Council Efforts See Consummation: Saudi Arabia Importing DDGS

The U.S. Grains Council, in August 2011, successfully achieved the inclusion of distiller's dried grains with solubles (DDGS), corn gluten feed and other U.S. commodities on the Saudi Arabian import subsidy list. Inclusion on this import subsidy list is essential in eliciting interest from Saudi importers of these products. This effort paid off when a Saudi Arabian company, ARASCO, purchased a bulk shipment of U.S. DDGS destined to reach Saudi Arabia in January 2014.

"With DDGS on the import subsidy list, the Council has undertaken a broad-based effort to educate Saudi feed millers, poultry and livestock producers about this corn co-product," said Cary Sifferath, USGC regional director in the Middle East and Africa. "This bulk shipment of DDGS to ARASCO creates excellent opportunities for future U.S. exports to Saudi Arabia."

ARASCO also purchased 150,000 metric tons (5.9 million bushels) of U.S. corn for delivery split between January and February 2014. Saudi Arabia has been a steady buyer of U.S. corn. Al Maria, the largest dairy company in Saudi Arabia and a major processor of dairy and other food products for the Saudi and neighbouring Gulf region countries, has remained a reliable customer importing a vessel of U.S. corn about every 45 days.

The Council has been active in Saudi Arabia for more than 30 years, with its current focus on rebuilding and sustaining Saudi confidence in food security through trade. In the 2011/2012 marketing year, Saudi Arabia imported 2.5 million tons (98.4 million bushels) of corn, with U.S. corn accounting for 18 percent of the market.