Brazilian plants approved to export sorghum and distillers grains to China
The Brazilian Agriculture Ministry announced on Monday that Brazil had received approval to export dried distillers grains and sorghum to China.
China has given the green light to 10 Brazilian plants for the export of sorghum. Five were also cleared to ship DDG and DDG solubles, which are used in animal feeds, to China.
China is Brazil's largest soybean buyer. It has sought to diversify its animal feed ingredients as well as its sourcing, after a dispute with the United States this year curtailed U.S. Sorghum shipments into the Chinese market.
The ministry reported that China accounted for more than 80 percent of the global sorghum exports which totaled $2.6 billion in 2017.
The ministry said that "with these authorizations Brazil now has regular channels for shipments to world's biggest importer of grain and feed inputs. This improves contract predictability and creates room for increasing export volumes in the coming harvests."
Brazil's corn ethanol production is increasing, and this will increase the production of DDG or corn meal. This is a vital ingredient in animal feed. According to Brazil's Conab crop agency, corn ethanol production is expected to grow by 22.6% during the current season 2025/26.
According to the Agriculture Ministry, Brazil will export more than 790 000 metric tons corn meal by 2024. This is up from 600.000 tons in 2023. The main destination of Brazilian shipments is Vietnam.
The export clearance is a result of the Protocol on Proteins and Grain Derivatives From the Corn Ethanol Industry, signed in May and completion of the phytosanitary certificate model agreed by the authorities in both countries.
A Brazilian Agriculture Ministry official said in September that the first Brazilian sorghum shipment to China may be loaded this year after a Chinese delegation had visited sorghum farmers in early August.
Conab's estimates show that Brazil's sorghum production will grow 8.4% to 6.6 millions tons in 2025/26, following recent gains. Exports were only 200,000 tonnes last year according to ministry data. Sorghum is also a feedstock used in the production of grain-based ethanol. Reporting by Andre Romani, Roberto Samora and Oliver Griffin. Writing by Kyry Madry and Aurora Ellis.
(source: Reuters)
