Grainnet

This article is reprinted from the Jan. 9 USGC Global Update.

Fluctuating grain prices related to the world’s current financial situation may provide a wider opening in overseas markets for alternative feed ingredients such as U.S. distiller’s dried grains with solubles (DDGS).

In a country such as Taiwan, which relies almost 100 percent on feed grain imports to meet domestic demands, DDGS may buoy local hog and poultry producers who have been struggling with high corn and soybean meal prices.

“Hog producers have complained that the prices of corn and soybean meal are too high and the market prices for hogs are too low to be profitable,” said Clover Chang, USGC director in Taiwan.

“They have also complained that the price of corn in the United States has decreased by more than 50 percent while the prices of corn and completed feeds domestically remain quite high.”

In an effort to ease the pressures faced by Taiwan’s hog and poultry industries, the country’s Council of Agriculture (COA) implemented several measures including feed formulation revisions using alternative feed ingredients such as DDGS, which may reduce feed costs.

“The COA requested researchers at the Animal Technology Institute in Taiwan and the Livestock Research Institute to help in revising feed formulation to include alternative feed ingredients,” Chang said.

“In fact, DDGS is one of the best alternative feed ingredients available and could aid Taiwanese producers during a time of high feed prices.”

The United States already enjoys a large market share in the Taiwanese market in terms of DDGS imports.

According to October statistics, DDGS imports during January-October 2008 reached 190,888 metric tons.

As most of the corn gluten meal imported during that period (56,108 tons) was actually DDGS, actual DDGS imports during that time span could be about 230,000 tons with a 95 percent U.S. market share, Chang said.

Meanwhile, the Council continues to promote the product to Taiwan with latest efforts taking place Oct. 19-26 during the International Distiller’s Grains Conference and Trade Show in Indianapolis, IN.

The global financial situation has not yet caused major problems for Taiwanese grain importers, which is a promising sign.

“Based on a reliable source, although Taiwan’s economy has been sliding into recession, most of the local traders have had no credit problems related to grain imports,” Chang said.

“This is good news for imported feed grain products, including U.S. DDGS.”

For more information, call 202-789-0789.

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