China asks distillers dry grains’ buyers to report imports

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Published: May 14, 2012

beijing / reuters /China’s Commerce Ministry is expanding import reporting requirements to cover domestic buyers of the feed ingredient, distillers dried grains (DDGs), as Beijing aims to monitor its surging imports of major farm 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 soybeans, rapeseed and edible oils. It said at the time that the data would help those in the market better gauge import demand.

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DDGs, a byproduct 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 United States. Last year, Chinese imports declined by 47 per cent, but imports are again on the rise. March arrivals were up 17.5 per cent from the year-ago period to 204,281 tonnes.

The ministry late last year extended an anti-dumping probe on imports of U.S. 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.

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