Finding Value In Chinese Distillers Grains (CDG)

Chinese distillers grains, commonly referred to in technical and commercial contexts as Chinese distillers dried grains (CDG) with solubles (DDGS) or, more broadly, distillers grains (DG), are a major co-product of China’s large-scale alcohol and bio-fermentation industries. They arise primarily from the production of traditional grain-based spirits (baijiu), fuel ethanol, industrial alcohol, and certain fermentation-derived chemicals. Because China is both the world’s largest producer and consumer of grain-based distilled spirits and a leading producer of fuel ethanol, distillers grains constitute an abundant, economically significant, and increasingly scrutinized biomass resource within the country’s agro-industrial system.
The annual output is approx. 20 million tons. It is thus a relatively cheap and available material for solid-state fermentation. In 2025, the price was $14/ton.

At their core, distillers grains are what remain after starch in cereal grains has been converted into fermentable sugars and subsequently into ethanol. In China, the dominant raw materials include corn, sorghum, wheat, rice, cassava, and mixtures of grains depending on region and product. During fermentation, yeast and associated microorganisms metabolize most of the starch fraction, leaving behind protein, fiber, oil, minerals, and residual fermentation products. These components are concentrated relative to the original grain, typically by a factor of about three on a dry matter basis. This concentration effect is the fundamental reason distillers grains have nutritional and economic value, particularly as animal feed.

The Chinese context gives distillers grains several distinctive characteristics compared with their counterparts in North America or Europe. One of the most important differences lies in the diversity of fermentation systems. In fuel ethanol plants, especially those based on corn, the process is broadly similar to that used in the United States, producing wet distillers grains (WDG), dried distillers grains (DDG), or DDGS after the addition of condensed distillers solubles. However, a substantial proportion of Chinese distillers grains originates from traditional solid-state fermentation used in baijiu production. In this process, crushed or cooked grains are fermented in pits or cellars with complex microbial consortia dominated by molds, yeasts, and bacteria, using fermentation starters known as qu or jiuqu. The resulting distillers grains from baijiu production, often called baijiu zao or jiuzao, differ markedly in composition, moisture content, particle size, and microbial residues from liquid-fermentation ethanol by-products.

From a compositional perspective, Chinese distillers grains are rich in crude protein (17%), neutral detergent fiber, acid detergent fiber, ether extract (oil), phosphorus, and various micronutrients. Typical corn-based DDGS in China may contain 26–30 percent crude protein, 8–12 percent fat, and significant amounts of digestible phosphorus, largely in non-phytate form due to phytase activity during fermentation. Baijiu distillers grains, by contrast, often have lower fat content and higher fiber, reflecting both the grain mix used and the solid-state fermentation process. They also contain a wide array of organic acids, residual sugars, amino acids, and microbial biomass, which can influence palatability and digestibility in animal diets.

Historically, the primary use of Chinese distillers grains has been as livestock feed, particularly for ruminants such as cattle and sheep. Their high protein content and favorable amino acid profile make them a valuable substitute for soybean meal and other protein concentrates, especially in regions where feed costs are high or protein meals are imported. Wet distillers grains are often fed locally near production sites due to their high moisture content and limited shelf life, while dried forms are transported longer distances and incorporated into compound feeds. In dairy production systems, distillers grains are valued for their rumen-undegradable protein fraction and energy contribution, although careful ration balancing is required to manage sulfur levels and fiber digestibility.

In swine and poultry feeding, Chinese distillers grains are used more cautiously. While DDGS can be included at moderate levels in pig and poultry diets, high fiber content, variable quality, and potential anti-nutritional factors limit inclusion rates. Advances in feed formulation, enzyme supplementation, and quality control have gradually expanded their use in monogastric diets in China, particularly in large-scale, technologically advanced operations. Nonetheless, ruminant feeding remains the dominant outlet, especially for baijiu-derived distillers grains.

Beyond feed applications, Chinese distillers grains are increasingly viewed through the lens of resource efficiency and environmental management. The rapid expansion of ethanol and baijiu production in recent decades has generated enormous volumes of high-moisture organic residues. Improper disposal can lead to serious environmental problems, including water pollution, odor emissions, and greenhouse gas release. As a result, national and provincial authorities have promoted the “resource utilization” of distillers grains, encouraging their conversion into feed, organic fertilizer, biogas, or other value-added products.

One important pathway is anaerobic digestion. Distillers grains, particularly those with high moisture content, are suitable substrates for biogas production due to their organic matter content and biodegradability. In integrated agro-industrial systems, biogas plants process distillers grains to produce methane for heat and power, while the digestate is used as fertilizer. This approach reduces waste, recovers energy, and closes nutrient loops, aligning with China’s broader circular economy and rural revitalization policies.

Another emerging application is the use of distillers grains as a substrate for further biotechnological processing. Researchers and enterprises have explored extracting functional components such as proteins, peptides, dietary fiber, and phenolic compounds from distillers grains. There is also interest in using them as feedstock for producing single-cell protein, organic acids, enzymes, or bio-based materials. While most of these applications remain at pilot or early commercial stages, they reflect a growing recognition that distillers grains are not merely low-value residues but complex bio-resources.

Quality variability is a persistent issue in the Chinese distillers grains sector. Variations in raw materials, fermentation conditions, drying technology, and solubles addition can lead to significant differences in nutrient composition, mycotoxin levels, color, and flowability. In baijiu production, seasonal production cycles and traditional practices further increase heterogeneity. This variability complicates feed formulation and undermines user confidence, particularly among large-scale feed mills. In response, industry standards, improved analytical methods, and better process control are gradually being implemented, though standardization remains less advanced than in some Western markets.

Mycotoxin contamination is another concern, especially in corn-based distillers grains. Because mycotoxins present in raw grain can be concentrated during fermentation, DDGS may contain higher levels of deoxynivalenol, zearalenone, or fumonisins than the original grain. Chinese researchers and regulators have devoted increasing attention to monitoring and mitigating these risks through raw material screening, improved storage, and detoxification technologies. This issue is particularly important given the large scale of livestock production and the potential implications for food safety.

From an economic standpoint, distillers grains play a strategic role in China’s feed and grain balance. By converting grain starch into ethanol or spirits while retaining most of the protein and other nutrients in co-products, distillation effectively increases the efficiency of grain utilization. In a country with limited arable land and strong demand for animal protein, this co-product value helps justify and sustain fermentation industries. Price relationships between distillers grains, soybean meal, corn, and other feeds influence their market penetration and regional trade flows.

Regionally, the distribution and utilization of Chinese distillers grains reflect the geography of fermentation industries. Major corn ethanol producers are concentrated in northeastern and northern provinces, while baijiu production is widespread but particularly prominent in provinces such as Sichuan, Guizhou, Anhui, and Henan. In these areas, distillers grains are deeply embedded in local livestock systems, sometimes forming the backbone of cattle feeding operations clustered around distilleries. Such industrial symbiosis reduces transportation costs and fosters localized feed economies.

Looking ahead, the future of Chinese distillers grains will be shaped by policy, technology, and market dynamics. Environmental regulations are likely to become stricter, increasing pressure on distilleries to manage by-products responsibly and efficiently. Advances in drying, fractionation, and fermentation technologies may improve product consistency and unlock higher-value uses. At the same time, shifts in China’s ethanol policy, alcohol consumption patterns, and livestock sector structure will influence the volume and form of distillers grains produced.

In sum, Chinese distillers grains occupy a complex and evolving position at the intersection of agriculture, industry, and environmental management. They are simultaneously a feed resource, a waste management challenge, and a potential platform for bio-based innovation. Understanding their origin, composition, uses, and constraints is essential for assessing the sustainability and resilience of China’s grain processing and livestock systems.

Visited 3 times, 1 visit(s) today

Be the first to comment

Leave a Reply

Your email address will not be published.


*


This site uses Akismet to reduce spam. Learn how your comment data is processed.