Top Crop Manager

News
US sales of distillers grains to China continue

The United States Grains Council continues to find buyers of dry distillers grains with solubles (DDGS) in China, following the purchase of 150 tonnes by three different interests.


July 11, 2008
By United States Grains Council

July 11, 2008

China continues to import U.S. distiller’s dried grains with solubles (DDGS) after three different Chinese buyers purchased a total of 150 metric tons (50 tons each) this past March.
The next U.S. DDGS shipments are expected to arrive in late July and August, according to Cary Sifferath, U.S. Grains Council senior director in China.

“Feed ingredient prices have helped make U.S. DDGS attractive to local buyers,” Sifferath said. “Soybean meal and other protein meal prices, especially in southern China, have increased in the past month. This has driven up the cost of Chinese DDGS, making the price of U.S. DDGS competitive in the South.”

Sifferath said sales totaling 800 tons have taken place within the past few weeks. Guangdong Haid Group Co. Ltd. has been the biggest buyer of U.S. DDGS so far and was one of the three companies that imported U.S. DDGS in March. The feed company uses 55 percent of its feed production for aquaculture and the other 45 percent for swine and poultry (broilers, ducks and layers) feed.

Another major buyer is Guangdong Wen’s Food Group Co. which, like Guangdong Haid Group, was also a purchaser in March. Sifferath said the DDGS sellers are Council member companies, adding that several Council DDGS supplier members visited with Guangdong Haid Group Co. Ltd. and Guangdong Wen’s Food Group Co. during the Council’s DDGS workshops held in China in May.

The USGC International DDGS Conference to be held in Indianapolis, Ind. in October will provide more opportunities for Chinese feed companies to become familiar with the U.S. co-product.

“We have extended a conference invitation to Chinese feed companies that have already imported U.S. DDGS as well as to those we feel may do so in the future,” Sifferath said. Including the expected July and August shipments, China has imported 950 tons of U.S. DDGS in 2008.