China to Be Strong U.S. DDGS Customer

Speaking in Tokyo, U.S. Grains Council President Thomas Dorr said, over the next five years, total U.S. exports of dried distillers' grains with solubles may jump to as much as 11 million metric tons a year, from 5 million tons now. DDGS is a by-product from ethanol distillation and the growth is based on expected demand growth in China where feed mills are seeking cheaper alternatives to locally grown corn as consumption of meat, milk and eggs booms in the world's fastest-growing major economy.

"There is significant potential in China," Dorr said. "Demand for high-quality protein is growing aggressively, and U.S. sales of DDGS to China may climb to as much as 2 million tons this year from about 600,000 tons last year."