When China-based Shandong Zhonghui Group Corporation began importing U.S. distiller's dried grains with solubles (DDGS) two years ago, they set in motion a series of actions for what has become an astonishing success story in the U.S. Grains Council's history of marketing DDGS overseas. Two years after first purchasing U.S. DDGS, the Shandong province feed company, located northeast of Beijing, now uses near-maximum levels of the ethanol co-product in its poultry and swine feed rations and plans to increase their current levels.
"Shandong Zhonghui Group has adopted DDGS in their rations as fast as any feed mill we have seen worldwide, pushing the limits in their diets with reasonable regard for feed quality and safety," said Dan Keefe, USGC manager of international operations.
Keefe was recently in China where he met with representatives from the feed company.
"This is an ideal case of market development work. This company attended USGC seminars, experimented with the feed, visited the United States to tour the plant and began buying DDGS in 2008 only to have fully adopted it to near-maximum levels in their rations within two years."
Shangdong Zhonghui Group is one of the largest, single U.S. DDGS importers in China, purchasing 200,000 tons per year with plans to import at least 240,000 tons in the 2010 fiscal year. Keefe said the company has a long-term goal of producing 3 million tons of feed on a yearly basis.
"Within their poultry operations, they are currently feeding DDGS at 6-8 percent inclusion rates and 10-15 percent in their swine feed rations, depending on growth stages," Keefe said. "They would like to increase those rates for poultry use and save money on feed, but are limited by problems related to their use of a domestically constructed pelleting machine."
The Council will work with them to resolve pelleting issues and to support exports of corn to China for all the private sector feed mills and livestock.
The Council is optimistic about the relationship that has formed with Shangdong Zhonghui Group and looks forward to the company's attendance at the 50th Annual Board of Delegates Meeting in Boston, Mass.
