China Issues Preliminary Determinations in DDGS Investigations

The U.S. Grains Council (USGC) has been working to respond to recent preliminary duty determinations in ongoing antidumping and countervailing duties investigations by China.

The investigations began earlier this year and allege that U.S. policies have adversely impacted Chinese producers of distiller's dried grains with or without solubles (DDGS). USGC, the Office of the U.S. Trade Representative (USTR) and the U.S. ethanol and DDGS industries have strongly argued that these claims do not have merit.

On Sept. 23, China's Ministry of Commerce, commonly known as MOFCOM, issued a preliminary duty related to the antidumping investigation on U.S. DDGS for all producers of 33.8 percent, due at the time of product arrival.

On Sept. 28, MOFCOM issued preliminary duties related to the countervailing duty investigation on U.S. DDGS of between 10 and 10.7 percent, depending on the producer of the product, also due at time of product arrival.

USGC, the Renewable Fuels Association (RFA) and Growth Energy issued joint statements following both determinations expressing deep disappointment with them and offering continued engagement in the investigations with the hope that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China's interest.

The Council has worked for three decades in China alongside government agencies, industry associations, and the feed and livestock industries there to educate stakeholders about the benefits of both imported and domestic DDGS as an alternative feed ingredient.

Members of the U.S. DDGS industry believe strongly that trade is an important component of food security generally and that U.S. DDGS play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices.

USGC is also working globally to promote DDGS to other customers, who are finding it of increased value at higher and higher inclusion rates in markets in the Middle East, South America and Southeast Asia.

The full statements from USGC, RFA and Growth are available here and here.