Recent information from the Ministry of Commerce website indicates that according to a report released by the U.S. Department of Agriculture's Foreign Agricultural Service (FAS), Brazil's corn ethanol industry has experienced rapid development, leading to a significant increase in corn distillers' grains production (including DDG and DDGS) and a gradual expansion of exports. It is understood that Brazil and China signed a letter of intent in May 2025 aimed at promoting corn distillers' grains exports to China.

“Currently, the market anticipates Brazil will export 1 million tons of corn distillers dried grains to China in 2026, with the first batch of imported Brazilian corn distillers dried grains expected to arrive at Chinese ports in the first quarter of 2026.” Liu Shuwei, a long-time corn and corn distillers' grains trader based in Wuhan, Hubei, told Futures Daily that the entry of Brazilian corn distillers' grains into China's market will become a new fulcrum for Sino-Brazilian grain trade.

In May 2025, relevant authorities from China and Brazil signed the Protocol on Sanitary and Phytosanitary Requirements for the Export of Brazilian Corn Distillers' Grains and Peanut Meal to China, laying the regulatory foundation for Brazilian corn distillers' grains exports to China. Subsequently, relevant authorities issued an announcement clarifying inspection and quarantine criteria, product definitions, enterprise registration requirements, and quarantine standards. The announcement permitted compliant Brazilian corn distillers' dried grains to enter China's market effective immediately. In November 2025, authorities released the first list of approved Brazilian production and processing enterprises authorized to export corn distillers' dried grains to China.

As the world's third-largest corn producer, Brazil's corn output for the 2024/2025 season reached 136 million tons. The country established its first dedicated corn ethanol production facility in 2017. By 2024, Brazil's corn ethanol production had surged from 400 million liters to 7.5 billion liters, with corn used for ethanol production rising from 9.5 million tons to 17 million tons. Against this backdrop, Brazil's corn distillers dried grains (DDGS) output surged from 1.2 million tons in the 2019/2020 season to 4.2 million tons in 2024/2025—a 256% increase—with approximately 79% consumed domestically. While DDGS exports remained minimal from 2017 to 2021, they have expanded steadily since 2022. In 2024, Brazil exported 791,000 metric tons of corn distillers dried grains to 21 countries and regions, generating total export revenue of US$118 million.

Domestic grain and feed processing enterprises widely view the entry of Brazilian corn distillers dried grains into China's market as a landmark event signifying the expansion of Sino-Brazilian grain trade from a single corn category to diversified feed ingredients. Market projections estimate Brazil's corn distillers dried grains exports to China will reach approximately 1 million metric tons by 2026. While the absolute scale remains limited, the introduction of this product category fills the market gap left after the conclusion of Brazil's corn exports to China. This development marks a new phase in Brazil's grain strategy within China, characterized by diversified product offerings and normalized supply. It will serve as a key implementation outcome of China's feed ingredient import diversification strategy, opening new growth opportunities for agricultural trade cooperation between China and Brazil.

Fu Wei, a grain and oil trader in Kaifeng, Henan Province, believes that the entry of Brazilian corn distillers dried grains into China signifies a shift from sole reliance on the United States for protein feed imports toward diversified supply sources. While the short-term impact is minimal, it will gradually reshape the market competition landscape and pricing structure in the long run. Previously, China imported nearly all corn distillers dried grains from the United States. With Brazilian corn distillers dried grains entering the market, a dual-supply pattern of “United States + Brazil” will emerge. Brazilian corn distillers' dried grains possess substantial export potential, offering China's market new supply channels that can significantly mitigate trade risks. Additionally, Brazilian corn distillers' dried grains hold advantages in freight costs and overall expenses. Once a long-term, stable supply arrangement is established between the two countries, it will benefit domestic feed processing enterprises in managing procurement costs effectively. Furthermore, corn distillers' dried grains can serve as a substitute for high-cost protein feeds like soybean meal and rapeseed meal. It is anticipated that imports of Brazilian corn distillers' dried grains will first enter China's southern coastal markets before expanding into inland regions.

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