Export Exchange Follow-Up: Southeast Asia DDGS Buyers Still Adapting to Low-Oil DDGS

During last month’s Export Exchange program in Seattle and associated pre- and post-tours, Council staff discovered that some end-users in Southeast Asia are still learning how to adjust to the newer, low-oil distiller’s dried grains with solubles (DDGS) now reaching the market.  Many are limiting inclusion rates to dampen the effects of nutrient composition variability from different DDGS producers.

Building Contacts between U.S. Suppliers and Fast Growing Economies

By: Kevin Roepke, U.S. Grains Council Regional Director for South and Southeast Asia

Delegates from South and Southeast Asia, a region which includes some of the world’s fastest growing economies, recently had the opportunity to gain firsthand knowledge of U.S. agricultural technologies, logistics and production outlooks during a U.S. Grains Council (USGC) led trade team tour associated with Export Exchange 2014. 

Southeast Asian Feed Sector: Corn, DDGS and CGM

SEA feed industry demand for corn

This U.S. Grains Council’s chart of note illustrates five Southeast Asian countries’ growing demand for corn as livestock feed.

 In 2004, the region’s feed sector corn demand was 15 million metric tons. Less than a decade later, that demand has grown to more than 25 million tons, a 66.7 percent increase. This rise in demand is amid a decrease in the availability of local corn supplies, which results in a higher reliance on imported coarse grains and co-products.

U.S. DDGS Exports Up 48 Percent

The United States recorded its highest ever monthly exports of distiller’s dried grain with solubles (DDGS) in July, bringing the total U.S. DDGS exported this marketing year to 7.2 million metric tons, a 48 percent increase over the same time period last year.

Behind this market expansion are U.S. Grains Council educational seminars and feeding trials, complimented by consistent end-user contact and support. In emerging markets around the world, the Council continues to work to expand the market for U.S. DDGS.

USGC Names Kevin Roepke as Regional Director of South and Southeast Asia

The U.S. Grains Council (USGC) is pleased to announce the promotion of Kevin Roepke to regional director of South and Southeast Asia. Since January, Roepke has worked as a director of trade development in China.

"During his short time in China, Kevin has proven himself to be an extremely valuable member of our international staff," said USGC President and CEO Tom Sleight. "His strong business and trade background, excellent insights into the market and exceptional communications skills make him an ideal fit for this region.”

Vietnam Grants Licenses to Four Genetically-Modified Corn Varieties

The Vietnamese Ministry of Agriculture and Rural Development (MARD) for the first time has granted licenses to four genetically-modified corn varieties to be used for both human consumption and animal feed. 

This process started four years ago when Vietnam announced it would start field trials of these four varieties of genetically-modified corn. Since then, the varieties have gone through extensive testing and evaluation, as well as being approved by Vietnam’s Council of Food Safety for Genetically-Modified Food and Animal Feed.

New Malaysia Import Regulations: U.S. DDGS and CGM Receive Permanent Exemption

Malaysian officials last week agreed to permanently exempt imports of U.S. distiller’s dried grains with solubles (DDGS) and corn gluten meal (CGM) from that nation’s new, more stringent sanitary and phytosanitary (SPS) and inspection regulations for agricultural commodities. The decision makes permanent a temporary exemption, granted in May, for the period from July 31 to Dec. 31, 2014.

Biofuels Mandates as Driver of Potential Ethanol Demand

This Chart of Note shows the theoretical volume of ethanol demand by non-U.S. markets with existing biofuels mandates. If countries enforced existing biofuels mandates using ethanol, their gasoline use in 2012 would suggest that the top 10 ethanol consumers would require 3.5 billion gallons of the renewable fuel. The next 10 would add another 393 million gallons of demand.

WTO Bali Ministerial Agreement in Jeopardy

World Trade Organization (WTO) members failed last week to overcome objections from India that vetoed the implementation of the Trade Facilitation Agreement (TFA), an integral part of the WTO Ministerial agreement adopted last December. Ignoring the commitments it made at the Bali ministerial, India insisted that a permanent agreement must be reached on public stockholding for food security purposes before it would sign on to the TFA.

Trans-Pacific Partnership Negotiations Continued in Ottawa

In July, chief negotiators from the 12–countries participating in the Trans-Pacific Partnership (TPP) talks met in Ottawa, Ontario, to continue their work. The TPP is a potential free trade agreement between countries in the Asia-Pacific region, including Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, the United States and Japan.

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