Unlocking Opportunities for U.S. Distillers Grains with Solubles (DDGS) In Canada

The U.S. Grains Council (USGC) invested $180,000 of Market Access Program (MAP) funds in three separate distiller’s dried grains with solubles (DDGS) marketing and customer servicing programs for the Canadian market in 2015. As a result of these efforts, buyers in Canada increased their purchases of U.S. DDGS by 61,000 tons worth approximately $11.5 million in export sales, for a return on investment of $64 for every $1 of MAP funds invested.

In January 2015, the Canadian feed industry complained that feed mills were experiencing technical problems using U.S. DDGS in animal feeds and as a result, sales of U.S. corn co-products were being affected. The Council responded immediately by sending a leading feed manufacturing technologist as well as USGC consultants to provide onsite technical evaluations, recommendations and assistance.

The feed mills visited by the experts made the changes that were suggested by the USGC consultants. As a result, the mills are now achieving 2 tons per hour more pellets, fewer pellet mill jams and less wear on equipment and people.

In July, the Council conducted a second marketing program inviting a team of Canadian buyers and end-users of U.S. DDGS as well as a Canadian agriculture journalist visited the United States on a week-long learning journey co-sponsored by the Council and the Corn Marketing Program of Michigan.

Their travel focused on exploring additional ways to cut logistical costs and increase demand for U.S. DDGS and corn and included a tour of an ethanol plant, which was a highlight for some of the Canadian participants who had never seen ethanol production.

Finally, in October, the Council collaborated with industry partners for a meeting in Fargo, North Dakota, to present the results of three beef feedlot feeding trials done in the U.S. and concurrently in Canada. All of the feeding trials demonstrated the favorable economics of including distiller’s dried grains with solubles (DDGS) in feedlot rations to provide supplemental protein.

The Council’s ability to respond to immediate marketing opportunities and address bottlenecks to exports has been a contributing factor in the increased use of U.S. DDGS by the Canadian livestock industry in 2015. Imports of U.S. DDGS increased 61,000 tons above import levels in 2014, 425,000 tons versus 486,000 tons in 2015.