Armed with advantageous prices for U.S. distiller’s dried grains with solubles (DDGS) and the new 2020/2021 Corn Export Cargo Quality Report, U.S. Grains Council staff (USGC) crisscrossed Mexico last month to engage in person with grain buyers and nutritionists and make the case for DDGS inclusion in livestock diets. Along with happy reunions and sharing information, they came away with a tangible win in the Yucatan: a DDGS sale valued at just under $3 million.
In one week, Reece Cannady, USGC manager of global trade, and Javier Chavez, USGC marketing specialist in Mexico, visited with pork producers in Obregon, nutritionists in Monterrey, grain buyers in Mexico City, and importers in Merida to show the value that DDGS can provide in livestock rations.
After discussing the favorable cost and feed benefits of DDGS with a buying group in the Yucatan, the owner of the company made the large purchase.
“The buyer and end users didn’t want to miss out on such a good opportunity, and even before we completed the presentation, the buyer started making calls,” said Chavez. “By the end of the meeting, he informed us that he had purchased U.S. DDGS.”
The Yucatan buying group coordinates purchases of grain serving about 10 feed mills, two of which produce feed for sale to third parties and the remaining eight of which are part of integrated companies producing broilers, layers, swine or cattle. They also supply product and influence important players in the region. Their average annual consumption is 400,000-500,000 metric tons of corn (15.75 million to 19.70 million bushels), 85,000 metric tons of soybean meal and (prior to 2020) 60,000 metric tons of DDGS.
“The absence of DDGS in the region has been a challenge on many fronts,” Cannady said. “But by getting back on the road and talking with people in person, we can build those connections that help position U.S. grain quality and price positively in the eyes of customers.”
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.