Feed industry left out of the loop
"The investigation has not consulted the feed industry and only represents the interests of some ethanol producers," Liu Yonghao, the chairman of New Hope stated.
According to a report by Reuters, cheap US DDGS imports brought costs down for feed mills last year and China’s investigation which was launched late last year have driven up domestic prices of the by-product, said Liu, a member of the advisory body to the parliament.
US corn prices which are on the increase, have created a situation where Chinese feed mills are not as keen to import corn this year, said Liu. China’s corn imports sky-rocketed to the highest in a decade last year due to limited local supply.
In 2010, China became largest importer of DDGS globally and imported 3.2 million tonnes during that year. That amount equals China’s total domestic production.
DDGS is a by-product of corn-based ethanol used to substitute corn by feed mills.