DDGS Market Overview
The market for DDGS is worldwide due to its extensive use as a complement to animal (ruminants, swine, poultry, etc) feed. Ruminants, especially dairy cattle, provide the greatest value due to the contribution of nutrients and DDGS protein overrun.
The market for DDGS is expected to remain favorable in the EU due to the following factors:
- The demand for high protein feed is expected to remain constant in the EU, in line with total meat production.
- Currently, DDGS is used exclusively as a source of protein in animal feed, mainly for cattle, for meat and dairy. However, there is a growing trend for feeding poultry and pigs, which can compensate for certain changes in meat consumption habits.
- There is a structural deficit in the production of high protein feeds in the EU, with imports of approximately 65%. No significant changes are expected in that trend.
- The price of DDGS is linked to that of animal foods that it replaces, mainly soybeans, as it is one of its main substitutes.
- The high quality and consistency of the product as a result of its manufacturing process is highly valued.
- The market for DDGS is very dependent on transport and logistics costs, so local production is in high demand. Approximately 90% of production is consumed locally.
DDGS is also used as a food supplement for other types of animals, ranging from poultry, pigs, canines, etc. The percentage of DDGS included in the pellets varies by species. In addition, it is a valuable source of protein that Vertex Bioenergy can certify as sustainable DDGS.