Peruvian DDGS Feeding Trials

Using MAP (Market Access Program) funds, the U.S. Grains Council partnered in 2011 with Gloria, the largest dairy processor in Peru to conduct feeding trials using Distiller Dried Grains with Solubles (DDGS) a co-product from the U.S. ethanol industry. Feeding trials were conducted on three commercial dairy farms and the results were publicized to the Peruvian dairy industry through a series of workshops and publications co-hosted by the U.S. Grains Council and Gloria. An initial analysis of the dairy sector’s feed costs showed that at a low DDGS inclusion rate, dairy producers could save $130 per ton of complete dairy feed by using DDGS. The margin increased to $189 savings per ton at higher inclusion levels of DDGS in the ration.

As a result of the feeding trials and the proven benefit to local dairy producers, in 2012 & 2013 Gloria has imported 24,386 metric tons of DDGS worth approximately $7.3 million. Compared to 2011 when the Peruvian industry imported 11,938 metric tons of DDGS worth approximately $3.5 million. However, none of these imports were destined for Gloria and the dairy sector.

The Council invested $19,000 (using MAP funding) in supporting the feeding trials in 2011 through technical support of dairy nutritionist, publications and seminars. As a result, over $7.3 million in export sales of DDGS were generated with an ROI of $384 per MAP $1 invested.

An assessment of the Peruvian dairy sector has determined that this sector, alone could import 60,000 metric tons of DDGS annually, at an export value of $16.2 million annually, the U.S. Grains Council is continuing to work to capture more of this untapped potential in the Peruvian dairy sector using MAP funds.