China DDGS situation: Update

Farm Forum

The situation with U.S. distiller’s dried grains with solubles (DDGS) imports to China continues to evolve on a daily basis. Recent conversations between the U.S. Grains Council and the China Inspection and Quarantine Service suggest a more pro-active stance on the part of CIQ for resolving the status of approximately 90,000 metric tons of U.S. DDGS stranded in Shanghai.

Specifically, CIQ has acknowledged a growing problem and expressed a readiness to work with the trade to facilitate re-export of rejected shipments. This includes assistance with issuance of new phytosanitary certificates and fumigation if required for a new destination. To date, about 1,000 tons have been re-exported from Shanghai.

According to our latest information, new import permits will be issued, but only to companies that have dealt with previously rejected cargoes (i.e., re-exported or destroyed), and only to companies that certify new cargoes will not contain unapproved traits. The Council’s staff continues to work actively with traders to meet the new requirements and facilitate the re-export of stranded DDGS.