September 2, 2011
BY USGS
In August the U.S. Grains Council conducted a series of workshops in Colombia to promote U.S. distiller’s dried grains with solubles use to the poultry and swine sectors in the country. In four days, the Council delegation visited four different cities to meet with importers, feed millers and livestock producers to promote the potential benefits of using DDGS. Participants included Phillip Smith, a poultry nutritionist with Tyson Food Inc., Gregorio Lanz, a swine nutritionist with Gowans Feed Consulting and Jose Artigas, director of business development for Poet Nutrition.
Colombia is the largest coproducts market in South America, importing 140,000 metric tons in 2010 (74,000 tons of DDGS and 68,500 tons of corn gluten). According to USGC Regional Director in Latin America Kurt Shutlz, however, the market potential for DDGS could be as high as 750,000 tons.
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“Several key developments must occur in order to reach this potential,” said Shultz. “First, approval and implementation of the U.S.-Colombia Free Trade Agreement will remove 10 percent duty on U.S. DDGS. Secondly, the availability of DDGS in the Colombian market must be increased, which will require more USGC member involvement in exporting to Colombia. Finally, the Council must work diligently to make Colombian nutritionists comfortable in using DDGS at high-inclusion rates.”
Council analysis of DDGS in the Colombian market shows the potential of significant prices savings by aggressively formulating with DDGS. “Now the Council needs to educate Colombian end-users so they can capitalize on these savings,” he said.
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This fall there will be chances to promote DDGS at USGC “Buyers” Conferences to be held in Panama City, Panama, on Oct. 18-21 and in Geneva, Switzerland, on Nov. 12-14, 2011.
The events will focus on buyers and will include specific themes geared for trade servicing and networking. Topics to be addressed include a current industry overview and product profiles, transportation, product management and actual value of the product for end-users. The two conferences provide a prime venue for U.S. DDGS producers and suppliers to meet some of the top importers and largest end-users of U.S. DDGS in Latin America at the Panama event. The Geneva event is geared to businesses within the North Africa and Middle East countries.
The Council has been actively promoting DDGS in these regions. The United States has experienced significant growth of DDGS exports to these markets, all indications point toward continued growth.