Council Training Programs Help Indonesian Poultry Farmers IncreaseDDGS Purchases

The resurgence of COVID-19 in Southeast Asia and related restrictions presented many
constraints for the U.S. Grains Council’s in-person programming in 2021. Nevertheless,
the Council remained committed to maximizing distiller’s dried grains with solubles
(DDGS) inclusion rates in both layer and broiler rations by educating Indonesian buyers
on the animal health benefits that DDGS provides and the cost savings for producers.

In the MY 2020/2021, Indonesia was Southeast Asia’s second-largest importer of U.S.-
origin DDGS at 910 TMT. Recognizing there was room for additional growth in DDGS
demand, the Council conducted a series of feed formulation training targeting
Indonesian poultry farmers, covering topics relating to layer farms and the benefits of
incorporating DDGS in feed rations.

The series discussed the technicalities of feed formulations in West Sumatra and how
DDGS improves animal performance and reduces feed costs. A revised poultry feed
formulation, including DDGS introduced by the Council’s regional technical consultant,
reduced overall feed costs for local growers by five to six percent. As a result, one
farmer in attendance fully adopted the revised formula, increasing demand for DDGS by
10 TMT per year, successfully lowering overall costs while improving egg production on
his farm.

Another feed formulation training was conducted in Blitar, East Java, drawing an
audience of more than 20 poultry farmers. The Council’s consultant provided information
on feed formula revisions with the potential to reduce farmers’ existing feed costs by at
least three percent, resulting in an additional 7 TMT of DDGS demand per year.

This program highlights the importance of continuing to educate farmers on the
commercial advantages of DDGS while remaining flexible in adjusting feed formulations
to reduce costs when necessary. The Council is well-positioned to keep its Indonesian
buyers informed and educated on the latest benefits of adopting DDGS as an alternative
feed ingredient and efficient cost-saving instrument.

The Council invested $1,500 of Market Access Program (MAP) funds to support this
engagement. As a result, participants increased purchases of DDGS by 17 TMT, valued
at $4.1 million dollars, which results in a return on investment of $2,700 per $1 of
MAP funds invested.