Two ethanol plants are exploring the possibilities of linkages between ethanol and livestock production. The E3 BioFuels plant in Mead, Nebraska, and the Panda Ethanol plant in Hereford, Texas, are trying to take advantage of the synergies between ethanol and livestock production. These two plants are also testing whether cost advantages in ethanol production still exist for the Midwest or whether there may be advantages in locating ethanol production closer to end users for both ethanol and ethanol by-products, specifi cally distillers grains.