Record milk production in New Zealand has led the nation to triple the amount of imported U.S. distiller’s dried grains with solubles. The U.S. Grains Council reports that the 2017 milk supply in New Zealand is expected to reach 21.9 million tons, surpassing the prior record of 2014, thanks to higher-expected cow numbers and optimal pasture conditions. With further opening of the market for U.S. exports, the Grains Council says grain buyers significantly increased purchases due to local crop failures and local market limitations. New Zealand has purchased 113,000 metric tons of U.S. DDGS in the 2016/2017 marketing year, up significantly from the 37,000 tons imported the same time the year prior. The Grains Council says that while this market is currently small, these sales represent the potential for demand growth.
A spokesperson with USGC says, “We expect to see strong demand for U.S. DDGS into this market in coming years.”
Source: NAFB News Service