By Kurt Shultz, USGC Regional Director in Latin America and the Caribbean

In 2011, South America imported 200,000 metric tons of U.S. distiller’s dried grains with solubles (DDGS), with Chile and Colombia topping the list as lead importers. However, other countries in the region are also taking notice of the nutritional and cost advantages of the feed ingredient.

Peru began importing DDGS in 2011, and local Council sources reported the arrival of 6,000 tons of U.S. DDGS in March, bringing total imports to 23,000 tons. Likewise, Uruguay began importing DDGS from the United States in 2010, nearly reaching 20,000 metric tons,and an additional 7,200 tons is reported to arrive in Uruguay later this week. While not export destinations yet, Brazil and Paraguay are currently exploring import options.

Meanwhile, implementation of the U.S.-Colombian free trade agreement will remove a 10 percent duty on DDGS imports, which is expected to generate further interest in U.S. exports. Last year, Colombia imported 85,000 tons of DDGS from the United States. When the duty is removed, U.S. exports of DDGS into Colombia may easily double.

The South American livestock industry has the potential to import 2.3 million tons of DDGS, a 10-fold increase in current levels.