Saudi Arabia is ramping up its purchases of the ethanol co-product distiller’s dried grains with solubles (DDGS) from the United States, according to the U.S. Grains Council.

Last month, Saudi buyers purchased 18,000 metric tons of U.S. DDGS, a relatively large amount and a dramatic increase from total sales of just 8,400 metric tons in 2014.

While the dairy and poultry sectors in Saudi Arabia are large and modern with an estimated annual compound feed demand of 6.9 million metric tons, the U.S. Grains Council’s (USGC’s) progress in persuading the Saudi industry to utilize DDGS has been limited by shipping distance and local subsidies that did not incentivize use of the product.

Now, those policies are changing, and DDGS is priced well in the market. As a result, Saudi buyers – and others in the region including in Egypt, Turkey, Morocco and Pakistan – are taking a closer look at U.S. DDGS.

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