Agricultural News
DDGS Gaining in Southeast Asia
Thu, 03 Oct 2013 14:44:07 CDT
The strength of U.S. exports of distiller's dried grains with solubles has been bright spot in a tough year for U.S. feed grains, with particularly strong export growth in Southeast Asia contributing substantially to that growth. Through the first half of calendar year 2013, total U.S. DDGS exports rose six percent. At the same time, growth rose nine percent in Southeast Asia, with major gains in Thailand (53 percent) and Indonesia (42 percent) more than offsetting declines in Malaysia and the Philippines. Overall, U.S. exports to the region rose by 605,000 metric tons.
"In Southeast Asia, DDGS are a beachhead export commodity for the United States," said Adel Yusupov, U.S. Grains Council regional director in Southeast Asia. "While India and South America are our major regional competitors in coarse grains, DDGS is a key product where the United States commands a significant advantage due to its unique mix of quality feed protein and energy benefits for poultry and swine. Southeast Asia's commercial feed production, currently at 60 million metric tons, is about one-third of China's and growing at 5 to 8 percent per year, driven by consumers' preference for higher value calories. We are working to tap into these markets and build demand for DDGS across all animal sectors."
U.S. DDGS shipments were threatened last year by the discovery of insect pests in a container shipment to Vietnam. Yusupov and the Council, of which the National Corn Growers Association is a founding member, led a rapid response effort that hammered out a mutually satisfactory arrangement on inspections and fumigation that has permitted the trade to resume and grow.
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