|
|
|
|
|
|
|
| DDGS export potential looks good to Illinois Corn officials |
|
|
|
<b>By TIM ALEXANDER<br>
Illinois Correspondent</b> </p><p>
SAN ANTONIO, Texas — Distillers dried grains with solubles (DDGS) is experiencing increasing acceptance in foreign markets and providing a good return on investment, Ron Gray, Illinois Corn Marketing Board (ICMB) chairman, told those attending a U.S. Grain Council (USGC) international marketing conference in San Antonio on Feb. 11.<br>
The ICMB and USGC are gaining ground in promoting the ethanol co-product overseas as more industry users become familiar with the product through ICMB-organized feeding trials, educational workshops and other programs funded by corn growers through their checkoff, according to the ICMB.<br>
Gray pointed to increased DDGS use in Egypt, which imported 32,200 metric tons of U.S. DDGS in the 2006-07 market year compared with just 6,400 metric tons in 2005-06, as an example of the importance of DDGS exports to Illinois farmers and ethanol producers. Similarly, Morocco has increased its consumption of ethanol co-products to 54,000 metric tons with the potential to use up to 600,000 tons per year in the near future.<br>
“We have been putting a lot of focus on introducing DDGS to the Moroccan market,” acknowledged Kurt Shultz, USGC’s director of the council’s Mediterranean and African office in Tunisia.<br>
Gray said while DDGS exports are high on the list of the ICMB’s priorities, improving domestic accessibility and quality of ethanol co-products is still on the front burner. ICMB believes the future success of marketing ethanol as an alternative to expensive foreign oil is directly linked to the ethanol industry’s success in marketing co-products like DDGS.<br>
“There is a growing misconception that with ethanol we have to make a choice of food or fuel,” Gray said. “This is very misleading. Only 8 percent of our corn crop goes into food products.
“However, more than half the corn crop is consumed by livestock producers in the U.S.<br>
“Ethanol production uses only the starch from corn. The ethanol production process removes the most valuable food and feed products and concentrates the protein feed in the form of DDGS.”
USGC officials offer promising outlooks for emerging markets for co-products in places such as Iraq and India.<br>
“Future predictions show that the industry will increase by 25 percent within the next five years as the Council continues to promote ideas of modern trade and assists in the transfer of technical support to local farmers,” said a USGC consultant in Iraq.
USGC is currently working with government officials to remove a 15 percent duty on exports to India, calling it an emerging market with huge potential for U.S. corn and co-product exports. By eliminating the duty, USGC hopes to create feed demand by increasing domestic poultry consumption.<br> |
| 2/20/2008 |
|
|
|
|
