The United States is very keen on selling DDGS to China although no one is quite, quite certain that there could be no adverse affects. DDGS is Distillers Dried Grains with Solubles which is a co-product of the distillery industries.
Most (~98%) of the DDGS in North America comes from plants that produce ethanol for oxygenated fuels. The remaining 1 to 2% of DDGS is produced by the alcohol beverage industry.
Groups of economists say China is a potential market for an abundant US supply of DDGS.
"All market outlooks indicate that at a time when China needs to import more grains for its livestock sector, the US will grind 37% of its total corn production as feedstock for its ethanol production, creating a likely shortage of corn and a high corn price in the world market."
The economists say the unanswered questions are whether Chinese feed manufacturers will adopt DDGS as an ingredient, and whether China has the logistics to handle such a product.
MidWest Agent reports that Chinese farmers were concerned on two levels. First about the presence of unwanted chemicals, mycotoxins, and especially aflatoxin. The second worry was the variability of nutrient content. Plainly more research is needed.
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