Good News for DDGS Exports

Supply and demand numbers show U.S. will remain competitive in overseas markets.

The U.S. Grains Council says the United States is more than able to continue supplying global customers with necessary feed ingredients. Citing the latest USDA World Agricultural Supply and Demand Estimates, USGC Chairman and Ohio corn producer Rick Fruth said U.S. corn ending stocks for 2008/2009 are projected 50 million bushels lower this month and ethanol use is estimated 100 million bushels higher. Fruth says this is good news for U.S. corn growers and the U.S. ethanol industry, which was stumbling as a result of the current economic situation.

Fruth says the 100 million bushel increase of corn used for fuel will result in approximately 1.7 billion pounds of distiller's dried grains with solubles for global livestock and poultry industries. The Council, which has been developing overseas markets for DDGS since 2002, reports DDGS exports increased more than 91% in 2008 from the previous year. Total DDGS exports amounted to 4.5 million tons compared to 2.3 million tons in 2007.

Given USDA's report citing increased supplies of wheat and corn available in the global marketplace, Fruth predicted DDGS exports will allow U.S. farmers to remain competitive in markets overseas. He says the distiller's grains are a way to help U.S. growers get every bit of value out of the kernel of corn, and they help reassure international buyers that a good source of feed continues to be available for our livestock producers in the United States and abroad.

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