USGC engagement helps increase DDGS sales in the Philippines

By U.S. Grains Council | May 20, 2022

Two technical webinars in July 2020 expanded the U.S. Grains Council’s engagement and future export opportunities for U.S. distillers dried grains with solubles (DDGS) into the Philippines.

2020 was a challenging year for feed grain sales into Southeast Asia, including the Philippines. Nationwide lockdowns, lack of tourism, container shortages, and new trade agreements signed between major markets and U.S. competitors were pointing to drastically reduced projected sales into the region.

The Council decided to combat these headwinds with a series of Tech Talk webinars to salvage demand during these trying times. The DDGS Tech Talk series focused on trade policy and challenges and opportunities in the region, including storage and nutritional performance. The talks were conducted in partnership with PAFMI (the Philippine Feed Mill Association), with the
technical staff of PAFMI member companies joining the webinar. PAFMI members represent the largest segment of the Philippine feed industry, making this partnership critical to expanding trade relationships in the country.

Through this outreach, the Council was able to successfully address the top constraints to increased DDGS usage in the Philippines: storage, handling, and nutritional awareness. At the end of each webinar, nutritionists and traders were able to ask company-specific questions. After all technical constraints were addressed and follow-up engagements were scheduled, the Council handed out USGC member supplier lists so customers could contact and execute purchases.

The market in the Philippines is relatively consolidated, and the participating companies increased DDGS usage following the webinar series. Feedback was gathered that the information provided enabled participants to plan better in their storage warehouses, assign proper value to DDGS in their rations, and most of all, feel more confident in USGC member suppliers. These additional purchases led to an increase of 21,835 MT of DDGS usage even while overall feed production retracted more than 20 percent in 2020 due to factors including Covid-19 and ASF.

The Council invested $4,905 in Market Access Program (MAP) funds to support this virtual webinar series. As a result, webinar participants increased purchases of DDGS by 21,835 MT, valued at $4.60 million, which results in a return on investment (ROI) of $938 per $1 of MAP funds invested.