Ethanol Blog

China Pork Shortage Spurs Vietnamese Demand for U.S. DDGS

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

A pork shortage in China is affecting markets in many countries, but especially in Vietnam, according to an article by the U.S. Grains Council (http://bit.ly/…). As a result, the high Vietnamese demand is spurring record pork prices, as well as a surge in the country's demand for U.S. distillers dried grains with solubles.

The primary protein source in Vietnam is pork, with the country consuming nearly 66 kilograms per capita, much higher than the nearly 50 pounds per capita in the U.S., writes Kevin Roepke, U.S. Grains Council Regional Director for South and Southeast Asia.

With increased environmental regulations, sow herd cullings and poor piglet survival rates, China has been forced to import growing amounts of pork, including an estimated 100,000 metric tons a month, primarily from Europe. The U.S. is also benefiting from China's need for pork, as pork exports to China as of May 19 totaled 68,300 metric tons, more than three times the amount during the same period in 2015.

With hog margins in Vietnam rising as much as $100 per head, Vietnamese hog producers are benefitting from the increase, which is fueling increases in imports of U.S. DDGS. In fact, Vietnam's first quarter imports of DDGS are approximately 26% higher than last year.

The council is assisting DDGS demand by promoting higher inclusions of U.S. DDGS in swine diets to Vietnamese producers, as well as encouraging pelleters to include levels of DDGS as high as possible in feed pellets.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.

(CZ)

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