USGC to Lead DDGS Feedlot Demonstration in Canada; Increased Demand for US DDGS Expected to Follow

As North America increased the production of fuel from renewable sources, ethanol production surged, simultaneously producing considerable volumes of the co-product distiller’s dried grains with solubles (DDGS). The U.S. Grains Council believes DDGS has the potential to produce finished cattle with improved carcass quality, due to its bulk density and oil content.

In an effort to validate the quality of DDGS, the Council has joined forces with several industry parties to facilitate a DDGS demonstration at a commercial feedlot in Alberta, Canada. The Canadian feedlot industry currently utilizes inclusion rates of 15 percent to 20 percent U.S. DDGS. The demonstration aims to support small scale research conducted at the University of Saskatchewan which has shown significant feed efficiency improvements due to increased corn DDGS inclusion rates of 30 percent and 40 percent.

According to Neil Campbell, USGC consultant in Canada, the demonstration will begin in March. It will include inclusion rates of 20 percent, 30 percent and 40 percent and will be fed to approximately 5,000 cattle. “Canada is the number two market for U.S. DDGS exports, importing 803,674 metric tons in 2009,” Campbell said. “The successful demonstration of these higher inclusion rates is expected to increase the demand for U.S. DDGS by 200,000 to 300,000 tons.”

Throughout the demonstration, the Council will work closely with nutritionists Darryl Gibb and Tim McAllister of Agriculture and Agri-Food Canada; Barry Robinson of Great Northern Livestock Nutrition Consulting Ltd. and with financial support from the Alberta Livestock and Meat Agency (ALMA); Rycom Trading; and Glacial Lakes Energy of South Dakota.

Written by Jodi Kiely, USGC Contributing Writer