USGC programs stabilize DDGS exports in Mexico

By U.S. Grains Council | April 13, 2022

In 2020, pandemic restrictions prompted the Council to redesign its promotion approach in Southeast Mexico because our DDGS feeding trials could not take place in person. The Council utilized targeted WhatsApp communication and mobile accessible Zoom meetings to present market conditions and DDGS availability updates to feed companies (Council MOU partners) to help them mitigate price spikes due to ethanol plant shutdowns and facilitate the return of U.S. DDGS exports into the region.

Our MOU partners managed to sell 6,052 MT of U.S. DDGS in 2020, valued at $1.5 million, which was lower than our expectations projected in 2019. However, considering the price and availability challenges, the Council efforts ensured that sales took place that may not have otherwise occurred.

Total purchases made to this region reached 246,863 MT through the ports of
Coatzacoalcos, Veracruz, and Tuxpan. Specifically, we saw DDGS entries grow in the Veracruz Port from 6,000 MT in 2019 to 62,636 MT in 2020,
primarily by Feed Derivatives & Grains (FDG) and Archer Daniels Midland (ADM). The Council contributed to this success by inviting FDG to our
DDGS trial programs in 2019, where they gained valuable supply contacts at ADM and access to local marketers who distributed the DDGS in the region.

The Council invested $30,000 of MAP funds in targeted programming in 2020 focused on building confidence in the U.S. supply with FDG and other DDGS distributers. Therefore, ROI can be calculated at $49 per every MAP US$1 invested.