Tag Archives: DDGS

The grain buyers from 35 countries who attended this year’s Export Exchange conference in Minneapolis have since reported buying an estimated $403 million worth of coarse grains and co-products, including distiller’s dried grains with solubles (DDGS) and feed grains.

The biennial event was held in October, sponsored by the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy to offer an opportunity for education and introductions to members of the U.S. grains production and export industries.

Buyers and end-users were polled while at the conference and immediately after regarding purchase agreements with sellers and how much volume (tonnage) they bought. In total, attendees reported sales of approximately 2.1 million metric tons of grains and co-products traded either at the conference or immediately before or after.

“Bringing buyers and sellers together in this way is crucial to U.S. farmers right now, and these sales show buyers at Export Exchange 2018 were serious about making deals,” said Tom Sleight, president and CEO of the Council. “Considering the international trade climate, we are pleased to see these number are holding steady.”

Many buyers this year noted their purchasing strategies were more short-term, due to uncertain relationship between the United States and China, but reported they valued their long-term partnerships with U.S. suppliers. Many also reported they are still considering future purchases.

The top grain traded during the two-day conference was DDGS, with more than 1.3 million metric tons collectively exchanged. This number translates to just over 11 percent of last year’s total U.S. DDGS exports. In addition, buyers reported contracting 619,000 metric tons of U.S. corn and 4,050 metric tons of U.S. sorghum.

“It’s no surprise that the top commodity traded during Export Exchange was DDGS, as last year we shipped the ethanol co-product to 50 countries on five continents,” said RFA President and CEO Geoff Cooper. “DDGS and other ethanol co-products provide a value-added market for the U.S. ethanol industry, and the Export Exchange was successful, providing an ideal platform to connect buyers and sellers.”

Export Exchange 2018 offered overseas attendees a unique opportunity to meet and build relationships with domestic suppliers of corn, DDGS, sorghum, barley and other commodities. Nearly 200 international buyers and end-users of coarse grains and co-products were in Minneapolis for the conference, held Oct. 22-24, and for related tours of U.S. farms, ethanol plans and export infrastructure as part of 21 Council-sponsored trade teams.

“The 2018 Export Exchange has once again demonstrated the numerous benefits that ethanol and its co-products, like DDGS, bring to the international market,” said Growth Energy CEO Emily Skor. “DDGS are the most extensively studied feed ingredient in the past 20 years and stands testament to the contributions of the biofuels industry in supporting global agriculture. This event is a critical venue for American producers to build bonds internationally and foster a healthy trade environment.”

Other grains traded at Export Exchange included:

• Corn Gluten Feed —54,000 metric tons;

• Corn Gluten Meal – 600 metric tons;

• Barley—500 metric tons; and

• Other products including soybeans, soybean meal, feed wheat – 70,000 metric tons

Growing demand for meat – including chicken, pork and beef – in Cambodia has spurred a commensurate increase in imports of U.S. distiller’s dried grains with solubles (DDGS), corn gluten feed and meal and the first major U.S. corn purchase in recent history.

That explosive growth led Manuel Sanchez, USGC regional director for Southeast Asia, and his team to attend the country’s prominent international feed and livestock industry show, Agri Cambodia 2018, in Phnom Penh, Cambodia, this fall. It was the largest gathering of farmers, millers, feed producers, veterinarians, processors and integrators to date in the nation.

“Cambodia’s feed and livestock production industries have witnessed significant growth over the past few years,” Sanchez said. “Major international producers have increased their investments in the number of feed mills in the country. The first aquaculture feed mill facility is set to finish construction in early 2019, and feed production is growing at an average rate of 15 percent per year.”

Dedication to small yet important markets like Cambodia is needed to satisfy growing demand for feed grain and build market share for the U.S. producers and exporters.

“Cambodia is taking the lead as one of the fastest growing economies in Asia,” Sanchez said. “Consumer demand for meat protein translates to U.S. market share for coarse grains and co-products. But we have to maintain a presence in the market to capture the potential.”

While in the country, USGC staff members also met with two of the country’s largest feed producers, making inroads with the primary organizations responsible for animal feed nutrition for the Cambodian swine, laying duck and quail, broiler, layer and aquaculture industries.

Cambodia bought 2,446 metric tons (96,300 bushels) in 2017/2018. The country made its first-ever U.S. DDGS purchase of 858 tons in 2010, with imports growing to 63,000 tons in 2017/2018. The country’s imports of corn gluten feed and meal have increased from 499 metric tons in 2016/2017 to 918 metric tons in 2017/2018.

“The Council has a goal to support Cambodia’s growing livestock industry in 2019, providing all the information and resources to position our coarse grains and co-products as vital components of the country’s raw materials needs,” Sanchez said. “By engaging with domestic veterinarians and feed formulations professionals there, we should be able to provide technical support and increase usage of U.S. DDGS in local feed rations for all feed sectors.”

On average, Cambodia’s meat consumption per person, per year stands at 16.13 kg, relatively low compared to neighboring countries like Malaysia, where consumption is 52.3 kg per person, per year, or the United States, where it’s 98.3 kg per person, per year.

The country’s demand for animal proteins is projected to increase 14.6 percent by 2020, according to a report by the Ministry of Agriculture, Forestry and Fisheries. Cambodia also estimates its number of tourists will exceed 6 million in 2018, contributing to increased demand for milk and eggs.