US DDGS Exports to Southeast Asia Grow to Meet Region’s Demand

Southeast Asia’s imports of distiller’s dried grains with solubles (DDGS) between January and February 2010 show a 73 percent year over year increase, the U.S. Grains Council reports. In 2009, the region imported 890,000 metric tons of the ethanol co-product, accounting for 16 percent of the United States’ total DDGS exports, an increase from 590,000 tons in 2008.

The reason behind the growing number is Vietnam’s rising demand for DDGS across all sectors, including the aquaculture industry. According to USGC Regional Director in Southeast Asia Adel Yusupov, aquaculture feed producers see DDGS as a high-value feed ingredient complementing soybean meal products in high protein aqua diets. In addition to DDGS, Yusupov also referred to the potential market for U.S. corn gluten meal use in aqua feeds due to the product’s importance as a methionine source. 

“From livestock to aquaculture, producers in Southeast Asia have come to realize DDGS keeps feed costs low without affecting feed quality and animal performance,” he said. “The magnifying demand in the region can be attributed to the Council’s customer education efforts such as feeding trials and one-on-one meetings with end-users.”

Yusupov said the Council is currently focusing on DDGS promotion to the Indonesian and Vietnamese dairy sectors as each holds huge potential for DDGS use.

“The growing interest in DDGS in Southeast Asia spells promising news for U.S. farmers. The U.S. Grains Council has certainly fulfilled part of its mission by promoting a new product to the Asian region,” said Charles Ring of Texas Corn Producers Board and USGC Asia Advisory Team leader. “We have moved beyond simply making the price attractive to buyers and are now at the point where the product, because of its high quality, is selling itself.”

Ring said the mission is not over, however, and stressed the importance of continuing to promote DDGS to buyers and end-users in Southeast Asia.

Other regional developments reveal a first-ever shipment of 858 tons of DDGS to Cambodia in February, due to the presence of at least 10 Thai and Vietnamese operated feed mills.

Written by Jodi Kiely, USGC Contributing Writer