USGC Kick Off Export Exchange 2010

Nearly 500 producers, suppliers, importers and end-users of U.S. distillers dried grains with solubles (DDGS) and coarse grains from around the world gather in Chicago this week for an event known as the place to Get answers. Make contacts. Build business. Starting tomorrow, the Export Exchange, co-sponsored by the Renewable Fuels Association and the U.S. Grains Council, hosts the world’s leading distillers grains marketers and ethanol producers to confront the most pressing issues facing the DDGS markets, including potential trade barriers, quality improvements and new evolutions in technology.

Distillers grains, the livestock feed coproduct of ethanol production, is quickly becoming one of the United States’ fastest growing exported commodity. As U.S. ethanol production grows and faces its own market pressures, so too is the production and use of distillers grains. In the near future, the U.S. feed market will become saturated with distillers grains, much like the gasoline and ethanol market today. Exports and other new markets for distillers grains will be essential to ensure this high value livestock feed continues to see its use grow.

USGC President and CEO Thomas C. Dorr said significant developments in the international DDGS market led to this rapid expansion. “We went from virtually no DDGS exports to more than 5 million metric tons in just five years. The United States will export roughly 7.5-8 million tons this year with the largest markets in Mexico, Canada and China. China alone imported more than 1 million tons and we expect that number to grow in 2011 to 2.5-3 million tons,” he said.

RFA President and CEO Bob Dinneen said, “U.S. ethanol producers’ ability to provide both high-quality fuel and livestock feed is putting pressure on conventional markets for each product. It is essential to our industry that we work with our trading partners and friends in livestock to develop good relationships and open new markets for distillers grains. I look forward to the next few days as the leaders in this industry seek solutions to expanding distillers grains markets.”

The Export Exchange 2010 is uniquely focused on connecting international buyers of DDGS and coarse grains with the U.S. market. The Council is providing sponsorship for the attendance of targeted international trade teams from more than 25 countries. These participants represent nearly 80 percent of the global export market for DDGS and coarse grains. The conference will address critical issues facing U.S. exports and seek to educate and build awareness of U.S. DDGS and coarse grains among international buyers.

Quelle: USGC – US Grains Council