Despite Challenges, U.S. DDGS Exports Finishing the Year Out Strong

DDGS
Source: U.S. Grains Council
DDGS
Source: U.S. Grains Council

Exports of U.S. distiller’s dried grain with solubles (DDGS) are still going strong this marketing year, despite recent trade barriers in China, thanks to competitive prices and U.S. Grains Council (USGC) programs showcasing the product’s benefits. As of September, the United States has exported approximately 9.2 million metric tons this marketing year, 95 percent of the total U.S. DDGS exports in the entirety of 2013. 

While China accounted for about 50 percent of U.S. DDGS exports in the first half of 2014, new restrictions announced by China in July have led to a decline in U.S. DDGS sales to that country from an average of more than 500,000 tons per month to just 167,000 tons in September. However, sales to the rest of the world surged in September from about 500,000 metric tons per month to 745,000 tons, about 81 percent of U.S. DDGS exported that month.

Other markets have reacted favorably to the buying opportunity created by the disruption in Chinese imports. Countries that have increased their purchases include Japan, South Korea, Southeast Asian countries, and even Mexico and Canada. 

As market conditions continue to favor DDGS exports, the Council is committed to keeping this momentum going by further expanding its successful DDGS programs throughout the world, including training seminars, feeding trials and ongoing support for DDGS end-users. 

USGC staff and consultants are located in all the major DDGS importing countries around the world and are engaged in educating customers about DDGS and the competitive advantage that using U.S. DDGS provides.