Brazilian corn ethanol producer Inpasa said it will step up shipments of dried distillers grains with solubles (DDGS) to China in the coming months, according to Gustavo Mariano Oliveira, the company’s vice president of trading.
Inpasa annually produces about 3.3 million metric tons of DDGS, the byproduct of corn ethanol operations used widely as animal feed. The company announced that it will soon dispatch its first DDGS consignment to China and already has contracts in place to export an additional 250,000 tons to that market this year.
Looking further ahead, Oliveira said Inpasa could secure cumulative shipments to China of up to 1.5 million tons in 2026. He added that the Asian nation could quickly become the company's principal DDGS buyer, potentially representing up to half of total exports.
"Without a doubt, China should be the main player in a very short time, perhaps accounting for 40% to 50% of our exports," Oliveira said, describing a rapid shift in the firm's export mix toward the Chinese market.
Rapid expansion in Brazil's corn ethanol output - a sector that has recently gained momentum in a market long dominated by sugarcane biofuels - has been accompanied by growing sales of DDGS. Inpasa and other producers have found ready customers for the feed product both within Brazil's beef and meat industries and overseas.
Geopolitical trade developments have also opened commercial opportunities for Brazilian exporters. Oliveira pointed to strained relations between China and the United States as a factor that has helped create space for shipments from Brazil. He noted that last year China authorized imports of Brazilian sorghum at a time when U.S. exports to China declined.
"An opportunity arose from the situation last year," Oliveira said. "It’s a great opportunity, and we see this door that has been opened as one that should remain open in the coming years."
China is not the only destination showing stronger demand for Brazilian DDGS, Oliveira said. Inpasa has observed increasing interest from European buyers, with Spain now the company's largest customer for DDGS.
He added that other European markets are emerging: "We’ve seen a growing appetite from Italy for our product, and from some other countries that we’ll likely open markets with later this year," Oliveira said.
The company’s remarks indicate a reorientation of export flows driven by expanded corn ethanol production and international demand for DDGS in animal feed supply chains. How these contracted and potential shipments to China and Europe ultimately shape Inpasa’s export profile will depend on sustained market access and continued demand from the meat and feed sectors.