News & Events
The market is rapidly adjusting to the new ground rules for U.S. distiller’s dried grains with solubles (DDGS) exports to China. While the government in China has yet to issue a formal announcement, traders have been told unofficially that no new DDGS import permits will be issued for the time being, and that incoming cargoes of DDGS entering under existing permits will be subject to more stringent inspection for biotech events that are not approved in China.
Last week’s International Grains Council Conference in London featured thought-provoking presentations from industry leaders around the world. Among them was Feng Jilong, general manager of the Dalian Northern International Grains Logistics Company, who spoke on the long term evolution of China’s corn import demand.
Last week exporters were rocked by reports that China may suspend the issuance of new import permits for U.S. distiller’s dried grains with solubles (DDGS), and subject currently permitted imports to more stringent testing for the presence of unapproved biotech events.
While no official statement from the government in China has been forthcoming, the resulting uncertainty is roiling trade in what is currently the largest U.S. DDGS export market.
The expansion of livestock production in feed-deficient countries is the biggest driver of growth in the coarse grain trade. In both China and Taiwan the U.S. Grains Council has hosted numerous swine programs to increase swine producers’ technical knowledge. These countries have seen expansion and/or upgrades in farming efficiency in their pork industries.
This week, the Council sponsored two international teams, from China and Taiwan, to attend the World Pork Expo as well as to complete several different short courses about new advances in U.S. swine production.
The U.S. Grains Council helped organize, and participated in, a group of ethanol industry representatives that visited China May 10-13. The team was part of a larger International Trade Mission to China led by USDA Undersecretary Michael Scuse.
“China is clearly a potential market for U.S. ethanol,” says Bryan Lohmar, USGC director for China. “Policy makers in China are committed to improving air and water quality as well as reducing public health hazards. Based on these criteria, ethanol as an oxygenate additive in transportation fuel has superior qualities compared to the additives currently being used in China.”
The dynamic evolution of China's economy is leading to an increased demand for imports, particularly with a growing, affluent population and corresponding demand for more protein-rich diets. With a population of 1.3 billion -- and expectations to reach 1.4 billion by 2030 -- even a small shift in food trends can myriad opportunities for exporting the feed grains necessary for expanded meat production.
The U.S. Grains Council has been on the leading edge of organizations working with the Chinese government to meet these demands.
By: Jason Yan, U.S. Grains Council Technical Program Director in China
Swine production in China is both growing and rapidly consolidating into large operations. The U.S. Grains Council supports the continued expansion of large swine operations in China because growth of a modern livestock sector in China will not only improve efficiency and food safety, but also increase feed grain utilization as many smaller operations use substandard feeds.
With the Farm Bill passed and the Market Access Program (MAP) and Foreign Market Development program (FMD) reauthorized at current levels, we pause to remember why the proven partnership between USDA and the U.S. Grains Council is so important.
The dynamic of trade is changing in China as the country looks toward expanding sources of grain to supply chain, food security and meet a growing demand for high-protein products for its rapidly expanding middle class.