Ethanol Blog

Global Demand for DDG is "Murky", Says RFA's Cooper

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

Export demand for U.S.-produced dried distillers grains is somewhat "murky" due largely to trade barriers and interruptions in global trade of DDG, according to an article by Domestic Fuel (http://bit.ly/…).

Geoff Cooper, senior vice president of the Renewable Fuels Association, spoke to those attending the 2014 Export Exchange Oct. 22 in Seattle, sponsored by RFA and the U.S. Grains Council.

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Cooper said that the U.S. ethanol industry is producing ample supplies of DDG; the U.S. is expected to produce between 36 and 37 million tons of DDG in the current marketing year.

The large trade disruption, Cooper said, is the demands by China that all shipments of DDG be accompanied by an official certification that they are free of the MIR 162 biotech trait.

"That kind of certification is not possible," Cooper said to conference attendees. "So, we expect exports to China to be significantly curtailed or even halted until this situation is resolved."

Such a halt in trade is serious, since last year China purchased half of all the U.S. DDG exports. Although it doesn't make up for trade lost with China, other countries such as Mexico, Egypt, Turkey and other parts of Asia have increased their imports of U.S. DDG, Cooper said.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.

(ES)

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