New project seeks to boost Brazilian corn meal exports

The Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the National Corn Ethanol Union (Unem) launched the 2023-2025 Corn Meal DDG/DDGS Export Promotion Project on Monday (7/10).

The goal is to promote the product internationally. Target markets were selected based on livestock production. They are: China, Spain, Indonesia, Japan, New Zealand, the United Kingdom, Thailand, Turkey, and Vietnam.

Dried distillers grains, or DDGs, are a by-product of corn processing for ethanol production and are used as a protein source in animal feed. The increase in corn production in Brazil and, consequently, of corn meal leads to a price reduction, which makes the product more competitive compared to other methods of animal nutrition.

The 2022/23 harvest estimate is that Brazil will produce 3 million tonnes of DDG/DDGS. Projections indicate that by 2031/2032, this volume will reach close to 6.5 million tonnes.

The use of corn meal in the Brazilian industry started in 2010. Currently, the country has 20 corn ethanol plants in operation and another nine already-authorized plants with the potential for DDG/DDGS production.

According to a report by MarketsandMarkets, global demand for DDG/DDGS is expected to grow at a compound annual rate of 3.2% between 2020 and 2025, driven by increased meat consumption, especially in developing countries.

The export of corn meal represents an opportunity to generate more income for companies in the sector, says Unem. “DDG/DDGS can account for around 20% to 25% of the ethanol industry’s revenues, ensuring the long-term continuity of the business. The ethanol, meal, and corn oil chains can generate an added value 60% higher than the raw grain”, explained the entity in a press release.

Source: Globo Rural

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