Brazil Prepares to Expand DDGS Feed Additive Exports Through New Trade Agreements
The corn ethanol production industry in Brazil is actively developing, contributing to the growth of production volumes of dried distillers grains with soluble additives (DDGS). The Mato Grosso region is particularly significant, where producers and local authorities collaborate to enter new international markets and strengthen positions in global trade for this product.
This is reported by AgroReview
Currently, Brazil exports DDGS to 18 countries worldwide, 14 of which have recently opened their markets to this product. Among them are Mexico, the United Kingdom, Canada, and Vietnam. Minister of Agriculture and Livestock Carlos Favaro emphasizes:
“We are moving forward, aiming to open the Chinese market and ensure greater stability in this sector”
.
Future Trade Agreements and Export Development
Although China remains the main importer of DDGS, it has yet to import this product from Brazil due to the lack of a bilateral sanitary agreement. However, as part of broader trade and economic efforts, the Brazilian government signed a relevant agreement on April 22 during a bilateral meeting between Trade Minister Luis Rua and China’s Deputy Minister Liu Weihong. This is part of a strategic policy to deepen trade ties with China, particularly regarding fish exports and expanding the list of Brazilian meat processing plants authorized for export to this country.
Additionally, the Brazilian government is developing new quality control standards for DDGS exports, which will better meet importer requirements. Ugo Caruso, Director of the Department of Plant Product Inspection, stated:
“Consultations will take place soon, and after they are completed, new rules will be published”
. This is an important step towards opening markets that require high certification standards.
Strategic Prospects and Global Markets
In the context of tensions between the U.S. and China, Brazilian officials see potential for expanding market opportunities and reducing dependence on American suppliers. Representatives of the American industry emphasize positive prospects in the region, particularly in Asian countries such as South Korea and Vietnam, where Brazil is already actively competing on price. If China begins to import more Brazilian DDGS, it could relieve pressure on American exporters and open new opportunities for other markets.
Forecasts indicate that in the 2024/25 season, corn ethanol production in Brazil will reach 4 million tons, a 30% increase from the previous season, with export volumes potentially ranging from 800,000 to 1 million tons. This confirms Brazil’s growing role as a global supplier of feed additives and ethanol.
In the Mato Grosso region, efforts are intensifying to establish bilateral partnerships. For instance, the Chinese agribusiness giant Donlink visited this region on April 13, signing three memorandums with local organizations, which may facilitate the opening of the Chinese market for Brazilian DDGS. “We are working to create conditions for opening the DDGS market and strengthening the corn ethanol value chain”, noted BIOIND CEO Giuseppe Lobo.
These efforts occur against the backdrop of increasing corn ethanol production in Brazil, which has traditionally relied on sugarcane. In recent years, new projects for corn-based ethanol production have been initiated, allowing the country to strengthen its position in the global energy resources and feed additives market.