U.S. exports of distilled grains with solubles should grow about 2.5 percent this season after declining 11 percent year-over-year in the first half of 2011, according to the Agriculture Marketing Resource Center.
The AMRC expects the U.S. to export about 8.9 million metric tons of DDGs by the end of August 2012. U.S. exports of DDGS will grow about 4.6 percent to 9.2 million metric tons in the year following, said AMRC, an Iowa University-based agriculture research center.
A decline of DDGS exports to China offset an 16 percent year-over-year increase of the ethanol production byproduct to Southeast Asia during the first half of this year, according to the U.S. Grains Council. China, the largest importer of U.S. DDGS, launched an investigation into alleged dumping of the ethanol production byproduct in January. China’s appetite for the material has skyrocketed in recent years as a feed grain for livestock as the country’s protein consumption has increased.
U.S. exports of DDGS during the first half of 2011 totaled 4.4 million metric tons, valued at more than $1 billion, according to the USGC. U.S. agriculture has been at the forefront of the country’s push to increase exports, with America farms expected to ship $135 billion in harvested products abroad this year.
DDGS exports to Vietnam, the largest Southeast Asian market for the grain used as animal feed, grew 11 percent between January and August because the country is expanding its swine and poultry industries, said Abel Yusupov, USGC director in Southeast Asia.
“The region is growing increasingly dependent on feed grain imports amid declining domestic crop production and burgeoning feed demand,” Yusupov said.