USGC helps Indonesian poultry farmers increase DDGS purchases

By U.S. Grains Council | July 22, 2022

The resurgence of COVID-19 in Southeast Asia and related restrictions presented many constraints for the U.S. Grains Council’s in-person programming in 2021. Nevertheless, the Council remained committed to maximizing distillers dried grains with solubles (DDGS) inclusion rates in both layer and broiler rations by educating Indonesian buyers on the animal health benefits that DDGS provides and the cost savings for producers.

In the MY 2020/2021, Indonesia was Southeast Asia’s second-largest importer of U.S.- origin DDGS at 910 TMT. Recognizing there was room for additional growth in DDGS demand, the Council conducted a series of feed formulation training targeting Indonesian poultry farmers, covering topics relating to layer farms and the benefits of incorporating DDGS in feed rations.

The series discussed the technicalities of feed formulations in West Sumatra and how DDGS improves animal performance and reduces feed costs. A revised poultry feed formulation, including DDGS introduced by the Council’s regional technical consultant, reduced overall feed costs for local growers by five to six percent. As a result, one farmer in attendance fully adopted the revised formula, increasing demand for DDGS by 10 TMT per year, successfully lowering overall costs while improving egg production on his farm.

Another feed formulation training was conducted in Blitar, East Java, drawing an audience of more than 20 poultry farmers. The Council’s consultant provided information on feed formula revisions with the potential to reduce farmers’ existing feed costs by at least three percent, resulting in an additional 7 TMT of DDGS demand per year.

This program highlights the importance of continuing to educate farmers on the commercial advantages of DDGS while remaining flexible in adjusting feed formulations to reduce costs when necessary. The Council is well-positioned to keep its Indonesian buyers informed and educated on the latest benefits of adopting DDGS as an alternative feed ingredient and efficient cost-saving instrument.

The Council invested $1,500 of Market Access Program (MAP) funds to support this engagement. As a result, participants increased purchases of DDGS by 17 TMT, valued at $4.1 million dollars, which results in a return on investment of $2,700 per $1 of MAP funds invested.