processing operations.  The residue is dried and sold primarily to processors of animal feeds as a high protein additive.  We compete with other distillers of alcohol as well as a number of other producers of animal food additives in the sale of distillers feed.  During fiscal 2008, prices for distillers feed were depressed relative to corn prices as a result of increased fuel alcohol capacity combined with decreased demand in the European Union due to the E.U.’s non-approval of several varieties of genetically modified corn commonly grown in the U.S.

 

The balance of alcohol co-products consists primarily of carbon dioxide.  During the production of alcohol, we trap carbon dioxide gas that is emitted in the fermentation process.  The gas is purchased and liquefied on site by three principal customers, one at the Atchison Plant and two at the Pekin Plant, who own and operate the carbon dioxide processing and storage equipment under long-term contracts with us.  The liquefied gas is resold by these processors to a variety of industrial customers and producers of carbonated beverages.

 

Distillery Co-Products.  The bulk of fiscal 2008
sales of alcohol co-products consisted of distillers feed.  Distillers feeds are the residue of corn,
milo and wheat from alcohol processing operations.  The residue is dried and sold primarily to
processors of animal feeds as a high protein additive.  We compete with other distillers of alcohol
as well as a number of other producers of animal food additives in the sale of
distillers feed.  During fiscal 2008,
prices for distillers feed were depressed relative to corn prices as a result
of increased fuel alcohol capacity combined with decreased demand in the
European Union due to the E.U.’s non-approval of several varieties of
genetically modified corn commonly grown in the U.S.



 



The
balance of alcohol co-products consists primarily of carbon dioxide.  During the production of alcohol, we trap
carbon dioxide gas that is emitted in the fermentation process.  The gas is purchased and liquefied on site by
three principal customers, one at the Atchison Plant and two at the Pekin
Plant, who own and operate the carbon dioxide processing and storage equipment
under long-term contracts with us.  The
liquefied gas is resold by these processors to a variety of industrial
customers and producers of carbonated beverages.



 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Sep 12, 2008
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