The strength of U.S. distiller's dried grains with solubles (DDGS) exports have been bright spot in a tough year for U.S. feed grains, with especially strong export growth in Southeast Asia setting the pace. Through the first half of calendar year 2013, total U.S. DDGS exports are up 6 percent. In Southeast Asia, however, growth clocked in at 9 percent, with major gains in Thailand (up 53 percent) and Indonesia (up 42 percent) more than offsetting declines in Malaysia and the Philippines. Overall, U.S. exports to the region were up 605,000 metric tons.
"In Southeast Asia, DDGS are a beachhead export commodity for the United States," said Adel Yusupov, U.S. Grains Council regional director in Southeast Asia. "While India and South America are our major regional competitors in coarse grains, DDGS is a key product where the United States commands a significant advantage due to its unique mix of quality feed protein and energy benefits for poultry and swine. Southeast Asia's commercial feed production, currently at 60 million metric tons, is about one-third of China's and growing at 5 - 8 percent per year, driven by consumers' preference for higher value calories. We are working to tap into these markets and build demand for DDGS across all animal sectors."
U.S. DDGS shipments were threatened last year by the discovery of insect pests in a container shipment to Vietnam. Yusupov and the Council led a rapid response effort that hammered out a mutually satisfactory arrangement on inspections and fumigation that has permitted the trade to resume and grow. Click here to learn more.
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