USGC identifies additional DDGS markets in Asia

By Ron Kotrba | October 06, 2008
The U.S. Grains Council was busy promoting expanded markets for corn and distillers dried grains with solubles (DDGS) this summer. Six members from the 2008 Corn Mission visited Vietnam, Indonesia and Taiwan in August to grow markets for U.S. corn and DDGS.

Of the three countries visited, the least-developed market for DDGS is Vietnam, according to the USGC. One particular DDGS market growth opportunity there is aquaculture, specifically catfish and tilapia farms. Mike Callahan, USGC director of international operations in Asia, noted that Vietnam aquaculture can potentially absorb up to 200,000 metric tons of the ethanol coproduct annually.

However, concerns were raised over yellowing of catfish flesh when the fish were fed DDGS, according to the USGC, spurring the council to plan DDGS feeding trials on catfish for the near future. Tilapia feeding trials using 15 percent DDGS were previously conducted by the council.

Mission members also identified a lack of available credit due to no Export Credit Guarantee Program (GSM-102) in Vietnam and the surrounding regions. The GSM-102 program is administered by the USDA's Commodity Credit Corp. and helps to establish export credit guarantees to "encourage exports to buyers in countries where credit is necessary to maintain or increase U.S. sales, but where financing may not be available without CCC guarantees," according to the USDA's Foreign Agricultural Service.

In other DDGS news, an eight-member group from the Japanese Feed Industry DDGS Pelleting Team recently attended the Northern Crops Institute's "DDGS: Nutrition, Use and Feed Manufacturing Short Course" in Fargo, N.D. The team, sponsored by the USGC, attended the short course to learn more about incorporating DDGS into pelleted feed. The team also visited a dairy research program, and both small and large ethanol plants to gain better understanding of why DDGS variability exists, according to Kim Koch, NCI Feed Center manager.