China’s grain probe a danger to trade

China's recently launched anti-dumping investigation into US distillers' dried grains (DDGS) exports could be disruptive to trade, the US Grains Council said.

DDGS is a by-product of ethanol production and growing demand for meat in China has spurred a boom in animal feed production.

"China's unusual market and supply volatility over the last two years has resulted in new global trade flows," said Thomas Dorr, president and chief executive of the US Grains Council, in a statement.

"As trade flows change, it should perhaps not be surprising there would be an adjustment period in response to unprecedented demand."

Reuters reports that China has become the world's largest importer of DDGS, buying 2.9 million tonnes between January and November, 542 percent more than in the same months of 2009, according to data from China's General Administration of Customs. Almost all of the supplies were from the United States.

China's Commerce Ministry said earlier this week it would investigate how much damage the alleged dumping of DDGS had caused to China's own industry from January 1, 2007, to June 30, 2010. China produces about 3.5 million tonnes of DDGS per year.

An industry official who promotes US exports said US DDGS prices have been higher than Chinese prices since October. China was still buying because the quality of US DDGS was better, with higher protein and fat content.
(Source:www.cargonewsasia.com)