China Turns Away U.S. Distillers Grains

China Turns Away U.S. Distillers Grains


Beijing, China: (Dec. 26, 2013) – China has turned away about 2000 tons of U.S. dried distillers grains (DDGs), and more rejections are expected in the coming weeks as Beijing imposes strict checks over an unapproved genetically-modified strain.

The move was widely expected following China’s rejection of more than half a million tons of U.S. corn after authorities detected the presence of an insect-resistant strain of corn developed by Syngenta and not approved for import by China’s ag ministry.

Traders had been fretting about possible DDG rejections after earlier saying that the strain, already approved by Japan, South Korea and the European Union, had been found in shipments of the corn ethanol by-product.

One trader said the new situation with China came on quickly. “Before, (Chinese) authorities were just checking on selective shipments, but now all shipments will have to be tested and a large volume may be turned away,” he said.

China is the world’s top market for U.S. DDGs, accounting for 40 percent of U.S. exports during the 2012/13 marketing season.

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