Canada’s close proximity to U.S. corn producers and ethanol plants makes it a natural market for distiller’s dried grains with solubles (DDGS). However, in January it experienced a market hindrance related to the pelletization of feeds containing DDGS, which affected the sale of the product into Ontario. The U.S. Grains Council (USGC) responded immediately by sending a leading feed manufacturing technologist as well as USGC consultants to provide onsite technical evaluations, recommendations and assistance.

The experts visited three feed mills that were each experiencing reduced pellet production and pellet quality, anywhere from 15 percent to as high as 30 to 40 percent, depending on the diet formulation.

The team concluded that possible contributing factors were:

• the increased concentration of the industrial protein called Zein, which is three times greater in DDGS due to the multiplicative impact of removing the starch;
• the low test weight of the new crop U.S. corn that can be a contributing factor to the poor performance of the pellet presses; and
• the new U.S. crop corn supply not being homogeneous through co-mingling.

“All three of the plants made changes based on the expert’s suggestions,” said Marri Carrow, USGC regional director of the Western Hemisphere. “The results of these changes are that the mills are achieving 2 tons per hour more pellets, fewer pellet mill jams and less wear on equipment and people. With these issues resolved, all indicators point toward continued demand growth for U.S. DDGS in the Canadian market.”

Moving forward, the Council’s strategy in this market is to maximize the DDGS demand potential so that when it is price competitive, the Canadian industry maximizes its use of this valuable co-product.