China’s regulatory requirements for imports of distiller’s dried grains with solubles (DDGS) are complex, stringent, and a serious burden for U.S. ethanol plants, but the U.S. Grains Council’s recent DDGS regulatory mission holds promise for improving the situation.
The vision, leadership, determination and creativity of agriculture producers in the United States created a surplus that helped other countries work their way to prosperity and achieve food security through trade. Yet U.S. agricultural productivity continued to soar, allowing the challenge of a surplus of corn to be turned into an opportunity to develop a world-leading ethanol industry that enhances the nation’s energy security.
To gain a more thorough understanding of the production and use of U.S. distiller’s dried grains with solubles (DDGS), the U.S. Grains Council organized a mission from China to visit the United States. The delegation included representatives from China’s DDGS regulatory team, including those involved in the DDGS registration process within China.
Over the past five years, Mexico’s imports of U.S. distiller’s dried grains with solubles (DDGS) have grown from 360,000 metric tons in 2006 to just over1.6 million tons in 2010. With the support of Market Access Program (MAP) and Foreign Market Development (FMD) funding, the U.S. Grains Council encouraged this upward trend by forming relationships with local end-users in Mexico.
Historically, distiller’s dried grains with solubles (DDGS) has been an unknown product throughout Jordan and the Middle East. Promotion of DDGS in the Middle East has two significant obstacles. Ethanol has been viewed with suspicion as a possible competitor to Middle Eastern oil and DDGS seen as an offshoot of the forbidden alcohol trade. However, two years of marketing efforts by U.S. grain farmers, bolstered by Market Access Program (MAP) and Foreign Market Development (FMD) program funds, have raised the positive profile of U.S. DDGS in the region.
The utilization of distiller’s dried grains with solubles (DDGS)—a co-product of U.S. ethanol production used as a feed ingredient for livestock—is gaining popularity in markets around the world. Market Access Program (MAP) and Foreign Market Development (FMD) funds support U.S. producers’ and agribusiness efforts in the development, maintenance and expansion of U.S. corn, barley, sorghum and related co-product exports through the U.S. Grains Council.
Meeting with more than 25 key customers and trade partners in Japan, Taiwan and China, a six-member delegation of U.S. corn farmers and industry representatives returned Saturday from a 13-day trade mission.
Exploring the use of U.S. corn and its co-products in established and emerging markets, the 2010 U.S. Grains Council Corn Mission worked to strengthen relationships and encourage future partnerships with foreign agricultural producers.
In efforts designed to continue building relationships between India and the United States, the U.S. Grains Council hosted a group from India on an educational tour in Iowa last week that provided details on biotechnology, as well as insight into ethanol production and distiller’s dried grains with solubles (DDGS).
The U.S. Department of Agriculture today released its World Agricultural Supply and Demand Estimates (WASDE) reflecting the third-largest corn crop and yield on record. While this month’s report lowers U.S. corn yield and production estimates from the previous month, U.S. Grains Council President and CEO Thomas C. Dorr said these market challenges will be addressed.
“As U.S. ethanol plants become more advanced with improvements in drying methods, processes and manufacturing, the quality consistency of DDGS and new co-products has also improved. This is essential as the demand increases for distiller’s grains and other ethanol co-products,” said Dr. Randy Shaver, professor at the University of Wisconsin-Madison, who will speak at the upcoming Export Exchange 2010.