Mexican Conference Solidifies DDGS Potential
Gathering aimed to build confidence in potential buyers from seven Latin American countries
Sharing firsthand experience using feed ingredients like U.S. dried distiller’s grains with solubles (DDGS) is a powerful market development tool, which is why the U.S. Grains Council (USGC) organized a November conference in Mexico City to bring together successful Mexican DDGS end-users with potential buyers from seven other Latin American markets.
“Our goal was to promote the use of DDGS in companies from countries like Ecuador, Peru, Costa Rica, Guatemala, Panama and the Dominican Republic - which do not commercially use the product yet,” says Catalina Correa, USGC regional marketing specialist for the Western Hemisphere. “We are working to build confidence in these potential buyers by sharing the experience of decision-makers for successful beef and dairy operations in Mexico and, in turn, triggering trials to test out DDGS in their own businesses.”
Presentations on nutrition, supply chains, import logistics and marketing as well as first-person testimonials from existing DDGS buyers and users were followed by a roundtable discussion that allowed the conference attendees to express their potential concerns with import logistics, costs and storage. The experienced Mexican sellers and end-users shared how they navigated logistics and successfully integrated DDGS as a feed ingredient for both cattle ranchers and dual-purpose dairy producers.
“Our consultants and customers in Mexico shared not only the effectiveness of DDGS as a feed ingredient, but also how they developed the supply chain that is now in place,” says Javier Chavez, USGC marketing specialist in Mexico. “Presenting the difficulties encountered in doing so and the way each hurdle was solved allowed our Mexican participants to celebrate their success and demonstrated to our Latin American attendees the potential for DDGS use in their operations.”
Attendees also visited a GRAMOSA facility to see the market logistics of U.S. DDGS firsthand, including the company’s unloading and storage facility. GRAMOSA imports 10,000 metric tons of U.S. DDGS a month to manufacture cattle, dairy, swine and poultry feed in addition to selling DDGS directly. The company also showcased its plans for a new port facility at Veracruz, complete with updated unloading technology and a shuttle train facility.
“GRAMOSA left a powerful impression on our Latin American participants as an example of a very successful company, located outside of the United States, that is using U.S. DDGS on a large scale,” Chavez says.
USGC continues to work with customers throughout Latin America to expand the adoption of U.S. DDGS as a feed ingredient. In southeastern Mexico, trials presentations are demonstrating the effectiveness of DDGS and the importance of developing supply chains. These efforts will continue to extend throughout the region through the Council’s technical support and trade servicing activities.