WASHINGTON, DC, US — Exports of US distillers’ dried grains with solubles (DDGS) increased 15% year-to-date, reaching their highest level since 2018, according to the Aug. 22 Grain Transportation Report from the US Department of Agriculture (USDA).

The USDA attributed the increase to strong ethanol production and robust demand from the top six buyers. Containerized exports were particularly strong, increasing 34% from the same period last year. These shipments gained market share from bulk grain shipping, which experienced logistics issues.

In the first half of 2024, US DDGS production increased 10% from the same time last year to 10 million tonnes. Exports were just under 6 million tonnes, a 15% increase from the same time last year and 9% higher than the three-year average.

In the first half of 2024, the top six buyers — Mexico, South Korea, Indonesia, Vietnam, Canada and Turkey — had received 65% of total US DDGS exports. Compared to the same period last year, exports of DDGS increased to all top buyers (except Turkey, which had a 10% drop), the USDA said.

The largest volume increases were to Indonesia (37%) and Mexico (26%), followed by Korea (18%), Vietnam (15%) and Canada (6%).

Although China’s purchases of US DDGS were not strong enough to rank among the top buyers, that country’s purchases also rose substantially. Last year, China renewed antidumping and countervailing duties on US DDGS for another five years.

Despite that decision, China’s purchases of US DDGS were up 33% from the same period last year, marking their highest level since 2021.

Those purchases accounted for 3% of total year-to-date exports of US DDGS. Feed industry sources in China said they prefer US DDGS for its superior quality and high protein content, as well as competitive prices, the USDA said.