Brazil's Inpasa increases exports of dried distillers grain to China

Inpasa, a Brazilian corn ethanol manufacturer, will increase exports of dried distillers grains with solubles to China in this year. Gustavo Mariano Oliveira said Friday. Inpasa produces DDGS (a corn ethanol product used as animal feed) in the amount of 3.3?million metric tons per year. The company announced on Tuesday that it would be making its first shipment to China soon.

In an interview, Oliveria said that the company has already signed contracts for an additional 250,000 tonnes of DDGS to be exported to China in this upcoming year and could secure shipments totaling up to 1,5 million tons by 2026. He added that China could soon account for half of DDGS exports.

Oliveira stated that "China will be the dominant player in a short time, accounting for 40 to 50 percent of our exports." Brazil's corn ethanol production is exploding, after sugarcane biofuels dominated the country for many years. Sales of DDGS have been a major factor in the growth, as they are in high demand in Brazil's beef industry and elsewhere. Brazil's producers have also benefited from the strained relations between China, a major commodity buyer, and the U.S. China approved Brazilian sorghum imports last year at a time that U.S. exports?fell' to the Asian nation.

Oliveira stated that the situation of last year had created an opportunity. "It is a wonderful opportunity and we see that this door should remain open for the next few years."

He said that China was not the only country to which Brazil's DDGS could be exported.

Oliveira stated that "we have seen more demand from Europe". Spain is the largest buyer of Inpasa DDGS but he says that more countries are interested.

He said, "We've noticed a growing demand for our product in Italy and other countries with whom we will likely open markets later this year." (Reporting and editing by Paul Simao; Reporting by Oliver Griffin)

(source: Reuters)