The growth in the domestic biofuels industry could be a blessing in disguise for livestock production in the UK.

Much has been made of rising animal feed costs, partly driven by demand from the emerging industry, but co-products from that same industry could be used as animal feed.

Whether or not these benefits are actually seen depends on one key factor - the price charged for the co-products.

A study has just been completed by ADAS, funded by the HGCA, BPEX and EBLEX looking at both biodiesel and bioethanol.

Report author, Dr Bruce Cottrill said: "It is estimated by 2010 there will be an additional 150,000 tonnes of rape seed meal (RSM) and 10,000 tonnes of glycerol from UK crushed oil seed rape.

"Predicting wheat distillers dried grains with solubles (DDGS) is more difficult but, based on current planned production, some 940,000 tonnes may be available for use as animal feed.

"Based on current estimates of production, it seems likely the livestock industry could absorb all the additional RSM and glycerol produced and they would replace imported feed."

Dr Cottrill said there had been little work on the amount of DDGS derived from wheat which could be included in feed and more work was needed on this.

BPEX Chief Executive Mick, Sloyan said: "The amount will fluctuate as the biofuel market matures but this is undoubtedly an opportunity for the British pig industry and manufacturers will be including significant amounts of these in diets."

EBLEX Chief Exec Richard Ali said: "What shines through in this report are the linkages between energy and agricultural policy and I have no doubt that the livestock sector will become increasingly active in analysing the effects of proposed changes in those regimes."

Alastair Dickie of HGCA Crop Marketing said: "The UK is in deficit in protein for its animal feed and an expanding source of rapemeal and DDG will help the Balance of Payments and reduce the livestock industry's import costs."

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