South Korea: The Use of DDGS In The Korean Market: Onwards and Upwards

Distiller’s dried grains with solubles (DDGS) are a byproduct of corn ethanol production. This derivative is primarily used in compound animal feeds as a vegetable based protein. Because of its high protein and favorable price spread against its substitutes, soybean meal and corn gluten feed, it has been adopted by 96% of Korean feed millers. Korean imports have increased from 656,307 MT in Marketing Year (MY) 2014/15 (Oct. /Sep.) to 894,982 MT in MY 2015/16 (Oct./Sep.). The United States has held an 89% or higher market share since MY 2008/09 (Oct. /Sep.). The DDGS inclusion rate increased from 3.4% in MY 2014/15 to 4% in MY 2015/16. It is expected that this rate will continue to increase due to DDGS’ favorable price spread. The U.S. Grains Council/Seoul set a target of 7.5% inclusion rate and 1.5 million MT of imports per annum in Korea by 2025.

South Korea: The Use of DDGS In The Korean Market: Onwards and Upwards