March 24, 2008

Drought may prompt Australian feed millers to import more DDGS from US

The prolonged drought which has curbed the maximum grain production of Australia may cause feed millers to import more distiller's dried grains with solubles (DDGS) from the US, the US Grains Council said.

USCG chairman and a Texas grain producer, Dale Artho, said the action would be necessary to help keep Australia's livestock industries going.

During a USGC tour of Australia, Artho said Australian feed millers have agreed to a feeding trial using imported US DDGS.

Artho noted that the feed millers were specifically looking for some energy and protein for their rations. Since dried distillers grains are cooked, they do not have the problem with weeds or other foreign material being in it, he said.

Australia is also expected to continue importing its bulk grain needs from Argentina, which offers the advantage of lower transportation costs.

The USGC further pointed that despite some rains that helped Argentina's subsoil moisture, grain stocks are still down. It was projected that the country will take some time to fully recover from the drought.