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USGC Revives Sales of DDGS to Peru

Peru's San Fernando poultry company bought 5,000 metric tons of U.S. distiller's dried grains with solubles, valued at $1 million, the first Peruvian DDGS purchase since 2007. San Fernando is Peru's largest poultry producer, importing more than 600,000 tons (23.6 million bushels) of corn and soybean products, 43% of which came from the United States last year.

The purchase was possible due to a successful collaborative effort by San Fernando, the U.S. agricultural attaché, and the U.S. Grains Council to correct a mis-classification of DDGS that had effectively blocked imports from 2007 to 2010.

San Fernando reported a very successful experience using DDGS, although their inclusion rates were conservative. The company is now looking for another opportunity to import DDGS jointly with several other poultry companies. Although details are not final, another shipment could arrive as early as June.

To build on this progress, the U.S. Grains Council completed a series of seminars and meetings with regional grain importers and livestock producers to promote further DDGS usage in Peru's poultry, dairy and swine industries.

"These seminars are critical as most of Peru's poultry farmers don't have a full understanding of how best to use DDGS," reported Kurt Shultz, USGC regional director for Latin America and the Caribbean.

Shultz says that in addition, it became abundantly clear to these participants that there is significant market potential in Peru for U.S. DDGS, citing the opportunities for dairy and poultry producers to better manage feed costs.

"The Council will expand its assessment of the benefits of DDGS as well as to the poultry sector and begin providing this information on a monthly basis to Peruvian importers and end-users in order highlight the important cost savings possible for all sectors of the Peruvian livestock industry," Shultz said.