USGC Efforts Grow Demand For DDGS In Southeast Mexico, Marketing System To Supply Producers Regular Product

By using Market Access Program (MAP) funds, the U.S. Grains Council’s (USGC’s) Mexico office invested in marketing programs to promote distiller’s dried grains with solubles (DDGS) in southeast Mexico. In 2017, the Council completed seven trials and more than 50 DDGS promotional presentations in Yucatan, Campeche and northern Veracruz. This multi-faceted marketing program has engaged both small-scale producers and larger cattlemen’s associations and the feed industry value chain.

In 2017, the Council celebrated a large breakthrough in the program in Veracruz with a large group of cattle ranchers. The Council’s DDGS consultant worked with one of the group’s main leaders to conduct a field demonstration with a group of replacement heifers.

As a rule of thumb, replacement heifers require 350 kilograms of weight to enter their reproductive program. The trial was designed to show how DDGS can allow the heifers to reach this weight in less time than the control diet. According to the previous daily gain, the heifers were expected to need 198 days reach target weight, but the trial with DDGS proved only 94 days were needed, saving about $1.50 per kilogram gained.

After the results of this trial were disseminated to the group, all the members began using DDGS in their rations. Currently, this represents about 1,500 metric tons per month of demand, but with the potential for 3,000 tons when all members use DDGS at the highest inclusion levels. The company imported U.S. DDGS valued at $3 million in 2017.

The Council invested $10,000 of MAP funds through consultant fees and trial implementation costs, resulting in a net return of investment (ROI) of $300 per $1 of MAP funds invested.

Overall, the DDGS market in Southeast Mexico increased 12.5 percent from 2016 to 2017. In 2017, the region imported 280,000 tons of U.S. DDGS, compared to 245,000 tons the prior year. The growth in DDGS imports was 35,000 metric tons valued at $5.9 million. The Council invested $40,000 of MAP funds in 2017, resulting in an overall net return on investment (ROI) of $147 per $1 of MAP funds invested.