Canada DDGS Promotion Program Leads Directly To New Sales

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Canada is a vital market for U.S. feed grains and co-products due to its proximity to the U.S. corn production area and ethanol plants along the northern border of the United States. In the most recent marketing year, the United States’ northern neighbor was the seventh-largest U.S. distiller’s dried grains with solubles (DDGS) export destination and the ninth-largest U.S. corn export market destination.

 Despite these numbers, Canada’s imports have been on a steady decline in imports since 2010, largely due to the market effects of China’s surge in DDGS demand.

 In 2016, the Council utilized Market Access Program (MAP) funds to conduct enhanced DDGS promotion efforts in Canada, touring west and central Canada with beef feedlot managers. The Council presented information on U.S. DDGS supply and demand, nutrition, quality and contracting, increasing awareness and understanding of DDGS nutrient content and feeding strategies.

 During the mission, a participant made onsite sales of 18,000 metric tons of U.S. DDGS, valued at $3 million, and continued to negotiate with other buyers at the completion of the program.  The Council invested $8,000 of MAP funds in support of this marketing program, generating a return on investment of (ROI) of $375 per $1 of MAP invested.