USGC: Peru poultry producer resumes purchases of US DDGS

By U.S. Grains Council | January 11, 2019

A decade since its last purchase of U.S. DDGS, the largest poultry producer in Peru imported U.S. DDGS again following direct engagement by U.S. Grains Council staff in the Western Hemisphere.

The company’s purchase was confirmed the week following a Council-sponsored promotion program in which Central and South American buyers and nutritionists traveled to Mexico to see U.S. feed grains being used firsthand. During the trip, the participants were able to meet with Mexican feed millers who utilize DDGS on a daily basis and get questions and misunderstandings cleared up through industry-to-industry dialogue. Upon return from the program, the head of nutrition, who participated in the trip, confirmed the purchase of 5,000 metric tons of U.S. DDGS, with a value of $1.3 million, for a June shipment. Their feedback was that the Mexican experience was instrumental in their decision to purchase DDGS again.

The company produces 240 million birds per year and is one of the top swine producers in the country. Their previous experience with DDGS was not positive, mainly due to product variability, and they had not been willing to try DDGS again until this outreach.

This was a significant success directly attributable to a Council program and it opens a door for more purchases to take place in Peru. As a country and regional leader, if this company has a positive experience with DDGS usage, not only will additional purchases by them be expected, but other undecided poultry producers in the market may follow.

The Council believes that the Peruvian poultry sector, the largest feed sector in the country, could utilize more than 100,000 metric tons of DDGS per year once industry participants understand the value of the product. The Council is working closely to support the company as their product arrives to ensure that they understand how to use DDGS and to maximize the benefit from the product.

The Council invested $22,887 Market Access Program funds to support the marketing program in Mexico in which the company participated. As a result, DDGS sales worth more than $1.3 million were generated, with a return on investment (ROI) of $56 per $1 of MAP funds invested.