China’s Slowing Ethanol Growth May Spur Animal-Feed Imports

Source: Jeff Wilson • Bloomberg  • Posted: Monday, February 13, 2012

China’s five-year plan to slow domestic production of grain-based ethanol will mean tighter supplies of a byproduct used for animal feed, boosting demand for imports through 2016, the U.S. Grains Council said.

Imports of the byproduct, called dried distiller’s grain, from the U.S. may rise to 6 million metric tons in four years, almost double the 3.1 million tons imported in the 2009-2010 marketing year, according to research conducted by Shanghai JC Intelligence Co., the grains council said in a report today. Imported U.S. feed will account for about 42 percent of expected total consumption in China, JC Intelligence said.

China, the world’s second-largest corn consumer, announced an anti-dumping investigation last year that slowed imports of U.S. feed made from ethanol, the council said in the report. The results of that study will not result in barriers to future purchases from the U.S., the world’s leading producer and exporter, the group said.