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Expect more matchmaking at this year’s IDGC

Posted: August 18, 2008 at 10:53 AM CST

Last week, I had an opportunity to interview U.S. Grains Council Special Assistant Erick Erickson about the state of the international distillers grains market and the upcoming International Distillers Grains Conference & Trade Show. He explained that the tremendous growth of the distillers grains export business has been driven by rising global demand for feed ingredients need to produce meat, milk and eggs for the planet’s growing middleclass.

In fact, Erickson said, the growth of distillers grains exports has been most marked in Asia and Mexico, while traditional markets in Europe have “dropped to almost zero” because of issues with biotechnology. “Growth has been in markets that are essentially new—new players, new buyers,” he said, explaining that the council’s efforts over the past three to four years are paying off.

Here are a few examples of the work the USGC is doing.

Recently, feed nutritionists from the Dominican Republic were given a chance to learn about the use of distillers grains at a promotional workshop hosted by the USGC’s Mexico and Central America office in cooperation with the Mexican Association of Animal Nutrition Specialists. A similar workshop was held in Japan back in May that could open some doors for DDGS in that part of the world. Erickson says these are the types of things that really seem to make a difference in gaining a global market share for DDGS. Another example is USGC member Hawkeye Gold, an Ames, Iowa-based corn ethanol producer, announcing that it will ship 46-metric tons of DDGS to an Australian feed supplier for dairy feeding trials later this month. Coincidentally, the initial conversation that led up to this deal took place at last year’s International Disitllers Grains Conference in Illinois.

The USGC, along with the USDA’s Foreign Agricultural Service, will once again sponsor the attendance of approximately 140 major foreign buyers, nutritionists, and feed ingredient importers at this years IDGC in Indiana. Bringing buyers and sellers together is where the council really shines. In fact, it is the USGC’s single mission to build markets for U.S. coarse grains—corn, sorghum and barley—and their products, which includes distillers grains. Creating effective forums and networking opportunites like the IDGC is a vital component of that end-goal.

“Ulitmately the matchmaking has to take place,” Erickson says. “The buyers and the sellers have to meet each other. They have to get to know each other. They have to become comfortable with each other as a partner over time. That doesn’t happen with a single meeting but it can start with a single meeting—and that’s what’s so important about this conference. We’re bringing the biggest major potential buyers of distillers grains from around the world to meet the U.S. companies that are interested in selling to them. It’s the beginning of a process that may result in sales—right there at the conference … in a couple of weeks … a couple of months … or a year.”

Aside from what takes place in the hallways at this year’s conference, BBI International is helping the IDGC put together another exciting, jam-packed program this year. The agenda includes presentations on topics ranging from supply and demand to shipping and transportation to corn fractionation and even biotech issues .

What does Erickson expect to be the hottest topics at this year’s conference?

“I can’t help but think everyone will want to know what’s going to happen with supply and demand and prices,” he said. “Prices have been so volatile and so high that expect to see a lot of questions related to people trying to position themselves to the uncertainty of the near future. … Transportation and logistics—the mechanics of moving distillers grains from here to there—is going to be another big topic.”

You can find more information about the International Distillers Grains Conference & Trade Show online at www.distillersgrainsconference.com, where you’ll find the agenda, information about the trade show, registration, sponsorship and accommodations.

-Tom Bryan