Japan-Inreased demand for Brewers grain.

JAPAN-BREWERS GRAIN.

January 2009 proved to be a strong start to the calendar year for U.S. exports of distiller’s dried grains with solubles (DDGS).

Over the last five years, the Japanese market for DDGS has grown at a rapid rate, according to the Japanese Ministry of Finance. The United States held 91 percent of the overall market share in 2008. The pace has been set for 2009, with the Ministry recording 15,654 metric tons imported in the month of January. This equates to 85 percent of the country’s total imports for the month.

In 2004, total DDGS imported by Japan was 14,999 tons. For the next three years the market increased to 118,190 tons in 2007. The following year, the quantity more than doubled to 238,457 tons of total DDGS imported, of which 216,499 tons were from the United States.

According to Hiroko Sakashita, USGC associate director in Japan, projections indicate a total of 300,000 tons of DDGS will be imported in 2009, dependent upon the price compared to other feed ingredients. Canada and China also export DDGS to Japan, but do not have the same stable, consistent supply as the United States.

"As ocean freight rates settle at a reasonable level, bulk shipments will steadily grow in DDGS exports," said Sakashita, attributing part of the increase of DDGS quantities imported to the efficiency of bulk shipments.

The Council introduced DDGS to the Japanese feed and livestock industry in 2002. Since then, the Council has conducted feeding trials, seminars, workshops and brought study teams to the United States to educate on and promote the use of DDGS.

"Those detailed activities contributed to the steady growth of use in Japan by the feed millers and livestock producers," said Sakashita. Though the data is not in yet, it appears February will record similar high quantities of imports as January.

Source: U.S. Grains Council