On Thursday, China’s Ministry of Commerce said it will end an anti-dumping investigation against imports of U.S. distillers dried grains, paving the way for more imports of the animal feed. The ministry originally launched the anti-dumping probe in December 2010 at the request of domestic producers and extended the investigation last year for six months until June 28 this year.
Chinese feedmill demand for U.S. DDGS is strong as it costs less than feed grains. Exporters in the U.S. see the commodity as a significant new trade opportunity in China.
U.S. Grains Council President and CEO Tom Dorr said the investigation has had an impact on the markets. The U.S. first exported approximately 195 thousand tons of DDGS to China in 2009, with the amount increasing to nearly 2.3 million tons in 2010. In 2011, China’s imports of DDGS totaled 1.69 million tons, down 47 percent from 2010, as buyers feared Beijing might impose duties on imports.