Lower Tariffs Open Doors to DDGS
Colombian market holds great potential for U.S.
Compiled by staff
Published: Dec 13, 2010
The U.S. Grains Council believes Colombia's reduction in tariffs for the import of U.S. distiller's dried grains with soluble will open the door for more purchases of the product. Originally set at 15%, tariffs are now 10% with these same rates applying to imports of U.S. corn gluten feed and 3,000 other items. Kurt Shultz, USGC director in Latin America and the Caribbean Region, says the Colombian market holds much potential for U.S. producers, but an increase in demand will result in a greater need for education on the proper use of DDGS.
Columbian feed manufacturers are still cautious when it comes to using DDGS. According to Shultz, many see it as an expensive product and unfamiliarity with its uses in animal feeds could limit growth in consumption. USGC plans to market the advantages of DDGS to importers and end-users in the poultry, dairy and swine sectors and show them the value this product can bring.
The Grains Council recently conducted an assessment and found the Colombian swine industry could save as much as $8 to $13 million a year by using DDGS in place of higher priced feed ingredients. In 2010, Colombia imported 69,000 tons of U.S. DDGS and 59,000 tons of CGF. Shultz says with a free trade agreement in place, along with proper market education, these imports could reach 700,000 tons per year.
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