China’s Ministry of Commerce (MOFCOM) has initiated anti-dumping countervailing duty investigations into U.S. produced distillers dried grains with solubles (DDGS) exported to the country. Both the ethanol industry and the grains industry expressed concern over the announcement.

U.S. Grains Council President and CEO Tom Sleight responded by saying, “We are disappointed to see today the initiation of anti-dumping and countervailing duties investigations of U.S. DDGS exports to China. We believe the allegations by the Chinese petitioners are unwarranted and unhelpful. They could have negative effects on U.S. ethanol and DDGS producers, as well as on Chinese consumers, potentially over a period of many years. We are also confident that our trading practices for DDGS, ethanol and all coarse grains and related products are fair throughout the world. We stand ready to cooperate fully with these investigations and will be working closely with our members to coordinate the U.S. industry response.

“The U.S. Grains Council has worked in China since 1981 to find solutions to the challenges of food security through development and trade. There have been measureable positive effects of this work for the Chinese feed and livestock industries and Chinese consumers. We and our members will work vigorously in the coming months to demonstrate that the allegations being investigated by MOFCOM are false, even while we continue to stand ready to expand our cooperation with China on agricultural issues of mutual benefit.”

This is not the first time that China has been down this road. Back in 2011 China began an investigation into DDGs but then in 2012, they dropped it. Now, in 2015, they have re-begun the process.

Tom Buis, co-chair of Growth Energy, weighed in with a statement noting his dissatisfaction with the allegations. “We are disappointed to see the initiation of anti-dumping and countervailing duties cases against U.S. DDGS exports to China. The false allegations by the Chinese petitioners have the potential to seriously threaten our largest overseas market for DDGS and could have a significant impact on the supply, demand and price for DDGS in the U.S. and other foreign markets. We are working closely with our members and the U.S. Grains Council as it coordinates an industry response.”