By Kurt Shultz, U.S. Grains Council Regional Director for the Americas

With the help of the U.S. Grains Council, AFABA (Ecuador’s association of feed producers) will re-introduce U.S. distiller’s dried grains with solubles (DDGS) into the Ecuadorian market starting February 2013. In the past, Ecuador imported small quantities (400 metric tons) of DDGS but had not been a consistent buyer. In 2010, the Council began holding technical DDGS seminars on nutrition and formulation in Ecuador. These addressed DDGS prices, logistics, product handling and storage, nutritional value, and correct formulation. As a result of these technical seminars and Export Exchange 2012, the Ecuadorian feed industry signed an agreement to purchase 3,000 metric tons of U.S. DDGS worth approximately $1.1 million.

Due to its government’s self-sufficiency policies for food security, local feed producers are required to buy Ecuador’s total crop. The feed industry is purchasing raw materials at high prices. The Council took this opportunity to continue promoting U.S. DDGS, which could help to reduce significantly the impact of high cost local corn and soybean meal. This month, the Council conducted 11 onsite trainings and three group sessions to small producers associations focused on DDGS. In addition, the Council distributed to nutritionists a matrix showing the recommended inclusion rates of DDGS in various rations.

“U.S. DDGS offer Ecuadorian feed millers price savings between $7 and $15 per metric ton at relatively low average inclusion rates of 10 percent,” said Dr. Mario Zumbado, USGC Nutritionist Consultant for Latin America. “Based on these price savings and the pressure on the Ecuadorian livestock sector to reduce consumer prices, we are confident that Ecuador will import more DDGS in the future.”

The Council estimates that the long-term potential for U.S. DDGS exports to Ecuador could reach 250,000 tons per year.