A system and method is provided which includes using a liquid treatment apparatus, which is equipped with cyclonettes, for example, to subject a liquid medium processing stream in an alcohol production process to hydraulic cavitation, i.e., to shear under vacuum, at one or more locations. The liquid treatment apparatus, in one embodiment, is directed to the formation of a central axial jet and a vacuum chamber that can be sealed by the exiting jet. Cavitation is generated by directing a high velocity jet of liquid medium processing stream through a volume of vapor under a vacuum created in the chamber through which the jet travels. This can reduce the production cost of alcohol, such as ethanol, by improving alcohol yield per bushel, among other benefits. In one embodiment, the alcohol production process is a dry grind process, a modified dry grind process, or a wet mill process. In one embodiment the alcohol production process utilizes grain as a starting material.