The increased role of grain sorghum in the ethanol production process in the U.S. is a promising development for those who have spent a lifetime accepting the uncertainties of the market. But this is not a time to be complacent. I often recall the words of Will Rogers, "Even if you're on the right track, you'll get run over if you just sit there."
While the biofuels industry is continually evolving, it is imperative to understand not only the needs of ethanol producers, but their perceptions about sorghum. To that end, the United Sorghum Checkoff Program commissioned a survey by Agri-Energy Solutions Inc. on the use of sorghum in the ethanol industry. Unfortunately, surveys and research are often manipulated by those seeking to enhance their reputation. We viewed this research as a learning tool: how can we better serve our customers? Positive feedback tells us we're heading in the right direction. Misperceptions tell us there is a need to raise awareness of the benefits of sorghum as a feedstock in the ethanol industry.
In 2009, more than one-quarter of total domestic grain sorghum production was used in the U.S. grain-to-ethanol market. The increased utilization of sorghum by ethanol plants in the past two years is a significant step towards the USCP's strategic goal of increasing sorghum use in the ethanol industry by 50 percent by 2011. Even slight increases in demand could mean half of the Kansas sorghum crop could be used to produce ethanol in 2010.
The facts are clear: grain sorghum offers a lower cost alternative to higher priced corn for manufacturing ethanol, with similar output rates of production. But grain sorghum needs to be recognized for benefits other than cost. And as they say, the devil is in the details. In comparison to many other crops, sorghum has very little consumer awareness beyond the friendly confines of sorghum country.
Declining sorghum acres and production have led to decreased private investment in sorghum. These declines brought about not only a "technology gap" between sorghum and other crops such as corn and cotton, but a potential "perception gap." The Agri-Energy survey provides the information that will enable USCP to close that gap.
Some of the concerns raised by ethanol producers provide an avenue to speak to those within the sorghum industry about the opportunities as well as the perceived weaknesses for sorghum. The survey found that some respondents are concerned that there is not a consistent supply of sorghum, or that grain sorghum production in the U.S. does not meet with its demand potential. This underscores the need for a comprehensive education program for grain sorghum producers who sell to ethanol markets and for ethanol marketers who purchase grain sorghum.
We're working to illuminate the value of using grain sorghum in the ethanol production process. Grain-based ethanol plants in areas where grain sorghum can be grown will benefit because of its price differential and availability. Ethanol conversion kits created by the USCP are being distributed to plants across the U.S. These interactive kits provide a detailed look at the costs and technical aspects of using grain sorghum in the ethanol production process. This is the first time in the industry that a "calculator" has been created to provide bottom line numbers for sorghum and ethanol.
In the new year, we are looking to not only expand upon opportunities within the biofuels arena, but also develop greater consumer awareness of sorghum.
Bill Greving is chairman of the United Sorghum Checkoff Program. Reach him at
wand@ruraltel.net.