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BSE signs trade letter with China firm
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Erik Huschitt, general manager of Badger State Ethanol, motions to the adjacent railroad while speaking during a tour of the facility late last week.
SHANGHAI, China and MONROE - In an attempt to increase dairy production in China, at least one animal feed supply corporation in that country, Shanghai DingNiu Feed Company wants to purchase 100,000 to 150,000 tons of distillers dried grains with solubles annually from Wisconsin companies over the next three years.

Badger State Ethanol in Monroe will be one of their main suppliers of DDGS, a by-product of ethanol production that is high in fats and protein.

Shanghai DingNiu Feed Co. specializes in the purchase, production and sales of various types of dairy cow feed, and its subsidiaries have facilities for concentrates mixing, pelleting, puffing and corn flaking.

Erik Huschitt, general manager of Badger State Ethanol, signed a letter of intent with Yu Qian, general manager of Shanghai DingNiu Feed Co., establishing a long-term partnership and cooperation between the two companies.

"Yu Qian has been here and knows our product," Huschitt said.

Huschitt met with Yu Qian in China to sign the letters, while accompanying Gov. Scott Walker on his first overseas trade mission April 13-21. Walker; state Ag Secretary Ben Brancel; and the staff of the Wisconsin Economic Development Corporation worked ahead of the trip to establish several trading partnerships in China, Huschitt said.

"It was an important moment in our relationship," Huschitt said, "as the governors sat down and discussed their needs and our (Wisconsin) products."

Huschitt noted his own visit in Shanghai to the largest dairy farm in China, with 50,000 head of cattle - one of Shanghai DingNiu Feed Company's clients - to gain a sense of the potential to export cattle feed to that country.

"High quality feed is in demand around the world," Huschitt said. The coming trade agreements are going to be "a win-win, especially in the Midwest."

Badger State Ethanol uses about 20 million bushels of corn a year in its ethanol production. It plans to continue to meet the local DDGS feed demands while expanding its markets.

Shanghai DingNiu Feed wants the DDGS in granular form. Huschitt said containers of goods from China will make their return trip filled with DDGS. Trucks filled with corn coming into Badger State Ethanol will haul the DDGS out to local railroads for shipment overseas.