Mexico likely to remain top U.S. DDGS buyer
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...
In the first eight months of 2008, Mexico has already imported nearly 699,000 tons. According to Julio Hernandez, U.S. Grains Council director in Mexico and Central America, Mexico 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.“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.