Peruvian poultry producer imports U. DDGS for the first time

By U.S. Grains Council | December 06, 2018

For the last 10 years, no poultry producer in Peru has imported or used U.S. DDGS. The U.S. Grains Council believes that the Peruvian poultry sector—the largest feed sector in the country—could use 100,000 metric tons of DDGS per year once with a full understanding of the product. With this in mind, the Council has been promoting the use of U.S. DDGS to the poultry sector, including by demonstrating how other countries are using the product and benefiting from it.

One of the top four poultry companies in the nation produces around 14,000 metric tons of feed per month (168,000 metric tons/year), with 90 percent used for poultry and the remaining for swine. The Council identified the company as a potential importer and began a series of marketing and technical follow-up programs with their staff to highlight the potential economic benefits of using DDGS.

In April 2017, purchasing staff expressed interest in importing DDGS and asked for technical assistance from the Council before doing so. The Council provided technical assistance for both, emphasizing use of DDGS in both poultry and swine diets. For swine, the Council hired a nutritionist to participate in the Ibearoamerican Swine Conference in Lima in July and to meet with the company’s nutritionist for private consultations. In August, purchasing and nutrition staff were invited to attend the Regional Nutrition Conference, again in Lima, to learn about DDGS usage in poultry diets.

In August of the 2016/2017 marketing year, the company bought its first shipment of more than 4,000 metric tons. Other poultry producers have followed this purchase closely and are openly considering purchasing DDGS also. The Council is hoping to use the successful trial of DDGS as a model and eventually expand use of the product to the rest of the poultry sector. If successful, Peruvian poultry producers could use approximately 100,000 metric tons of DDGS per year.

The Council invested $11,840 Market Access Program (MAP) funds to support this marketing program, resulting in sales worth $700,000 and a return on investment (ROI) of $59 per $1 of MAP funds invested.