Corn Gluten Feed
Free trade agreements help provide market access for some of the largest purchasers of U.S. grains and for some smaller but steady buyers. Israel, as the first market with which the United States signed a free trade agreement, is a good example.
Using MAP funds, the USGC has been educating the larger commercial feed companies and other large end-users in Algeria about the benefits of utilizing DDGS and CGF in livestock rations. The Council sees opportunities for these products fitting well into both the Algerian poultry and dairy industries. In 2013, Sarl Nutrimag, an Algerian commercial importer, made the first-ever purchase of U.S. DDGS and CGF into Algeria. In combination with technical assistance and training for end-users, this is an opening for additional purchases of U.S. corn products in the future.
Intensive efforts continue in Malaysia to seek clarification or amendment of new agricultural import regulations, which threaten to impose costly new burdens on a wide range of commodities from several exporting countries. The U.S. Grains Council and the U.S. Soybean Export Council are working closely with USDA's Foreign Agricultural Service Malaysia office and APHIS to reduce or eliminate the negative impact of these new regulations on U.S. export cargos. Local stakeholders in the Malaysian feed, trade and livestock sectors are also expressing their concerns to the Malaysian government.
Corn gluten feed (CGF) and meal (CGM) are the highly nutritious co-products of the corn refining (wet-milling) industry. CGF and CGM are not to be confused, as CGF has roughly 20 percent crude protein, whereas CGM has approximately 60 percent crude protein.
The U.S. Grains Council, in August 2011, successfully achieved the inclusion of distiller's dried grains with solubles (DDGS), corn gluten feed and other U.S. commodities on the Saudi Arabian import subsidy list. Inclusion on this import subsidy list is essential in eliciting interest from Saudi importers of these products. This effort paid off when a Saudi Arabian company, ARASCO, purchased a bulk shipment of U.S. DDGS destined to reach Saudi Arabia in January 2014.
In September an Algerian commercial importer made the first ever purchase of U.S. distiller's dried grains with solubles (DDGS) and corn gluten feed (CGF) into Algeria. This was made possible in part by U.S. Grains Council efforts that led to the successfully removal in September 2012 of the value added tax (VAT) and custom tax on all feed imports in Algeria, including DDGS and CGF.
For the past six years, Israel has been a small but steady buyer of U.S. corn co-products such as distiller's dried grains with solubles (DDGS), corn gluten feed and corn gluten meal as seen in the chart. U.S. feed grains have a difficult time competing in Israeli's market due to competition from the Black Sea region and from South America. Even with this competition, however, U.S. corn co-products have found a niche market in Israel.
Registration is now available for the Export Exchange 2012, an international trade conference focused around the export of U.S. distiller's dried grains with solubles (DDGS) and coarse grains. The event—co-sponsored by the U.S. Grains Council and the Renewable Fuels Association—will be held Oct. 22-24, 2012, at the Minneapolis Marriott City Center, Minneapolis, Minn.
Don’t miss your chance to actively promote your product in the coming USGC “Buyers” Conferences to be held in Panama City, Panama, on Oct. 18-21, 2011, and in Geneva, Switzerland, on Nov. 12-14, 2011.
Upon completion of a recent U.S. Grains Council market assessment in Chile, staff and consultants concluded that Chile could easily import up to one million metric tons of U.S. corn products including distiller’s dried grains with solubles (DDGS) and corn gluten meal annually, despite a slow decline in current import levels.
In 2010, Chile imported roughly 140,000 metric tons of U.S. corn gluten meal and DDGS, down from its record high of 200,000 tons in 2008.