Sales of DDGS to Chinese Markets Explodes

Sales of DDGS to Chinese Markets Explodes

Huge increase in imports triggered by U.S. Grains Council efforts.

Microsoft Word - KS Edited Final Version, Risher, 4-28-09

Even as mainstream media outlets in the U.S. seem slow to pick up on the importance of Dried Distillers Grains with Solubles in the animal feeding market, the export demand for the ethanol byproduct continues to grow.

The U.S. Grains Council estimates that export of DDGS to China will hit record levels this year. Through June, 15,000 to 20,000 tons had already been shipped, well ahead of the entire year of 2008, when 8,000 metric tons were imported to China. But that is a mere drop in the bucket to what is coming next.

The Council's Beijing office estimates 135,000 tons have been sold to China for August and September shipments.

"This huge jump in imports would not be possible without the U.S. Grains Council members and programs," said Cary Sifferath, USGC director in China. "Sponsoring DDGS workshops in China and bringing teams to the United States to showcase the high quality of U.S. DDGS are essential for building a market for U.S. DDGS in China."

To further develop and strengthen international relationships between Chinese DDGS buyers and U.S. suppliers, the Council is sponsoring a team of Chinese DDGS buyers who are on their second week visiting the United States.

Traveling with the 15-member team to Minnesota, Iowa and Illinois are Sifferath and Sam Niu, USGC assistant director in China. "Major Chinese DDGS buyers and potential new buyers are meeting face-to-face with U.S. suppliers, visiting ethanol plants and container transloading facilities while continuing to build relationships and new business," said Sifferath.

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