USGC’s Memorandum of Understanding (MOU) – effective Nov. 1, 2013 – with Gloria, the largest and most progressive milk processor in Peru, will help Gloria overcome the major logistical bottleneck to expanding U.S. distiller’s dried grains with solubles (DDGS) use in Peru’s dairy industry. Through participation in Council’s MAP and FMD-funded technical assistance and feeding trials, Gloria determined that their dairies could benefit tremendously from incorporating DDGS in rations and they began importing DDGS in 2012. As a dairy processor, Gloria is not a feed manufacturer nor is it involved in raw material distribution to local dairies. In the past, DDGS imports by Gloria did not flow smoothly to the end users. The MOU with the Council will bring together Gloria and two major raw material suppliers for the dairy sector in a joint DDGS marketing effort. In 2014 and beyond, the Council will use MAP and FMD to provide technical support and marketing expertise to DDGS customers of these two warehouses and increase the demand for DDGS by the dairy sector. U.S. DDGS exports to Peru reached 14, 246 MT in Oct-Sept 2012/13, valued at $4.8 million. The Peruvian dairy sector could potentially increase its use 300 percent, with the longer-term target to eventually achieve a 500 percent increase compared to the current market.
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.