U.S. exports of distillers' dried grains with solubles (DDGS) have seen a decline in the first four months of 2025, according to the latest Grain Transportation Report released by the Agricultural Marketing Service. The report highlights a 7 percent drop in total DDGS exports compared to the same period last year, attributed to decreases in both production and purchases by top buyers.
DDGS, a co-product of ethanol production, accounted for 8 percent of total U.S. grain exports and 30 percent of containerized grain exports by volume in 2024. However, despite rising ethanol production in the first quarter of 2025, DDGS production fell by 4 percent compared to the same time last year and 1 percent below the three-year average.
The report identifies shifts in purchasing patterns among the top importers as a key factor in the export decline. Mexico, South Korea, Indonesia, Vietnam, Colombia, and Canada, which collectively received 65 percent of year-to-date DDGS exports, all saw decreases except for Colombia, which experienced a 47 percent increase. Notably, Turkey, previously the fifth-largest buyer in 2024, reduced its purchases by 43 percent.
The export landscape also reflects changes in shipping methods. While containerized DDGS exports gained market share from 2022 to 2024, both containerized and bulk exports have fallen in 2025. Year-to-date containerized exports decreased by 15 percent from the same period last year, while bulk exports dropped by 11 percent.
These shifts are partly attributed to changes in ocean freight rates. Bulk ocean rates have fallen relative to container rates, with bulk grain shipping rates from the U.S. Gulf to Japan down 16 percent from the prior year and 15 percent from the five-year average.
The report also notes recent developments that could impact future DDGS exports. Tariffs imposed on goods moving between Chinese and U.S. ports in April 2025 led to increased blank sailings and vessel repositioning. Although a 90-day pause on these tariffs was implemented in May, uncertainty remains regarding available vessel capacity.
Additionally, the United States Trade Representatives will assess fees on Chinese-owned shipping companies and non-Chinese companies operating Chinese-built vessels starting in October, which could further influence the DDGS export market.
As the industry navigates these changes, the report suggests that bulk and containerized DDGS exports, and consequently transportation demand, will continue to respond to evolving market conditions in ocean shipping.
