Local Feed, Local Resilience: Why Co-Products Matter in a Volatile World

For livestock producers, reliable access to nutritious feed is essential. Animals need to be fed every day, regardless of what is happening in global commodity markets, along transportation routes, or across major agricultural regions.

That reliability has become increasingly important as farmers navigate a more volatile operating environment. Drought, extreme heat, flooding, geopolitical conflict, transportation disruptions, and changing trade policies can all affect the availability and cost of feed ingredients. When crops underperform in one region or shipments are delayed from another, the effects can quickly reach livestock operations hundreds or even thousands of miles away.

Local feed production provides an important layer of stability.

Ethanol production creates valuable agricultural co-products, including wet and dried distillers grains and corn oil. These are not simply leftover materials. They are useful products that allow more of the corn kernel to be put to work.

During ethanol production, the starch in corn is converted into renewable fuel. Much of the remaining protein, fiber, fat, and other nutrients is concentrated into distillers grains, creating a nutritious feed ingredient commonly used by dairy and beef producers. 

Wet distillers grains are especially valuable to livestock operations located near ethanol facilities. Because they contain moisture and have a more limited storage life than dried feed products, they are most efficiently distributed within the surrounding region. Proximity can help reduce transportation distances, improve access to a consistent supply, and limit some of the risks associated with relying entirely on feed shipped over long distances.

At Calgren, this connection between renewable fuel production and local agriculture is part of how we operate.

Our ethanol facility in Pixley, California, produces approximately 350,000 tons of wet distillers grains each year. This feed supports dairy operations throughout the Central Valley, one of the most productive agricultural regions in the country.

For nearby dairy farms, locally available distillers grains can provide a dependable source of nutrition while helping diversify feed options. When drought, market volatility, or transportation challenges disrupt other supplies, having a consistent feed ingredient produced within the local region can help farms remain productive and better prepared to absorb those disruptions.

The benefits also extend beyond individual farms. Local feed production supports the broader agricultural economy by keeping more resources and economic activity within the region. Corn is used to produce renewable fuel, valuable livestock feed, and other co-products, creating an integrated system that connects energy production with food and agriculture locally.

This type of regional infrastructure matters in a changing world. Agricultural resilience is not only about responding to disruptions after they occur. It is also about building dependable systems before they are needed.

By producing renewable fuel and nutrient-rich livestock feed in the same process, Calgren helps support both sustainable energy and reliable agricultural needs. Our co-products provide value to nearby dairies, strengthen regional supply chains, and contribute to a more resilient Central Valley food system.

As global markets continue to change, locally produced resources will play an increasingly important role. For Calgren and the agricultural communities around us, local feed is more than a co-product. It is part of the infrastructure that keeps farms operating, supports regional food production, and helps build a more resilient future.