USGC North Asia offices work together on US DDGS education

By U.S. Grains Council | August 18, 2020

The North Asian offices of the U.S. Grains Council teamed up in July to jointly conduct a webinar addressing the efficient use of U.S. distillers dried grains with solubles (DDGS) in swine and poultry diets as well as overall DDGS supply and demand.

“The Council regularly conducts and shares information on U.S. DDGS quality and availability through seminars like this webinar,” said Reece Cannady, USGC manager of global trade. “This program helped users regain their confidence in incorporating U.S. DDGS into their livestock rations following fluctuations in spring production, export availability and pricing.”

DDGS imports and consumption in North Asia decreased in spring 2020 due to COVID-19-related declines in ethanol production. Since mid-May, consumption by the livestock feed industry is showing signs of recovery. Because many feed companies replaced DDGS with low-cost corn or soybean meal during the supply crunch, the Council circled back with these customers on the economic and nutritional benefits of U.S. DDGS to increase the inclusion rate in feed rations.

The resulting seminar—organized by the USGC offices in South Korea, Japan and Taiwan—included a presentation on DDGS and a robust question-and-answer session with a DDGS consultant and USGC staff. Questions focused on highly technical topics, including mycotoxins, antibiotic use, net energy content, rumen by-pass protein and effects on intermuscular fat in carcasses, among other topics.

“Providing continual technical support is important for boosting DDGS inclusion rates in diets for all species and increasing overall imports,” Cannady said. “Our customers are interested in learning even more about DDGS, including high-protein DDGS, mitigating mycotoxin risks and use in aquaculture.”

In addition to trade servicing activities by the Council, trade policy has helped maintain DDGS competitiveness in North Asian markets. Since the U.S.-Korea Free Trade Agreement (KORUS) went into effect in 2012, South Korea has steadily increased imports of U.S. DDGS, hitting a new high each year. The phase one U.S.-Japan trade agreement also preserved duty-free market access for U.S. DDGS into Japan. And in 2019, the Taiwan Goodwill Mission pledged to purchase 500,000 tons of U.S. DDGS over two years.

Learn more about the Council’s work to promote DDGS in Asia.