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Brazil Corn Ethanol Exports Surge to China
7 Feb
Summary
- Brazil corn ethanol producer Inpasa plans significant DDGS exports to China.
- China could represent 40-50% of Inpasa's DDGS exports soon.
- Spain is currently Inpasa's largest DDGS buyer, with Europe showing interest.
Brazilian corn ethanol producer Inpasa is poised to significantly boost its exports of dried distillers grains with solubles (DDGS) to China in 2026. Gustavo Mariano Oliveira, vice president of trading at Inpasa, stated that China is expected to become the primary market for DDGS, potentially representing 40% to 50% of the company's exports in the near future. Inpasa produces approximately 3.3 million metric tons of DDGS annually, a byproduct of corn ethanol used in animal feed.
The company has already secured contracts for 250,000 tons of DDGS to China for the current year and forecasts potential shipments of up to 1.5 million tons by 2026. This expansion into the Chinese market is partly attributed to strained relations between China and the U.S., creating an opening for Brazilian agricultural products. Brazil's corn ethanol production has seen rapid growth, moving beyond its traditional sugarcane biofuel dominance.
While China is emerging as a key destination, Inpasa is also experiencing increased demand from Europe. Spain currently leads as the largest buyer of Inpasa's DDGS, with other European nations like Italy showing a growing appetite for the product. The company expects to explore markets in additional countries later this year.
