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Customer Servicing Increases US DDGS Demand

by 5m Editor
16 October 2009, at 11:51am

MALAYSIA - The US Grains Council recognizes the opportunity for growth of US distiller’s dried grains with solubles (DDGS) exports to Malaysia, but three main factors hinder further market access.

USGC Regional Director in Southeast Asia Adel Yusupov said, “First, there is a lack of updated technical information on how to effectively use DDGS in commercial feed production, least-cost ration formulation and animal nutrition, which holds back the use of DDGS by commercial feed producers and on-farm mixers. Second, the image of DDGS as a high-quality feed ingredient is dented by the industry’s false perception of high mycotoxin levels in DDGS, which results in a lack of use and/or low levels of DDGS inclusion rates in animal feed rations. Finally, the lack of information about purchasing, handling and proper storage limits feedmillers’ ability to import directly from US suppliers, control product quality and purchase DDGS in larger quantities.“

The Council believes growth in DDGS demand depends on success in addressing these factors. This week, USGC Consultant in Southeast Asia Dr Budi Tangendjaja conducted several one-on-one technical servicing visits to key commercial poultry and swine producers in Malaysia. These visits follow a 10-day USGC DDGS promotion in Thailand, the Philippines, Viet Nam and Malaysia conducted at the end of September. Malaysia’s broiler sector is the largest, most productive livestock sector in the country.

According to the Council, demand for broiler meat has grown tremendously over the past 30 years, as per capita consumption has grown from 22 pounds per person in the 1970s to more than 75 pounds per person in 2008. Broiler production is estimated at 511.8 million birds per year. The estimated volume of feed manufactured is 1.3 million metric tons. This capacity comprises 27.2 per cent of the total feed volume produced in Malaysia.

Malaysia’s swine industry is not nearly as established as its poultry sector. All pig farms produce their own feed rations, which varies the farm performance according to each farms’ capacity. The estimated volume of feed manufactured for swine sector use is 976,000 tons. This capacity makes up 21 per cent of the total feed volume produced in Malaysia.

“Customer education programs will show end-users that DDGS can be effectively used as a safe, high-quality feed ingredient in poultry and swine diets,“ said Dr Tangendjaja. “Increased contact with key individuals and organizations will enable the Council to increase demand for DDGS and ultimately increase the volume of US DDGS exports to Malaysia.“

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