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Mexico Still Biggest Market for Distillers Grains

Other large potential markets have been identified.

Mexico is the largest buyer of U.S. dried distiller's grain with solubles. In 2007 they imported 708,000 tons and in the first eight months of 2008 have almost matched that number. U.S. Grains Council director for Mexico and Central America Julio Hernandez told the USGC International Distillers Grains Conference in Indianapolis this week that the potential of the Mexican market for DDGS could be as much as 4 million tons.

"This is a very realistic potential," Hernandez said. "However, the current financial crisis will represent a slowing in growth of Mexico's livestock and poultry industries, but we are confident this will not last long."

Southeast Asia has been identified by USGC as a market for DDGS with huge potential. Adel Yusupov, USGC regional director in Southeast Asia told this week's conference that growth in sales has been strong, in particular to Thailand with an increase in imports of DDGS of 230% from 2007.

"Thailand is a remarkable market for the United States," Yusupov said. "It is one of the fastest growing markets, despite having the highest tariff in Southeast Asia at 9%. The fact Thailand is still importing DDGS at a very rapid rate is remarkable. To be on the conservative side, I would say Thailand is well positioned to import 400,000 metric tons of the co-product in two to three years. That would mean the quantity of U.S. DDGS going into this market would quadruple."

The USGC is working with USDA's Foreign Agricultural Service representatives in Bangkok to reduce or eliminate this trade barrier."

Another market that was that has shown interest in purchasing DDGS from the U.S. is Russia. With its growing poultry and swine industry there is great potential there and officials from large livestock feed output companies attended this week's conference and are looking for a reliable supplier of DDGS.

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