Search Site   
Current News Stories
Solar eclipse, new moon coming April 8
Mystery illness affecting dairy cattle in Texas Panhandle
Teach others to live sustainably
Gun safety begins early
Hard-cooked eggs recipes great for Easter, anytime
Michigan carrot producers to vote on program continuation
Suggestions to celebrate 50th wedding anniversary
USDA finalizes new ‘Product of the USA’ labeling rule 
U.S. weather outlooks currently favoring early planting season
Weaver Popcorn Hybrids expanding and moving to new facility
Role of women in agriculture changing Hoosier dairy farmer says
   
News Articles
Search News  
   
China begins investigation in alleged DDGS ‘dumping’

 
By MATTHEW D. ERNST
Missouri Correspondent

ST. LOUIS, Mo. — Rumor turned real last week when China’s Ministry of Commerce, or MOFCOM, announced anti-dumping and countervailing duty investigations into U.S. dried distiller’s grains with or without soluble (DDGS).
The anticipated investigation will not halt exports of DDGS to China. Firms which register to cooperate with the investigation, within 20 days of the Jan. 12 MOFCOM announcement, will be allowed to continue exporting.
“We expect a number of companies will register,” said Jim Miller, vice president and chief economist of Growth Energy, a Washington, D.C.-based group supporting ethanol.
The investigation is not unprecedented. MOFCOM launched an anti-dumping investigation into U.S. DDGS in 2011, in response to complaints from China’s ethanol industry, according to a November 2015 USDA report. That investigation, which was opposed by China’s feed industry, was dropped.
This time, MOFCOM will expand the investigation scope. “It’s slightly different than past (2011) claims,” said Jim Miller.
The difference is a second area of investigation, beyond anti-dumping claims. The China Alcoholic Drinks Assoc., which filed the case with MOFCOM, claims 42 cases of U.S. federal and state government subsidies giving U.S. firms competitive advantages for DDGS, a byproduct of ethanol production.
There are 10 federal programs on the list, published in the notice of investigation on the MOFCOM website. They range from crop insurance and price loss protection to federal tax relief for small fuel ethanol businesses.
The 32 programs are listed for 20 different states. The list includes 11 programs in this region: five programs in Illinois, three in Iowa, two in Kentucky and “Indiana tax relief for ethanol production.”
U.S. feed and ethanol interests disputed the allegations but committed to work toward resolution. “We believe the allegations by the Chinese petitioners are unwarranted and unhelpful,” said Tom Sleight, U.S. Grains Council CEO.
“We and our members will work vigorously in the coming months to demonstrate that the allegations being investigated by MOFCOM are false, even while we continue to stand ready to expand our cooperation with China on agricultural issues of mutual benefit.”
Countries regularly investigate claims of dumping, or selling product below production costs at a disadvantage to domestic producers. The results can be an anti-dumping duty (or tariff) placed upon that good.
The MOFCOM countervailing duty investigation is for the most recent trade year, from Oct. 1, 2014-Sept. 30, 2015. The period for industry injury investigation is from Jan. 1, 2012-Sept. 30, 2015.
China expanded imports of U.S. brewers’ and distillers’ dregs and waste in the 2009/10 trade year, when total volume increased some 22 times over, from 98,000 to 2.176 million metric tons. Most of that increase came from DDGS.
China again expanded DDGS imports from the United States in 2013/14, as prices fell and China banned U.S. corn shipments, citing concerns tied to biotechnology traits. U.S. DDGS exports rose to 4.4 million metric tons during 2013/14.
3/2/2016