USGC improves Japanese confidence in low oil DDGS

By U.S. Grains Council | September 27, 2013

Japanese importers have noticed that the U.S. ethanol industry has been utilizing corn oil extraction equipment, which removes a portion of the non-food grade corn oil in distiller's dried grains with solubles (DDGS) during the ethanol production process, making the oil available for other use. This also changes the feeding characteristics and potential value of DDGS, as regular DDGS may contain 10-12 percent oil (fat), while the low-oil variety may contain 6-9 percent.

Japanese DDGS importers want to know how to adapt to the low oil DDGS in their livestock rations and still maintain their current level of nutrient availability in their rations. To help answer their questions, the U.S. Grains Council escorted a team of Japanese feed and livestock industry representatives through Nebraska to get firsthand information on U.S. DDGS production, supply and developments in the U.S. ethanol industry.

"The information the team gained on this visit gave them concrete ideas on how to utilize the low oil DDGS in their livestock rations to obtain similar results compared to high oil DDGS," said Tommy Hamamoto, USGC director in Japan. "The confidence the Japanese DDGS importers gained during their visit leads me to believe that Japan will continue to increase their U.S. DDGS imports."

The Council has been active in promoting U.S coarse grains to Japan for more than 50 years. While Japan is a mature market, the feed industry imported more than 450,000 metric tons of DDGS in the calendar year 2012, which was a 35 percent increase from the previous year. The Council plans to continue promoting DDGS, including the low fat types, to Japanese importers.