The article highlights a significant increase in the export of Distillery Dried Grains with Solubles (DDGS), a by-product of ethanol production, which is being increasingly used in the animal husbandry sector. Despite this growth, there are concerns over the declining export prices for DDGS, which is affecting the industry. Below are the key points and signs of this trend:
Rising Exports of DDGS:
- The export volume of maize-based DDGS has seen a dramatic rise, from 30 tonnes in 2022 to 2,87,593 tonnes in 2024.
- Similarly, rice-based DDGS exports have increased, from 12,064 tonnes in 2022 to 60,296 tonnes in 2024, though still lagging behind maize DDGS exports.
Maize Demand for Ethanol Production:
- The growth in DDGS exports is largely driven by the increased use of maize in ethanol production, which has surged in the last two years. This trend is expected to continue in 2025, resulting in higher production and exportable stocks of DDGS.
Declining Export Prices:
- The average export price for maize DDGS fell from $239 per tonne in 2022 to $220 per tonne in 2024, despite the significant increase in export volumes.
- Rice DDGS has seen a similar price drop, from $435 per tonne in 2022 to $324 per tonne in 2024.
- Although maize DDGS had a peak price of $296 per tonne in 2023, both rice and maize DDGS have experienced a reduction in their offer prices over the years.
Impact on Industry:
- The decline in DDGS prices, particularly for maize, is concerning for the industry, as it is counteracting the benefits of increased export volumes. While exports are growing, the lower prices could lead to reduced revenue for producers.
In conclusion, while there is a significant increase in the exports of DDGS, especially from maize and rice, the falling export prices present a challenge for the industry, which will need to adapt to the new pricing trends while meeting growing demand from sectors like animal husbandry.