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Agricultural News


China To Be Strong U.S. DDG's Customer

Wed, 07 Apr 2010 17:46:44 CDT

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. 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.


Dorr said - there is significant potential in China. Demand for high-quality protein is growing aggressively. According to Dorr, - U.S. sales of DDGS to China may climb to as much as 2 million tons this year from about 600-thousand tons last year. The target is in line with the goal set by President Barack Obama of doubling U.S. exports over the next five years.


The U.S. Grains Council is focusing its export expansion efforts on China and other emerging Asian markets like Indonesia because demand from Japan has matured.

 

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