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China’s Market for Distillers Dried Grains and the Key Influences on Its Longer Run Potential

by Michael Jewison and Fred Gale

Outlook No. (FDS-12G-01) 25 pp, August 2012

Exports to China have become a significant source of demand for U.S. Distillers Dried Grains with Solubles (DDGS), the primary co-product from corn-based ethanol production.

Keywords: China, distillers dried grains, corn, exports, feed, ethanol

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Errata: On August 28, 2012, this report was corrected to add text inadvertently excluded from the original version. The following text was added to the end of the last paragraph on page 17, continuing on to page 18: “…designated producers exceed their authorized volumes when gasoline prices are high. The article’s findings could not be confirmed but listings on Chinese e-commerce sites checked by ERS include a number of companies listing “fuel ethanol” as one of their products. This could also imply a larger supply of domestic DDGS than is often acknowledged. Recent Chinese Government policy has sought to slow growth of ethanol and other industrial uses of corn but production has remained robust.”

Last updated: Tuesday, September 04, 2012

For more information contact: Michael Jewison and Fred Gale

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