China claims US-subsidized DDGS are injuring its DDGS industry

By Erin Voegele | September 28, 2016

On Sept. 28, the Ministry of Commerce of the People’s Republic of China issued a preliminary ruling, claiming U.S. distillers grains are being unfairly subsidized by the U.S. government and are causing injury to China’s domestic distillers grains industry. The ruling applies to dried distillers grains with or without solubles (DDGS).  “U.S. DDGS have not caused any injury to China’s DDGS producers. This announcement is not a surprise given MOFCOM’s treatment of the U.S. DDGS industry last week.

“U.S. DDGS play an important role in protecting Chinese feed producers and households against unpredictable swings in global commodity prices,” said the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association in statement. “We will continue cooperating fully with these investigations, and we remain hopeful that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China’s interest.”

Less than one week earlier, on Sept. 23, China’s Ministry of Commerce issued a preliminary determination claiming that U.S. DDGS are being dumped and are causing injury to China’s DDGS industry.