The ethanol by-product and livestock feed known as distillers dried grains with solubles (DDGS) is now officially recognized as a non-hazardous cargo by the International Maritime Organization (IMO).
The official IMO classification became final and mandatory under the code of the International Maritime Organization on Jan. 1, 2013, after action by the U.S. Grains Council on behalf of its member organizations like the National Corn Growers Association (NCGA).
“While DDGS have effectively been shipped as a non-hazardous cargo for years now, the final classification by the IMO is an important success which will benefit corn farmers across the country,” said NCGA President Pam Johnson. “This status provides additional assurance that DDGS buyers and producers can access the lower freight rates assessed for non-hazardous cargo. U.S. farmers work diligently to ensure at every point in the process that we continue to provide the stable, consistent, quality product that our export markets expect.”
The classification provides savings in the form of lower freight costs which, in turn, increase the return to ethanol plants producing the high quality feed ingredient. Exports of DDGS from the United States have increased tremendously in recent years.