The US Grains Council (USGC) announced on Thursday (March 25) that Canada's demand for US distiller's dried grains with solubles (DDGS) continues to increase.

Last year, Canada imported approximately 804,000 tonnes of US DDGS, according to USGC. Industry experts anticipate more volumes to be traded in 2010. Much of this growth can be attributed to greater awareness about the product. Canada is the second largest export market for US DDGS, the council said.

"The Canadian livestock producer has more information today on the chemistry, use and economics of DDGS," said Ryan Slozka of Rycom Trading Ltd. and a USGC member.

Three to four years ago, Canadian livestock producers were feeding a maximum of 10% DDGS in their rations before gradually moving to 15% and now 20% and 30% inclusion, according to the council.

Prices have also been attractive to DDGS users. Slozka predicts 2010 will bring more US exports to Canada with the period of April, May and June being a key time frame.

"DDGS is currently trading at 105% of Canadian barley whereas in 2009 it was in excess of 120% and pulled out of the ration," he said.

While any growth is welcomed by the industry, Slozka said USGC members and Canadian Livestock producers should know that rapid growth can present setbacks.