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DDGS markets expanding

The U.S. Grains Council kicked off its 5th International Marketing Conference and 48th Annual Membership Meeting in San Antonio, Texas with positive news about Council efforts in promoting distiller’s dried grains with solubles (DDGS) and rosy outlooks for several of the world’s emerging markets where the Council has played an active role through its outreach programs.

According to the Council’s overseas directors and consultants who presented to U.S. producers and Council leaders, DDGS is experiencing increasing acceptance in foreign markets as more industry users are becoming more familiar with the product through Council-organized feeding trials, educational workshops and other outreach programs.

One country experiencing increasing growth is Egypt. During the 2005/06 market year, Egypt imported 6,400 metric tons of U.S. DDGS compared to 32,200 tons during 2006/07.

Additionally, Morocco has also emerged as a growing market for DDGS, currently importing 54,000 metric tons with the potential to bring in 200,000 to 600,000 tons in the near future.

“We have been putting a lot of focus on introducing DDGS to the Moroccan market,” said Kurt Shultz, director in the Council’s Mediterranean and African office in Tunisia.

In addition to reports of explosive DDGS imports around the world, the Council’s overseas directors also highlighted promising outlooks for emerging markets where the USGC is quite active, including Iraq and India. In Iraq, the Council has focused on rebuilding the poultry industry by strengthening Iraq’s poultry associations.

“Future predictions show the industry will increase by 25 percent within the next five years as the Council continues to promote ideas of modern trade and assists in the transfer of technical support to local farmers,” said Abdellah Ait Boulahsen, USGC consultant in Iraq.

India is another emerging market with huge potential, especially for U.S. corn imports. Currently a 15 percent duty inhibits any imports into India however, the Council has been working to facilitate discussions between end-users and the government in attempts to eliminate the duty and create feed demand by increasing domestic poultry consumption.

The Council will continue to promote the use of DDGS to foreign customers while also focusing its energy on building emerging markets. Its active involvement with local industry users and governments has already produced positive effects while continuing to carry out its mission of developing markets, enabling trade and improving lives.

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