Marketing DDGS in Indonesia Boosts Sales

INDONESIA - 500 metric tons of US distiller’s dried grains with solubles(DDGS) was sold in Indonesia as a direct result of US Grains Council (USGC) programmes.
calendar icon 7 December 2009
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Last week, USGC Consultant Dr Budi Tangendjaja travelled to Indonesia for a three-day DDGS promotion in the layer, dairy and fish feed sectors. Although DDGS has been introduced in the region over the past few years, Dr Tangendjaja said many self-mixing layer and dairy farmers are still unaware of DDGS.

"Mixing farmers use corn, soybean meal, meat and bone meal, and rice bran as their main ingredients. I spoke to the farmers about using DDGS as an alternative feed ingredient and demonstrated feed formulations in which DDGS was able to reduce feed costs. Several farmers indicated an interest in trying DDGS and contacted local suppliers who currently import the product," he said.

Dr Tangendjaja told participants that a DDGS inclusion rate of 15 per cent in the layers' diet was able to reduce their costs by up to Rp 136 per kilogram. "Following the meeting, all of the participants indicated an interest to try DDGS, and one group agreed to purchase DDGS from a local supplier," he said, adding that dairy farmers were also intrigued by the cost savings and the potential of increased milk production. One dairy cooperative in East Java, that tested the ingredient, reported feeding an extra one kilogram of DDGS per cow per day resulted in an increase of daily milk production of about 3.1 kilograms per cow per day.

"Upon hearing these results, a local importer indicated an interest in using DDGS and would like to distribute it to the farmers," said Dr Tangendjaja. "It is estimated that the total number of dairy cattle in East Java is 150,000 head. If each head of cattle can be fed one kilogram of DDGS daily, the DDGS requirement would be 150 tons per day. This would be a significant quantity for marketing DDGS." USGC Regional Director in Southeast Asia. Adel Yusupov said, "This sale is a good example of the effectiveness of the Council's one-on-one marketing and technical servicing strategies in Southeast Asia.

The Council will continue to promote DDGS to the self-mixing layer farmers in the region as well as introduce DDGS to the dairy industry."

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