USGC Consultations Lead To Increased DDGS Demand From Peru’s Dairy Producers

One of the largest dairy producers in Peru is now purchasing U.S. distiller’s dried grains with solubles (DDGS) for the first time, thanks in large part to one-on-one-consultations organized by the U.S. Grains Council (USGC) to introduce the feed ingredient.

The extra demand generated from this producer’s purchases alone will increase the country’s total DDGS demand by roughly 10 percent.

“DDGS use by one of the largest individual ranches in the country equals an extra 180 tons of monthly demand for the feed ingredient,” said Ana Maria Ballesteros, USGC regional marketing specialist in Latin America. “This positive result is evidence of the effectiveness of providing one-on-one consultations to end-users that can have immediate access to the ingredient.”

The Council brought U.S. and regional experts to meet directly with Peruvian dairy producers in 2017 for one-on-one consultations on the how-to and benefits of using DDGS as part of a dairy feed ration. In addition, the Council organized a Regional Nutrition Conference in August 2017 in Peru during which industry experts and end-users shared technical knowledge and practical experience using U.S. DDGS as well as corn and sorghum. The conference also allowed current users to share their own experiences, further reinforcing the Council’s educational efforts.

As a result of USGC activities like these, the dairy sector in Peru is now the largest importer of U.S. DDGS. Peru imported 31,600 tons of U.S. DDGS in 2016/2017, setting a new record. Thus far in the current marketing year (September 2017-February 2018), Peru has purchased 11,300 tons of U.S. DDGS.

“Peru’s large producers are becoming more aware of U.S. DDGS and are open to purchasing more,” Ballesteros said. “This situation has significantly changed from just a few years ago, thanks to the Council’s educational efforts.”

The Council is continuing these technical exchanges in 2018 with the dairy sector and the growing poultry sector. Combined with favorable trading terms under the U.S.-Peru Trade Promotion Agreement and attractive prices, these activities could mean even greater potential future demand for U.S. DDGS in the Peruvian feed sector.