The rapid expansion of the ethanol industry in Indiana has saturated the local market for the principal co-product, distillers grains with solubles (DDGS). In the near term, Indiana’s livestock industry can be expected to consume up to 895,000 tons of DDGS per year. But given production of 2.7 million tons, Indiana’s ethanol producers will rely on railroads and barges to ship excess production to out-of-state destinations. Livestock producers will have a ready access to DDGS across the state.