USGC adds 3 new customers in Mexico for US corn distillers oil

By U.S. Grains Council | April 07, 2021

Using Agricultural Trade Promotion funds, the U.S. Grains Council’s Mexico office augmented its marketing efforts for U.S. corn distillers’ oil (CDO) in poultry rations, resulting in convincing three important poultry companies to import the product for the first time and spurring interest from other companies in the region.

Many Mexican poultry consumers prefer yellow-skinned chicken and a dark yellow egg yolk. Knowing this, the Council – in coordination with North Carolina State University – was successful in conducting research showing CDO, which contains naturally occurring plant pigments called carotenoids, could be used in poultry rations to achieve the look of chicken and eggs sought out by Mexican consumers.

Through this research and a partnership formed with QODSA, Mexico’s largest importer and distributer of CDO, the Council has been promoting the benefits of using CDO. Throughout 2019, the Council made one-on-one visits to major poultry companies and distributed marketing materials and feeding guides, including to companies like Bachoco, Grupo Pecuario San Antonio, Pilgrims, Crio, and Buenaventura.

Initially, there were six companies using CDO for energy content value but not recognizing the value of the pigment – Alimentos Pecuarios, ALIPEC, Industrial Pecuaria de los Altos, Loma Alta, Nu3, Rancho Lucero and Proan. Throughout the CDO promotion tour, the Council learned many of these company’s nutritionists would not consider pigment content of the CDO as an “advantage.” Still, they did consider the total carotenoid content of CDO an excellent source of antioxidants and, therefore, a promoter of a healthy immune systems in birds. The Council targeted its approach to capitalize on the existing use of CDO and to highlight the added value achieved in pigment cost savings.

After CDO promotion efforts in Guadalajara, the Council celebrated its first successes by convincing three important poultry companies to import the product for the first time. As a result of the promotional work, in October 2019, Avícola Quiñones  purchased 100 MT of CDO. At the end of November 2019, Buenaventura started purchasing 50 MT CDO per week. Then Nutry Pollo began using 66 MT per week. At an average price of $650 USD/MT, these purchases translate to $300,000 per month.

The Council has used $15,000 in ATP funds for CDO promotion thus far, with sales valued at $300,000 MT per month, or a net return on investment (ROI) of $19 per $1 ATP funds invested. If these sales continue, the ROI could exceed $225 per $1 of ATP funds invested on an annual basis.