May 7, 2012

China requests DDGs buyers to report foreign buys

The commerce ministry of China is intensifying import reporting requirements to cover local distiller's dried grains (DDGs) buyers, as Beijing aims to monitor the soaring imports of its main agricultural products.

From June 1, importers of DDGs must report contracted import volumes, origins and arrival times twice a month, according to a statement posted on the ministry's website (www.mofcom.gov.cn).

The ministry in 2008 began requiring such advance reporting for import contracts, starting with soy, rapeseed and edible oils. It said at the time that the data would help those in the market better gauge import demand.

DDGs, a by-product of corn-based ethanol, have found a ready market in China, the world's largest meat consumer. DDGs are used by feed mills as a substitute for corn.

China imports almost all its DDGs from the US.

Last year, Chinese imports declined by 47%, but imports are again on the rise. March arrivals were up 17.5% from the year-ago period to 204,281 tonnes.

The ministry late last year extended an anti-dumping probe on imports of US DDGs, threatening trade that has grown massively in 2009 and 2010, when China became the world's largest importer.

Industry sources said the ministry may withdraw the investigation next month because China's own production cannot meet its demand.