May 25, 2011

Peru completes first US DDGS purchase since 2007

Peru's San Fernando poultry company has purchased 5,000 tonnes of US distiller's dried grains with solubles (DDGS), valued at US$1 million, the first Peruvian DDGS purchase since 2007.

San Fernando is Peru's largest poultry producer, importing more than 600,000 tonnes (23.6 million bushels) of corn and soy products, 43% of which came from the US last year.

The purchase was possible due to a successful effort by San Fernando, the US agricultural attaché, and the US Grains Council to correct a mis-classification of DDGS that had effectively blocked imports from 2007-10.

San Fernando reported a very successful experience using DDGS, although their inclusion rates were conservative. The company is now looking for another opportunity to import DDGS jointly with several other poultry companies. Although details are not final, another shipment could arrive as early as June.

To build on this progress, the Council completed a series of seminars and meetings with regional grain importers and livestock producers to promote further DDGS usage in Peru's poultry, dairy, and swine industries.

"These seminars are critical as most of Peru's poultry farmers don't have a full understanding of how best to use DDGS," reported Kurt Shultz, USGC regional director for Latin America and the Caribbean. "In addition, it became abundantly clear to these participants that there is significant market potential in Peru for US DDGS," he said, citing the opportunities for dairy and poultry producers to better manage feed costs.

"The Council will expand its assessment of the benefits of DDGS as well as to the poultry sector and begin providing this information on a monthly basis to Peruvian importers and end-users to highlight the important cost savings possible for all sectors of the Peruvian livestock industry," Shultz concluded.