October 28, 2008

Mexico remains as the leading DDGS buyer

Mexico currently holds the title as the number one purchaser of US DDGS, importing 708,000 tonnes in 2007.

Canada follows in second place importing 317,580 tonnes last year. In the first eight months of 2008, Mexico has already imported nearly 699,000 tonnes.

Julio Hernandez, US Grains Council director in Mexico and Central America said his native country is not near its maximum utilisation of the co-product.

He said Mexico has the potential in the foreseeable future to import as much as 4 million tonnes of DDGS.

Hernandez calculates Mexico's strongest sector, the poultry sector, to eventually import 1.1 million tonnes.

In addition, the beef sector has the potential to use 1 million tonnes; dairy 890,000 tonnes; and swine 788,000 tonnes.

He said the Council will also explore promoting DDGS beyond the livestock and poultry industries in an effort to maximize profitability for agribusinesses and US farmers.

He added that they see great potential for DDGS outside the typical markets. The aquaculture and pet food industries are two examples of sectors that have great potential in terms of incorporating DDGS.