USGC expands market for US DDGS

By U.S. Grains Council | May 20, 2014

U.S. distiller’s dried grains with solubles (DDGS) have gained popularity in markets around the world, with 9.7 million metric tons – valued at $2.9 billion – exported in 2013 to more than 45 countries. Behind this market expansion are Council-directed and implemented educational seminars and feeding trails, complimented by consistent end-user contact and support. In emerging markets around the world, the Council continues to work to expand the market for U.S. DDGS.

While Mexico is the third-largest market for U.S. DDGS, its southern region remains an underserved livestock sector with growth potential for U.S. exports. According to a 2012 Council assessment, the potential exists to more than double current exports by providing technical and practical education to local cattlemen. To further this effort the Council has conducted a feeding trial in the area.

"The Council's Mexico office will work closely with (end-users in southern Mexico) to ensure understanding and success," said Julio Hernandez, USGC director of Mexico. "We are already working with regional importers to develop a smooth flow of DDGS to the region."

Elsewhere, the Council in August 2011 successfully achieved the inclusion of DDGS and other U.S. commodities on the Saudi Arabian import subsidy list. Inclusion on this list is essential in eliciting interest from Saudi importers of these products.

"With DDGS on the import subsidy list, the Council has undertaken a broad-based effort to educate Saudi feed millers, poultry and livestock producers about this corn co-product," said Cary Sifferath, USGC regional director in the Middle East and Africa. "This bulk shipment of DDGS to ARASCO creates excellent opportunities for future U.S. exports to Saudi Arabia."

This effort paid off when a Saudi Arabian company, ARASCO, purchased a bulk shipment of U.S. DDGS destined to reach Saudi Arabia in January 2014.

And in Southeast Asia, imports of U.S. DDGS have increased again this year, growing from 252,548 tons in January to March 2013 to 352,674 tons in the same period this year, an increase of almost 140 percent. So far this marketing year, Vietnam, Thailand and Indonesia are top 10 importers of U.S. DDGS. Consistent trade and technical education of end-users is being provided by the Council through educational programs (including seminars and visits) to advance corn co-product sales into these growing markets.

From Latin America to the Middle East to Southeast Asia, the Council is working to build value in U.S. corn, sorghum, barley and their co-products. The Council has invested its global efforts to expand alternative markets, allocating more than $1.8 million for the development of U.S. DDGS market globally.