Competitive feed market in Malaysia creates potential for U.S. DDGS

16.05.2017

U.S. Distiller’s Dried Grains with Solubles (DDGS) has a potential growth market in Malaysia as corn and soybean meal becomes more expensive, prompting feed manufacturers to consider alternative feed ingredients. The competitive price of DDGS will spur further imports into Malaysia as it is an excellent, nutrient rich feed ingredient in livestock and poultry feed rations. In 2017-18, export sales to Malaysia could reach up to 80,000 tons valued $14 million, according to a report from the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA).

DDGS is high in energy, mid-protein, and high digestible phosphorus which makes it an attractive, partial replacement for some of the more expensive, traditional energy (corn), protein (soybean meal), and phosphorus (mono- or dicalcium phosphate) used in animal feeds. Malaysian feed millers told the USDA they believe that DDGS may comprise up to 10%-12% of feed formulation

The first U.S DDGS sold in Malaysia was in 2004, and the yearly growth of Malaysia production in the poultry, swine, and ruminant industry meat production points to potential growth in DDGS exports as an alternative feed and livestock supplement.

In Malaysia, U.S. DDGS can play a key role in the diet of chicks, broilers, broiler breeders, laying hens and swine, the USDA said. DDGS are the nutrient rich coproduct of dry-milled ethanol production made from corn. As the world’s biggest producer and exporter of DDGS with over 200 ethanol plants, the U.S. offers price competitive DDGS relative to other feed ingredients.

According to the abstract from the Poultry Science Association’s 105th Annual Meeting in 2016, a benefit of DDGS is that it contains a natural yellow pigment called xanthophyll which improves egg yolk and poultry skin color. This reduces the need for synthetic pigment which may otherwise be used, another cost savings.

Another benefit is that it is uncommon for most of the corn producing regions in the U.S. to have adverse weather and climatic conditions that cause susceptibility to mycotoxins in corn which in turn affects mycotoxins in DDGS. This impacts animal performance.


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