Brazil’s corn ethanol sector to prospect DDG opportunities in Colombia

Representatives from Brazil’s corn ethanol industry took part in a trade mission to Colombia last week, aiming to explore business opportunities for dried distillers grains (DDG/DDGS), high-protein byproducts of corn processing. Colombia opened its market to these Brazilian products in September of this year.

The mission is being conducted by the National Union of Corn Ethanol (Unem), the Brazilian Trade and Investment Promotion Agency (ApexBrasil), and the Brazilian Embassy in Bogotá. Planning for the trip began in September, right after the Colombian market’s opening was announced, according to Andréa Veríssimo, Unem’s Director of International Relations and Communication.

Unem noted that Colombia’s market has not yet been fully explored, so Brazil has no solid export forecast for the coming year. Since the market opened, Colombia has imported 280 tonnes of DDG/DDGS from Brazil, generating $61,800 in trade.

According to Clovis Serafini, Agricultural Attaché in Colombia, a key target market is pet food production. The Colombian pet sector is expected to generate R$7.3 billion by 2026. Research shows that Colombians spend an average of R$175 per month on pets, with households owning dogs doubling those with children.

The mission includes a technical seminar for representatives in the animal feed sector and business matchmaking sessions between Brazilian firms and Colombian buyers. Among the participating companies are FS, Neomille (a Cerradinho Bio subsidiary), and São Martinho.

Unem reports that the growth of corn ethanol production has increased the supply of DDG, which is used in commercial livestock feed and pet food. For 2024, Brazil is projected to produce 3.65 million tonnes of DDG/DDGS, with 70% expected to be consumed domestically.

From January to September, Brazil exported 554,300 tonnes of DDG/DDGS to 36 countries, generating $134.9 million. Total 2023 exports reached 608,900 tonnes, with revenues of $180.5 million. Brazil’s primary markets for DDG/DDGS are Vietnam (30.5% of exports), Turkey (19%), and New Zealand (13%).

Source: Globo Rural

Original reporting: https://globorural.globo.com/agricultura/milho/noticia/2024/11/setor-de-etanol-de-milho-vai-prospectar-negocios-com-ddg-na-colombia.ghtml

Sharing is caring!