The Japanese feed industry is gaining confidence in incorporating the relatively new, low-oil U.S. distiller’s dried grains with solubles (DDGS) in their livestock rations. Some Japanese livestock producers were concerned about the changing oil content of DDGS due to the increased use of corn oil extraction equipment that removes part of the non-food grade corn oil in the DDGS by U.S. ethanol producers.

This process makes the oil available for other uses and also changes the feeding characteristics and potential value of DDGS. Regular DDGS may contain 10 to 12 percent oil (fat), with the low-oil variety containing 6 to 9 percent. While Japanese importers and end-users have started to accept low-oil DDGS, the U.S. Grains Council is still working to provide these customers with technical information.

Following the Council’s biennial Export Exchange, held in Seattle, Washington, last month, a group of important Japanese DDGS importers traveled to California and South Dakota to learn about the DDGS production chain, from sourcing corn for ethanol production to production and merchandizing.

The reduction of oil is a benefit for the dairy industry because DDGS provide fiber to help prevent fatty acid production in cattle. The team was very interested in learning more about the benefits like this one of low-oil DDGS as a dairy feed ingredient.

“The group learned valuable information about DDGS trade and nutrition, which could lead to higher inclusion rates of DDGS in Japanese feed and potentially an increase in U.S. DDGS imports in 2015,” said Tommy Hamamoto, USGC director in Japan.

The group also learned about the latest technologies modern U.S dairies use to be cost efficient.

“This team was composed of many young professionals in the industry,” Hamamoto said. “While we may not see an increase in imports immediately following the return of this team, many of the participants will take the knowledge and contacts they built during this tour into their future careers, which is what Export Exchange is all about.”

The Council will continue providing nutritional information about low-oil DDGS to the Japanese livestock sectors, and ultimately building demand for the product.

Click here to view photos from this team.