USGC programs overcome market access barrier for DDGS in Vietnam

By U.S. Grains Council | October 26, 2018

In October 2016, Vietnam’s Plant Protection Department issued a decision to suspend imports of U.S. distillers dried grains with solubles (DDGS) following the detection of quarantine pests. This decision severely affected the U.S. DDGS export market as Vietnam was then the third largest export destination for the product, buying 985,000 metric tons in the 2015/2016 marketing year, valued at $210 million.

The U.S. Grains Council responded with an intense effort to address concerns and lift the suspension in coordination with the USDA’s Animal and Plant Health Inspection Service and the Office of the U.S. Trade Representative. The groups worked together in the United States and Vietnam to address the Vietnamese government’s concerns and help return open access to one of the fastest growing feed markets in the world.

As a direct result of the Council’s work, PPD agreed to a new fumigation protocol in September 2017, re-opening the market for U.S. DDGS. From November 2017 through March 2018, 462,000 tons of U.S. DDGS valued at $91.3 million were exported to Vietnam.

This program highlights the impact of U.S. industry partnering with USDA and APHIS to keep markets opened for U.S. exporters as well as the importance of having staff members in local markets who can react quickly and coordinate outreach on the ground.

The Council invested $50,000 of MAP funds to address this market constraint, creating a return on investment (ROI) of $1,826 for every $1 of MAP invested.