U.S. exports of distiller’s dried grains with solubles (DDGS) to Southeast Asia have increased 16 percent so far this marketing year, according to data from the U.S. Department of Agriculture (USDA) and analysis by the U.S. Grains Council (USGC).
The Southeast Asian region – which includes Brunei, Cambodia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam – currently represents the third largest market for U.S. DDGS. Thus far in the marketing year (September 2016-May 2017), sales to the region totaled more than 1.7 million metric tons, accounting for 20 percent of overall U.S. DDGS exports.
U.S. DDGS exports have increased to seven of the eight countries within the region this marketing year. Year-over-year, shipments of U.S. DDGS have increased by 55 percent to Thailand, to 630,000 tons, and 42 percent to Indonesia, to 348,000 tons.
In addition, U.S. DDGS exports have more than doubled to both Malaysia and Myanmar compared to the same time the year prior. While sales are down to Vietnam due to outstanding market issues, the country’s more than 490,000 tons in purchases still rank as the seventh largest market for U.S. DDGS.
The Council continues to expand efforts DDGS sales in Asia, including with recent grain conferences in Taiwan, Thailand and Vietnam, to provide technical expertise and support as well as connect grain buyers and end-users with U.S. suppliers.
The Council is also actively promoting the benefits of U.S. DDGS as a high-quality feed additive through programs like a recent engagement with KFC in Malaysia. This work throughout the region is helping end-users determine how best to incorporate U.S. DDGS into their rations and, combined with attractive prices and available supply, are seeing results in increased demand.