Do you want to know the supply trends of corn DDGS? Well, for feed buyers in particular, corn DDGS supply trends are driven by many factors. The biggest factor of all remains ethanol production volumes that drive trends. These volumes are increasing globally, being influenced by volatile corn prices. This is happening due to biofuel mandates, in particular, affecting the trends. The DDGS quality is involved worldwide, with more product types.

This blog has discussed the corn DDGS supply trends that every buyer must know.

Key DDGS Supply Trends

Tied to Ethanol Production: 

Corn DDGS production is a direct co-product of corn-based ethanol manufacturing. Ethanol plants are being expanded with the Government biofuel mandates. India’s E20 policy, being one of them, is also expanding DDGS supply. Buyers should monitor regional ethanol production to gauge DDGS availability.

Growing Global Market:

The global DDGS market is expanding, as noted with North America shining as a supplier. The demand for animal protein is growing, especially in developing countries. This demand is leading the DDGS supply, with North America being a fast-growing region.

Here are animal targets for this demand and supply:

• Poultry
• Dairy
• Aquaculture feed

Price Volatility:

DDGS maintains a cost advantage of 15-20 percent when compared to soybean meals. This makes DDGS an attractive alternative to other feeds, even though it mirrors the prices. However, volatile grain prices can erode this advantage in the short term, so look out for that. This requires buyers to make long-term contracts and balance them with spot buys.

Product Diversification and Quality:

Technological advancement in ethanol production has led to growth in DDGS. The development of different types of DDGS is a big factor, including high-protein. This allows buyers to select products to meet specific livestock nutritional needs. Quality consistency remains a big factor for buyers when selecting. This is regarding moisture content and mycotoxin levels in particular.

Logistics and Supply Chain:

The DDGS supply chain can face challenges, including issues related to storage or others. Transportation bottlenecks are one of the challenges faced by many. For uninterrupted operations, these factors are important:

• Reliable sourcing
• Supply chain management

Sustainability as a Driver:

DDGS is a main factor that helps in sustainable farming practices by reducing wastage. This is because DDGS utilizes a byproduct that would otherwise be wasted. If you’re an environmentally conscious consumer, then DDGS is for you.

Actionable Insights For Feed Buyers

Focus on Quality Metrics:

You need to rely on objective quality control certificates in the case of DDGS. As a buyer, you should never trust subjective metrics alone for consistent nutritional value. Things like color don’t tell the real quality, so buyers should look beyond that in the case of DDGS. For the value and safety of your livestock, make sure to stay alert. DDGS typically contains 28-30% protein, which is what to look for.

Strategic Procurement:

You should balance long-term contracts to easily predict price. This is an important factor in the flexibility of spot purchases. As you know, DDGS costs less than soya bean meals, so monitor those prices. 

Explore New Product Types:

Newer DDGS variants should be investigated by the buyers for animal diets. The buyer must check the feasibility of those variants before buying. This becomes important as they can offer better performance and feed conversion ratios. 

Plan for Storage:

You should ensure adequate storage facilities for the DDGS, so that product quality is maintained. When purchasing in bulk, this becomes even more important. The storage area should control temperature and humidity against spoilage.

Conclusion

There are many Corn DDGS supply trends that you should know of. This blog has explained all of the trends in detail, including the market and sustainability. Buyers need to be aware of some safety factors when dealing with DGGS in particular. Prodigy Foods is a trusted place for Corn DDGS supply.

FAQs

Q – What is the demand for DDGS like?

A – The demand for DDGS may grow in India at a 6.5% CAGR from 2024 to 2035. This shows that DDGS is a big factor in animal feed, and will remain.

Q – Who are the major suppliers of Corn DDGS in India?

A – Prodigy Foods is a major supplier of Corn DDGS in India, leading the exports.

Q – What’s the future of DDGS like?

A – The future of DDGS looks bright as the market may grow up to USD 24.1 billion by 2030. 

Q – Do DDGS have a shelf life?

A – The shelf life of DDGS, in particular, is indefinite for now.