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Saudi Importers Cast an Eye on US Sorghum, DDGS

by 5m Editor
23 July 2009, at 6:59am

SAUDI ARABIA - US Grains Council consultant John Miller, Southwest Agribusiness Consulting Inc., and USGC Regional Director in the Middle East and Subcontinent Joe O'Brien travelled to Saudi Arabia last week to discuss the buying and logistics of US distillers dried grains with solubles (DDGS) and sorghum with influential players in the importing industry.

“Logistics for a free flow of sorghum and DDGS would mean prices are feasible, and ships can be loaded with corn, sorghum and DDGS without extra loading costs or expenses,” remarked Mr O’Brien. “We have our work cut out for us.”

The request to include a feed product to the subsidy list comes from domestic feed importers through official letters addressed to the Minister of Agriculture. The National Feed Committee, made up of the Ministers of Agriculture, Water, Commerce and Finance, evaluates the feed or feed ingredient for its protein and calorie content and decides whether or not to include it on the subsidy list.

Importers can also ask the government to review subsidy calculations, given they have strong reasons.

“There is a high level of interest in the use of DDGS in Saudi Arabia. Feeding industry leaders are just now becoming aware of some of the studies and trials of DDGS use in animal production,” said Mr Miller, who conducted one-on-one consultations and seminars with industry leaders.

“Due to its comparative availability and price, industry leaders across the board feel this is a commodity worth looking into for the feeding sector there.” The Council will continue to work within this market to ensure KSA remains a consistent customer of US grains and co-products.

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