
The growing use of DDGS (Distiller’s Dried Grains with Solubles) by the livestock sector will not be a threat to the soyameal industry, said Compound Livestock Feed Manufacturers Association (CLFMA of India) chairman Divya Kumar Gulati.
DDGS is a by-product of the ethanol production process that uses grains such as maize and rice as feedstock. In the recent months, the use of DDGS as a livestock feed is on the rise among the farmers. A good source of protein and energy, DDGS is considered to be a cost effective compared to the oilmeals.
The Government’s push to production of ethanol from grains has led to increase in production of DDGS, while posing a challenge to the solvent extractors. The growth in use of DDGS as livestock feed in the recent past has triggered concerns among the oil meal producers, particularly the soyameal industry, which is facing a decline in demand for their produce from the feed segment.
“DDGS cannot replace soyameal 100 per cent. It’s not possible for it to replace because of the nutritional profile. It can replace only up to probably 10 to 15 per cent maximum, provided the quality is good enough,” Gulati said.
The poultry industry in India, Gulati said is growing annually by 8-10 per cent. At the same time, the production of soyabean meal is not going up by 8-10 per cent every year, he added. “So at a certain point of time, the DDGS will not be a threat, but will run parallely only as a replacement for soyabean meal. It is not going to endanger the soyameal in any case because of the sheer growth of the poultry industry and the shrimp industry,” Gulati added.
In the poultry sector, the DDGS is being used more in the layer segment, where hens are raised to produce eggs for commercial consumption. However, in the broiler segment, which is focussed on producing chicken meat, the DDGS is not used much because of the high level of the aflatoxin content. Due to the various drying methods in the production process of DDGS, the producers are unable to control the aflatoxins in DDGS. That’s why there is a limitation of its use in the broiler industry, he added. Further, Gulati said DDGS in the wet form is also being used in the dairy sector.
The production of DDGS is on the rise following the increasing use of grains in the ethanol production. According to the Soyabean Processers Association of India (SOPA), the off-take of soyameal by the livestock feed segment was down by over 7 per cent in the first six months of oil year 2024-25 starting October. The soyameal off-take from the feed sector stood lower at 32.50 lakh tonnes during Oct-March, from same period last year’s 35 lakh tonnes. The decline in demand is largely attributed to the shift in preference of animal feed makers to the cost-effective ingredient of DDGS.
A recent Thought Leadership Report brought out by the Grain Ethanol Manufacturers Association and Primus Partners has made a pitch for developing a strong market for DDGS that will help secure the revenue stream for distillers making ethanol production more economically viable. “Import substitution through domestically produced DDGS will strengthen India’s animal feed supply chain increasing self-reliance and provide insulation from global market fluctuations,” the report said.
Published on April 18, 2025
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