PHOTO: U.S. Grains Council
February 19, 2019
BY U.S. Grains Council
U.S. Grains Council Regional Director for Southeast Asia Manuel Sanchez and Vietnam Country Representative Tran Trong Nghia traveled to a port two hours outside Ho Chi Mihn City last month to witness the discharge of the first bulk vessel of U.S. distiller’s dried grains with solubles (DDGS) sold to the country under fumigation protocol agreed upon in 2017.
Bulk vessels can hold much higher quantities of DDGS than container vessels, so the event marks a positive evolution for imports of DDGS from the United States. This is an important moment for Vietnam and the U.S. grain market because, as the market matures, the country is showing it is committed to utilizing U.S. DDGS in greater quantities.
“Most people in the Vietnamese market believe it would’ve been impossible to make this sale a reality because of how cheap container freight trades from the U.S. Midwest to Southeast Asia,” Sanchez said. “Because we were successful, more customers are considering this form of shipment as a result.”
Advertisement
Advertisement
When the original suspension of DDGS imports occurred in 2016, the Council immediately went to work with both the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service and the Office of the U.S. Trade Representative to find a solution and keep the market open for U.S. products. A new fumigation protocol was agreed to by the two countries in 2017.
The success of a bulk vessel of DDGS arriving under the protocol highlights the impact of U.S. industry partnering with USDA and APHIS to keep markets opened for U.S. exporters as well as the importance of having staff members in local markets who can react quickly and coordinate outreach on the ground.
In 2017/2018, Vietnamese imports of U.S. DDGS more than doubled year-over-year to 1.05 million metric tons, setting a record for DDGS sales in the country, and placing Vietnam as the fourth largest importer of U.S. DDGS for the year.
Advertisement
Advertisement
While there, Sanchez was also able to capture video of the ship-to-shore transfer of the DDGS, available at the Council’s pages on Instagram, Facebook or Flickr.
Read more about the Council’s work in Vietnam.
The U.S. exported 31,160.5 metric tons of biodiesel and biodiesel blends of B30 and greater in May, according to data released by the USDA Foreign Agricultural Service on July 3. Biodiesel imports were 2,226.2 metric tons for the month.
CARB on June 27 announced amendments to the state’s LCFS regulations will take effect beginning on July 1. The amended regulations were approved by the agency in November 2024, but implementation was delayed due to regulatory clarity issues.
Legislation introduced in the California Senate on June 23 aims to cap the price of Low Carbon Fuel Standard credits as part of a larger effort to overhaul the state’s fuel regulations and mitigate rising gas prices.
The government of Brazil on June 25 announced it will increase the mandatory blend of ethanol in gasoline from 27% to 30% and the mandatory blend of biodiesel in diesel from 14% to 15%, effective Aug. 1.
The U.S. EIA reduced its 2025 and 2026 production forecasts for a category of biofuels that includes SAF in its latest Short-Term Energy Outlook, released June 10. The forecast for 2025 renewable diesel production was also revised down.