Breaking through the 'Feed Wall'
Grains Council, Renewable Fuels Association host Export Exchange to boost DDGS exports.
Mike Wilson
Published: Oct 7, 2010
Nearly 500 producers, suppliers, importers and end-users of U.S. distillers dried grains with solubles (DDGS) and coarse grains from around the world gathered in Chicago this week to make deals on what is rapidly becoming one of America's fastest growing exported commodities.
Exports of DDGS, the livestock feed coproduct of ethanol production, has grown from nearly nothing in 2004 to around 8 million metric tons in 2010, says Tom Dorr, President of U.S. Grains Council, which cosponsors the event along with Renewable Fuels Association (RFA).
The largest markets for DDGS are Mexico, Canada and China, which imported more than 1 million tons alone in 2010. China is expected to more than double that amount of DDGS purchase in 2011.
As more ethanol is sold, producers have been concerned about the 'blend wall' – the current 10% level of ethanol that is allowed to be blended into America's fuel supply. But officials here also noted that the 'feed wall' – the market for ethanol coproducts – is equally important. Without vigorous sales of DDGS, here and abroad, the ethanol market will stumble, Dorr says.
The Export Exchange is focused on connecting international buyers of DDGS and coarse grains with the U.S. market. USGC is providing sponsorship funding for trade teams from more than 25 countries, which represent nearly 80% of the global export market for DDGS.
The event concludes tomorrow.
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