Distillery by-products, livestock feed and bio-energy use: report

5. Supply and demand of distillery by-products

Introduction

41. In previous sections of the report estimates of distillery by-product production and use in livestock feed and bio-energy have been prepared. This section now brings these figures together to generate estimates of overall distillery by-product supply and demand.

42. Distillery by-products have traditionally been used as livestock feed. In recent years there have been concerns about the availability of co-products to Scottish farmers, due to increase in prices, export to England and use of co-products for renewables generation by distilleries. This concern has been heightened by shortfalls in traditional feed production due to adverse weather; notably the drought of 2018. In order to determine the availability supply and demand of distillery by-product the following data has been used as follows:

(i) The level of distillery by-product produced:

See details in Section 2 and Appendix 2.

(ii) The amount of distilling by-product used in livestock feed:

See details in Section 3.

(iii) The amount of distilling by-product used in bio-energy production^[11]:

See Section 4.

(iv) The amount of by-product disposed as waste:

No information available, this figure has been determined as the residual of other uses.

(v) Local use of distillery by-products in animal feeds:

No information available.

Distillery by-product use by sector

43. SRUC have combined available data sources to produce estimates of the balance in distillery by-product use between different sectors as detailed in Figure 2. These estimates are indicative only, however, they illustrate that there has been a large shift in end use for distillery by-products. In 2012, animal feed was the dominant use at 68% of utilisation and bio energy was estimated at 30%. Move forward seven years to 2019 and it is estimated that animal feed will constitute 32% and bio-energy a total of 63% of distillery by-product use.

Figure 2. Estimated use of Scotch whisky distillery by-product by sector across the UK*

Source: SRUC, * UK usage but mainly used in Scotland except some feed exports
to England detailed in Table 7a.

Table 12 - Estimated use of Scotch whisky distillery by-product

by sector across the UK*

Source: SRUC, * UK usage but mainly used in Scotland except some feed exports
to England detailed in Table 7a.

Summary of distillery by-product supply and demand

44. SRUC have combined all of its estimates of distillery by-product output (whisky) and use (livestock feed and bio-energy) in Figure 3 comparing estimates from the previous study in 2012 with those estimated for 2019. These figures also includes estimates of bio-ethanol by-product output from plants in England but not use of this by-product as no figures are available.

45. Figure 3 reveals that since the previous estimate in 2012, the supply of whisky by-products in Scotland is estimated to have fallen by 49,000t DM while the supply of bio-ethanol by-products in England to have risen by 135,000t. At the same time use of Scotch whisky by-products in animal feed in the UK is estimated to have fallen by 187,000t DM of which; 58,000t DM less in Scotland and 129,000t DM less in England. At the same time use of Scotch whisky distillery by-products in bio-energy is estimated to have risen by 133,000t DM of which; 87,000t DM more in AD and 46,000t DM more in CHP.

Figure 3. Production and use of distillery by-products in the UK and Scotland

Source: SRUC and trade sources