Feeding Distiller Dried Grains with Solubles (DDGS) Market

Introduction

Production of livestock and poultry continues to be instrumental in driving the growth in adoption of feeding distillers dried grains and solubles (DDGS) at a global level.

According to United States Department of Agriculture (USDA), global meat trade is expected to increase in 2018, with beef witnessing high demand.

This has led to increased beef production and exports across countries, further enhancing the growth of the feeding distillers dried grains and solubles (DDGS) market.

Given its nutritional benefits for animal feedstock, growth in livestock production is directly proportional to the growth of the feeding distillers dried grains with solubles (DDGS) market.

In a new study drafted by Fact.MR, the growth prospects for feeding distillers dried grains with solubles (DDGS) are likely to be positive during the assessment period across regional markets in the globe.

According to this report, the feeding distillers dried grains with solubles (DDGS) market is projected to expand at a CAGR of 4.8% in terms of value throughout the period of assessment, 2018-2028.

Additionally, report reveals that the demand for feeding distillers dried grains with solubles (DDGS) in Asia Pacific excluding Japan (APEJ) region is expected to increase, making APEJ an attractive market for feeding distillers dried grains with solubles (DDGS).

Feeding Distillers Dried Grains with Solubles (DDGS): Corn DDGS Reign Supreme With Wheat Following the Suit

Feed distillers dried grains with solubles (DDGS) market has been largely influenced with increasing adoption of corn DDGS for cattle and other livestock across the globe.

Corn feeding distillers dried grains with solubles (DDGS) have witnessed higher demand among cattle as it facilitates growth of milk yield as well as enhances the content of protein and fats in it.

However, though adoption and sales of corn feeding distillers dried grains with solubles (DDGS) is high, the scope of its application has reduced to cattle and sheep, reducing its pace across markets worldwide.

Moreover, corn feeding distillers dried grains with solubles (DDGS) cannot be used in pig diets owing high concentration of fibers, making the feed difficult to digest.

Albeit sluggish pace of corn feeding distillers dried grains with solubles (DDGS), it is expected to retain its status quo as a widely used ingredient in feed stock, largely contributing to the growth of the feeding distillers dried grains with solubles (DDGS) market during the assessment period.

On the contrary, wheat feeding distillers dried grains with solubles (DDGS) have gained high traction since the past years.

Wheat feeding distillers dried grains with solubles (DDGS) are widely used in pig diets given its high protein content and less crude fat as compared to corn feeding distillers dried grains with solubles (DDGS).

Moreover, wheat feeding distillers dried grains with solubles (DDGS) impart high strength, performance and facilitate increased feed intake.

That said, use of wheat feeding distillers dried grains with solubles (DDGS) in pig, sheep and other livestock diets is expected to witness a steady growth path, consequently aiding the growth of the overall feeding distillers dried grains with solubles (DDGS) market during the forecast period.

Furthermore, feeding distillers dried grains with solubles (DDGS) market growth has also been influenced by the increasing use of rice feeding distillers dried grains with solubles (DDGS), as they are expected to witness meteoric rate of consumption in animal feedstock as it offers moderation of fiber content, high protein content, easy digestibility, high energy and low fats.

Rice feeding distillers dried grains with solubles (DDGS), due to their nutritional benefits, are largely used in cattle, poultry animal and fish diets.

Feeding distillers dried grains with solubles (DDGS): North America to Reflect Higher Market Attractiveness Than European Countries

North America continues to reflect potential growth opportunities for feeding distillers dried grains with solubles (DDGS) market, ethanol production being one of the major factors of growth, given the increasing production of biofuels in the region.

Sales of feeding distillers dried grains with solubles (DDGS) are expected to remain concentrated in United States on the back of increasing beef exports in the country.

According to USDA, beef exports in United States are expected to grow by 6 percent in 2018, buoyed by a strong demand from various countries including Mexico, Korea, Japan and Canada.

Furthermore, according to USGC (U.S. Grains Council), exports of feeding distillers dried grains with solubles (DDGS) have increased to more than 11 metric tons in 2017 and expected to increase in the coming years.

This factor has been instrumental in pushing the growth of the feeding distillers dried grains with solubles (DDGS) market in North America.

Feeding distillers dried grains with solubles (DDGS): Alternative Nutrition Enhancers Can Hinder Growth

During the drying process, several volatile organic compounds are combined or released that can alter flavor making it undesirable for animal feed, particularly for pigs.

This can significantly reduce the intake of diets enriched with feeding distillers dried grains with solubles (DDGS), making them unwanted, getting dumped in landfills.

With development of alternatives to feeding distillers dried grains with solubles (DDGS), such as corn-soybean diets that offer high nutrition resulting in higher feed intake, the sales of feeding distillers dried grains with solubles (DDGS) are likely to get hampered, in turn negatively impacting the growth of the feeding distillers dried grains with solubles (DDGS) market.