Brazil ships DDGS to Vietnam, exports rise as corn ethanol production booms

A cargo of distiller’s dried grains with solubles (DDGS) left Brazil’s port of Paranagua on Monday, as shipping of the livestock feed ingredient becomes more frequent after Brazilian companies started producing ethanol from corn.

A vessel carrying about 55,000 tonnes of DDGS set sail at 1 a.m. local time (0400 GMT) headed to Vietnam, the Paranagua port authority said.

DDGS is a nutrient-rich co-product of corn ethanol production, and a likely rise in Brazilian exports reflects higher corn-based ethanol production domestically.

Brazilian corn ethanol output is estimated at 4.5 billion liters in the 2022/2023 season, up 31% from the last, according to industry group Unem.

Corn ethanol will account for an estimated 15% of overall ethanol output in Brazil if that projection is confirmed, Unem data showed. Most of Brazil’s ethanol still comes from sugarcane.

Monday’s shipment is the third DDGS consignment out of Paranagua ever, the port authority said. Two previous cargoes went to the United Kingdom and Turkey.

Corn

The first report of a Brazilian DDGS shipment was in 2019 when 27,000 tonnes were shipped via Paranagua, according to data from Brazil’s waterway transport agency Antaq compiled by the port authority.

In the following year, two cargos totaling 56,251 tonnes were sent from Paranagua and Santos port, the data showed. In 2021, almost 118,000 tonnes were shipped from private ports in Sergipe and Amazonas, according to the same data set.

In the seven months of 2022, and not including Monday’s cargo, about 101,400 tonnes of DDGS were shipped mainly through Imbituba, a port in Santa Catarina state, the Paranagua port authority said.

Source: Reuters

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