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Exports of DDGS Is Becoming More Important

Most everyone today is aware of ethanol as a fuel, but they may not know much about distillers dried grains, or DDGS. Renewable Fuels Association President and CEO Bob Dinneen notes it's an important co-product of the ethanol production process.

"We just use the starch in the production of ethanol, but what is left behind is a very high-value, high protein feed that is used satisfy livestock and poultry markets across the country," Dinneen said. "So far this year we have produced more than 30 million metric tons of DDG, but unfortunately just as the ethanol market is hitting a blend wall, DDG appears to be hitting a feed wall. We've saturated the U.S. largely with DDGS."

Dinneen says that makes the export of U.S. DDGS vital, and fortunately there's a lot of international interest.

"The DDG export market is strong and growing and is really keeping the industry's economics afloat in a difficult and challenging time right now," Dinneen said. "More than four million metric tons of DDGS have been exported in just the first six months of 2010. That's a record and we need to keep up those exports in order to keep ethanol plant profitability strong."

That's why RFA is working with the U.S. Grains Council to host an event that will not only educate more than 150 international buyers of U.S. DDGS, but connect them with more than 300 U.S. producers and agribusinesses.

"They can build those relationships and so they can understand how DDGS can be used in their feed rations more appropriately and effectively," Dinneen said. "The Renewable Fuels Association and the U.S. Grains Council holding an event in Chicago Oct. 6-8, the Export Exchange 2010, is going to be a critically important event for the industry."

Export Exchange 2010 participants are expected to represent nearly 80% of the global export market for DDGS and coarse grains. The agenda features international leaders from across the spectrum of agricultural world trade and will address critical issues facing U.S. exports.

For information and to register visit www.grains.org.