From 2018 to 2023, exports of U.S. DDGS to Korea have reached a mature stage with an average export of 1.2 MMT and an average inclusion rate of 5.7~6.0% in compound feed diets over the past six years, thanks to the Council’s promotion starting as far back as 2004. Recognizing there was not much room for additional growth for DDGS exports, the Council began exploring the opportunity for the new generation of corn co-products being produced by the U.S. ethanol industry. Accordingly, the Council selected Corn Fermented Protein (CFP) products, that have a protein content of more than 50%, are nutritionally competitive with South American soybean meal and can be subject to the same tariff-free rate as existing DDGS due to the conclusion of the Korea-US FTA in 2012, as a promising product that will continuously expand demand for U.S. DDGS.
In 2024, the Council held the U.S. Corn Fermented Protein (CFP) Trade Promotion Seminar in Seoul to provide up-to-date information on CFP products and to support Korean buyers in signing purchase contracts and expanding new demand through one-on-one meetings. In addition, the Council provided opportunities for major DDGS buyers in the feed industry to participate in Export Exchange 2024 to purchase CFP products.
With Agricultural Trade Promotion (ATP) program funding, the Council introduced the advantages of CFP products to the domestic feed industry, making efforts to enter the high-protein feed market for piglets, broilers, and aquaculture feed. In addition, the Council provided information on import and export procedures for CFP products that use a different HS code (2009.90.9000) from the existing DDGS to U.S. suppliers. Korean importers supported the preparation of customs clearance documents and customs clearance procedures, contributing to the smooth clearance of CFP products. As a result, in 2024, approximately 3,500 tons of CFP products were imported for the first time and used as raw materials for piglet and broiler feed.
The Council invested $56,349 in ATP funds to introduce the CFP products into the Korean market in 2024 with an export value of $1.47 million, creating a ROI of $26 per dollar for each $1 of ATP funds invested.