Manuel Sanchez, USGC regional director for South and Southeast Asia, was on site as the containers of U.S. DDGS arrived. Photos courtesy of USGC.
“We are glad to see the first shipment and arrival of U.S. DDGS back into the Vietnamese market,” said Manuel Sanchez, U.S. Grains Council (USGC) regional director for South and Southeast Asia. “The council collaborated closely with our own government, the Vietnamese government and industries in both countries to resolve this trade disruption.”
DDGS are a co-product of ethanol production and are used as an ingredient to provide protein and energy in animal feed. Between 2007 and 2016, annual U.S. exports of DDGS worldwide grew from $392 million to $2.16 billion.
The containers were among the first to arrive in Vietnam following the government lifting a suspension put in place in October 2016.
However, following the detection of quarantine pests, the Vietnamese Plant Protection Department (PPD) issued a decision in October 2016 to temporarily suspend DDGS importation. As a result, Vietnam purchased 50% less U.S. DDGS in 2016-17 at nearly 495,000 tonnes, compared to almost 986,000 tonnes the year prior.
The USGC responded with an effort to address concerns and lift the suspension in coordination with the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) and the Office of the U.S. Trade Representative (USTR). The groups worked together to address the Vietnamese government’s concerns and help return open access to one of the fastest growing feed markets in the world.
“Any disruption to the supply chain has a tremendous impact on market price,” Sanchez said. “The arrival of U.S. DDGS on Vietnamese shores signals a return to business as usual, benefitting both the Vietnamese feed sector and U.S. farmers and agribusiness.”