U.S. Grains Council staff and consultants were in southern Mexico this week meeting with grain importers and livestock producers as part of a program to promote distiller’s dried grains with solubles (DDGS). Despite being the second-largest importer of U.S. DDGS, importing 1.5 million metric tons in 2012, an assessment conducted in 2012 revealed that southern Mexico was an underserviced area.

Julio Hernandez, USGC director in Mexico commented, “Even under conservative estimations, the region holds the potential to utilize more than 1 million tons of DDGS per year.” The area contains a large beef population of more than 4 million head, which would be the primary drivers of demand. Through the meetings with the regional livestock associations, feed millers and importers, the Council is putting together a joint marketing program which would develop this market.

“The Council is using its role as a catalyst to bring several key players in the region together and unite them in developing this feed market and expanding DDGS sales to this region,” said Alvaro Cordero, USGC manager of global trade.

Upon completion of this week, the Council will draft a 2-3 year marketing program to present to its Mexican partners. The plan will ask them to join the Council in developing the market not only for U.S. DDGS, but compound feeds, which will represent a significant new business opportunity for both U.S. and Mexican industries.