Southeast Asia Major Growth Market for DDGS

GLOBAL - The US Grains Council carried out a 10-day distiller’s dried grains with solubles (DDGS) promotion in Thailand, the Philippines, Vietnam and Malaysia concentrated on the swine sector.
calendar icon 7 October 2009
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USGC Consultant Dr. Robert Thaler, professor at South Dakota State University, along with representatives of Council members The Scoular Company, Gavilon and J.D. Heiskell & Company, conducted industry seminars, technical workshops and one-on-one meetings with key customers in each market.

The promotion was designed to directly foster sales of US DDGS through marketing and customer education programs to a wide number of customers. “Malaysian, Vietnamese, Philippine and Thai swine producers received technical and market education on US DDGS use in swine nutrition. This customized training will help them understand the quality advantages and feasibility of DDGS use in local market conditions,“ said USGC Regional Director in Southeast Asia Adel Yusupov, who accompanied the group.

According to USDA’s Foreign Agricultural Service, these four countries combined imported 472,000 metric tons of US DDGS in 2008, almost double the previous year. So far in 2009 through July, these countries have imported 351,000 tons, 116,000 tons more than the same timeframe in 2008.

“Vietnam and Thailand are two of the largest swine industry consumers of US DDGS in Southeast Asia. Potential for DDGS use is tremendous given the rapid rates of feed and swine industry growth in both markets,“ said Mr Yusupov.

According to the Council, Thailand’s swine industry has the potential to become a major demand center for DDGS in Thailand, with the estimated demand in the home-mix and commercial swine feed sector of 350,000 tons, at conservative inclusion levels.

The Council estimates DDGS potential for use in the swine sector in Malaysia could reach 100,000 tons at conservative inclusion levels. “As most farmers rely on local trading houses for their feed ingredients, the Council’s current programs in Southeast Asia concentrate on independent commercial swine farmers with on-farm mixing capabilities,“ said Mr Yusupov.

“Feedmillers and traders who service the feed ingredient needs of swine farmers will take into consideration information received during the seminars, resulting in increased opportunities for US DDGS sales.“

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