Higher ethanol co-product exports expected

Delta Farm Press
Dec 9, 2008 10:12 AM

According to Dan Keefe, U.S. Grains Council manager of international operations for distiller’s dried grains with solubles, U.S. DDGS exports are likely to recover in January, rebounding from a sluggish fourth quarter.

Freight costs had been the primary factor in causing a loss of export sales of U.S. DDGS, a co-product of U.S. ethanol production.

“What we saw occur was bulk freight costs drop substantially relative to container freight costs,” said Keefe. “Container freight is usually the most common transport mode for DDGS and lower bulk freight costs made corn cheaper on a delivered basis, causing DDGS exports to suffer.

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