INDIANAPOLIS, INDIANA, October 21, 2008 – Mexico currently holds the title as the number one purchaser of U.S. distiller’s dried grains with solubles (DDGS), a co-product of ethanol production, importing 708,000 metric tons in the 2007 calendar year. Canada follows in second place importing 317,580 tons last year. In the first eight months of 2008, Mexico has already imported nearly 699,000 tons. Julio Hernandez, U.S. Grains Council director in Mexico and Central America, presented at the Council’s International Distillers Grains Conference (IDGC) in Indianapolis, Ind., to answer a common question: How far can we push the number one market? Hernandez said his native country is not near its maximum utilization of the co-product. He said Mexico has the potential in the foreseeable future to import as much as 4 million tons of distiller’s grains.
“This is a very realistic potential,” Hernandez said. “However, the current financial crisis will represent a slowing in growth of Mexico’s livestock and poultry industries, but we are confident this will not last long.”
The poultry industry is the strongest sector in Mexico, demanding the greatest amount of feed ingredients. An increase in broiler capacity has occurred in the last three years and a steady continuation of this trend is anticipated. Hernandez calculates Mexico’s poultry sector to eventually import 1.1 million tons. In addition, the beef sector has the potential to use 1 million tons; dairy 890,000 tons; and swine 788,000 tons. He said the Council will also explore promoting distiller’s grains beyond the livestock and poultry industries in an effort to maximize profitability for agribusinesses and U.S. farmers.
“We see great potential for DDGS outside the typical markets. The aquaculture and pet food industries are two examples of sectors that have great potential in terms of incorporating DDGS,” he said. “The Council is currently conducting a study to better understand these businesses. Mexico has a lot of room for growth. Don’t rule us out yet.”
The IDGC is a cooperative effort between the Council and BBI International. The event’s sponsors include Council agribusiness members Agri Alpha; Hawkeye Gold; Furst-McNess Company; Renewable Products Marketing Group; Gavilon; and Quality Technology International. Council producer checkoff members sponsoring the conference are Iowa Corn Promotion Board; Indiana Corn; and Wisconsin Corn Promotion Board. The event will conclude Oct. 21.