“We are deeply disappointed that China’s Ministry of Commerce has issued a preliminary determination claiming that U.S. dried distillers grains with or without solubles (DDGS) are being dumped and have caused injury to China’s DDGS industry”, the U.S. Grains Council (USGC), Renewable Fuels Association (RFA) and Growth Energy said in a joint statement. China is the world’s biggest buyer of DDGS, with most imports coming from the United States. The move comes after a months-long probe following complaints by China’s ethanol producers that the USA industry was unfairly benefiting from subsidies.
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“We are proud of the role that USA and Chinese DDGS have played in helping China’s animal feed industry to produce high-quality animal feed products to supply China’s rapidly growing meat industry, and in ensuring that Chinese consumers continue to have access to safe, affordable and nutritious protein products”.
Just 10 days after the US announced a trade dispute challenging China’s domestic corn, wheat, and rice price supports, China on Friday announced anti-dumping duties on USA dried distiller’s grains (DDGS).
The two countries are also embroiled in disputes over China’s exports of steel and aluminium.
The preliminary determination comes after an investigation – at the request of Chinese ethanol producers – that determined USA subsidies had “substantially” harmed domestic producers there.
“U.S. DDGS have not caused any injury to China’s DDGS producers”, the groups said.
“We’ve developed strong relationships with Chinese customers. We value their business”, said Neal Kemmet, president of ACE Ethanol in Wisconsin, which is involved in the probe. The U.S.is among the world’s largest exporters of distillers grains.
China did not give a timing for a final decision.
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The earlier investigation slowed China’s imports of the feed ingredient but did not stop them entirely.
