China Becoming a Major Customer for Distillers Dried Grains
China is not only buying some U.S. corn, but is becoming a major export market for U.S. distillers dried grains.
Compiled by staff
Published: Sep 10, 2010
The production of dried distillers grains has increased as the production of ethanol has ramped up. Five years ago about about 13.5 million tons of DDGS were produced, this year that number should exceed 37 million tons. While much of that is being consumed by livestock near production facilities, more and more if finding its way to the export market.
Gerry Bange, USDA Outlook Board Chairman, says up until now Canada and Mexico have been the biggest buyers of DDGS but China is on track to be one of the if not the biggest customers of DDGS.
"They've had some production issues with regard to last year's crop," Bange said. "So that would give some evidence that given the growing livestock population and consumption in China that they in fact, do need more in the way of feed grains and DDGS to feed those animals."
Bange says that the U.S. has sold China some corn in recent months, but the fact that sometimes is lost is they are also importing DDGS.
"We have exported quite a bit of distillers dried grains to China," Bange said. "So the more ethanol we produce the more DDGS we produce and it's been very helpful to find that market, and a somewhat growing market I might add, in China for that commoditiy."
Permalink: Click here
Tagged: ethanol, usda
|