Brazil’s corn industry is discovering DDGS
In Brazil they call it ‘grão dourado’, or the ‘golden grain’ – corn. Over the last decade, new opportunities for corn have emerged in the country, enabling it to be valorised even more: by turning corn into ethanol for fuel consumption and selling its by-products as animal nutrition. Poultry World travelled to Mato Grosso state to learn more.
Without a doubt, one of the most dynamic business sectors in Brazil’s agro-industry is that of corn biorefinery. In just 7 years since the 2017-2018 crop season, the corn biorefining industry has managed to grow its production more than 12-fold. In that time, Brazil’s corn ethanol production has surged from 520 million litres to 6.3 billion. The country expects this growth to continue over the next decade and to at least double again to 14 billion litres.
This vast increase is related not so much to Brazilian agricultural policy initiatives or massive subsidy programmes, but rather can be explained by 2 concurrent developments. The first of these is the energy transition in the transport sector, i.e., the use of ethanol instead of fossil fuels. Brazil’s biofuel consumption has traditionally been relatively high – at about 25% of all transport fuels. Most of the cars in Brazil, for example, are equipped with flexible fuel systems that are capable of using both ethanol and gasoline. For a long time the most common biofuel in Brazil was ethanol derived from sugar cane. Since the 2016-2017 crop season, however, corn ethanol has emerged and risen from virtually zero to capture 20% of the vast Brazilian biofuel market in 2024.
A second reason for the massive success of corn biorefineries relates to an awareness of the need to valorise its by-products. Feed components can also be made from the by-products of corn ethanol production, such as distillers’ dried grains (DDG) as well as distillers’ dried grains with solubles (DDGS).
With the growth of ethanol biorefineries, the production of both DDG and DDGS also jumped in Brazil, from 530,000 tonnes in 2018 to 3.63 million tonnes in 2024. Guilherme Nolasco is president of Brazil’s National Corn Ethanol Union (UNEM). He says: “The world currently consumes 117 billion litres of ethanol annually and is projected to reach 300 billion by 2030, for use in vehicles, airplanes with sustainable aviation fuel and ships, in addition to the growing demand for animal protein and other products.”
The ‘golden grain’
The year 2024 is not considered in Brazil to be a very good year in terms of harvest. Even in a ‘bad’ year, however, Brazil’s corn harvest is expected to reach 112.7 million tonnes, up 54.4% from a decade ago. That upward trend is expected to continue. Based on official projections by Brazil’s Ministry of Agriculture and Livestock (MAPA), the country’s production will reach 176.9 million tonnes by crop season 2032-2033. A forecast that makes sense when considering that corn will be used not only for food and feed purposes but also to produce ethanol, corn oil, DDG, DDGS and other by-products. Every tonne of the ‘golden grain’ can produce 450 litres of ethanol, 212 kg of DDG or DDGS, and 19 litres of corn oil.
Corn is now Brazil’s second crop after soybeans. The favourable climate means that Brazilian farmers can grow 3 crops a year in the same area. In Mato Grosso state, for instance, in the central-west region bordering Bolivia, farmers can harvest soybeans, corn and a third crop of choice on the same land in one year. A corn crop typically takes up less space than soybeans, Nolasco explains. “Currently, only about 60% of the first crop area (soybeans) is needed for a second crop (corn). In Mato Grosso state, this is around 20 million hectares. The conversion of degraded pasture land could bring another 26 million hectares into this cycle.”
Addition of factories
The forecast of increasing the corn supply, combined with the demand for green biofuels and sustainable foods, has led to a real boom in refineries dedicated to grain processing. According to UNEM data, there are currently already 21 plants for corn biorefining in Brazil – the vast majority (over 80%) having emerged in the last 5 years. Of this total, the lion’s share (18 refineries) can be found in the central-west region, including Mato Grosso state. There is also one to be found in the south (the states known for pig and poultry production), while another is located in the south-east (the region including the cities Rio de Janeiro and São Paulo), with one located in the north-eastern region.
The emergence of more refineries will continue, as another 9 plants are about to be taken into use – including 5 more in Mato Grosso state. In addition, UNEM states that at least another 11 plants are in the planning stages. For this feature, Poultry World visited various plants in Mato Grosso state, including FS Bioenergy in the town Lucas do Rio Verde.
DDG world market
Corn ethanol plants produce both DDG and DDGS, which are considered high-quality alternatives for use in animal production: this includes pigs, poultry, beef cattle, dairy cows, sheep, fish and pets. Nolasco says: “DDG and DDGS are strategic and advantageous alternatives for farmers, whether for the intensification of animal production, conversion of degraded areas, or adding value to corn by-products.”
Currently, the US dominates that market as it is the largest corn ethanol producer, where its DDGS exports exploded from 5 million tonnes in 2009 to more than 11 million tonnes exported to 58 countries in the season ending 2023. Mexico purchased the bulk of that amount, buying more than 20%, while South Korea took second position. Vietnam, Indonesia and Canada completed the list of top-5 importers for the season ending 2023.
In comparison, in 2024, Brazil is producing about 4 million tonnes of DDG and DDGS and is expected to export between 800,000 and 1 million tonnes. To illustrate the potential, the country’s feed production amounts to about 83 million tonnes.
Global market for Brazil’s produce
Nolasco says that Brazilian DDG and DDGS products are already being shipped around the globe, with exports to Indonesia, Japan, New Zealand, South Korea, Spain, Turkey and Vietnam, while China is also expected to open its market soon for Brazilian DDG and DDGS products. Future shipments could provide further opportunities for Brazil to expand its global position in animal husbandry. It could help to produce even cheaper and better domestically and, at the same time, help to provide better products worldwide.
Nolasco concludes: “Therefore, we see the DDG and DDGS market is an investment strategy. We didn’t have a production chain previously, but today we do. We believe that DDG and DDGS could represent up to 25% of the corn biorefinery business.”
Feeding corn by-products to poultry in practice
The Lucas do Rio Verde municipality in Mato Grosso state is one of the most impressive agricultural cities in Brazil. With over 80,000 inhabitants, the city houses the headquarters of large farms, including the largest unit of Brasil Foods (BRF) and a DDG company called FS.
Mano Júlio Farm illustrates the integration system in poultry farming that has made the country one of the most competitive in this sector worldwide. The property utilises the technological package of BRF, which includes the adoption of genetics, nutrition (with the addition of DDG), environment, health, biosecurity and management, provided by the multinational company. Luís Pelle, the poultry production manager at Mano Júlio Farm, oversees operations across a 200 hectares that is a benchmark in genetic multiplication poultry farming and broiler production. Since its inauguration in 2007, the farm has maintained an impeccable record for biosecurity and productive efficiency.
Mano Júlio Farm includes in its animal feed Gold DDG from the company FS, also located in Lucas do Rio Verde. The concentrate is a feed product generated by the drying process of wet corn bran with solubles which, despite being low in protein, is highly energetic. According to FS, poultry farmers should use the following recommendations for each phase: broiler chicken/starter, up to 9%; broiler chicken/grower, 5-13%; broiler chicken/finisher, 11%-15%; laying hens, up to 16%.
Genetic multiplication
Mano Júlio Farm is divided into 4 genetic multiplication nuclei, containing 20 sheds that house 60,000 hens and 7,000 males in each nucleus, totalling 300,000 layers and 35,000 males. This sector is dedicated exclusively to hatching eggs, an essential product for other BRF-integrated producers in the region, one of the largest food companies in the world. The annual production reaches an impressive 45 million fertile eggs. The poultry farm uses Ross layer breeders, one of the most highly regarded genetics houses due to high efficiency.
Broiler production
In addition to hatching egg production, the Mano Júlio Farm also excels in broiler production. In 16 sheds, the unit raises 360,000 broilers every 45 days. The production process is meticulously controlled, resulting in a feed conversion ratio of 1.541 kgs for each kg of chicken produced. “This efficiency is essential to maintain the competitiveness and sustainability of the operation,” explains the farm manager.
Biosecurity standards
Biosecurity is a key aspect of the Mano Júlio Farm. The stringent standards implemented include the practice of sanitary downtime, ensuring that no flock of birds comes into contact with potential pathogens. “We have not had any health incidents since our inauguration in 2007,” notes Pelle.
To avoid any form of contamination, the farm has a 0% limit for salmonella and strictly restricts contact between the birds and other animals, including pets. “For example, we cannot hire employees who have pets,” explains Pelle, reinforcing the farm’s commitment to biosecurity.
Integration with BRF
The Mano Júlio Farm operates under the BRF integration system, ensuring a continuous flow of production and distribution of fertile eggs to other integrated producers in the region. With a dedicated team of 70 employees, the farm sustains a production level that meets market demand and significantly contributes to the food production chain in Brazil. The excellence of Mano Júlio Farm is not limited to impressive production numbers. Efficient management, biosecurity standards and a commitment to quality have made the farm a benchmark in the poultry sector.
Pelle and his team demonstrate how to combine productivity, sanitary safety and sustainability in a large-scale operation. “With a keen eye on the future and an unwavering commitment to quality, Mano Júlio Farm remains steadfast in its purpose of being a leading example in Brazilian poultry farming,” he says.
BRF largest unit
Integrator Brasil Foods is omnipresent in the city. The BRF facilities here are among the largest in Brazil, including a large processing plant for both pigs and poultry, in addition to a feed facility. The processing plant currently processes 300,000 broilers daily and will increase its capacity to 450,000 by 2025, counting on 42 integrated farms to provide that volume. Sidney Silvestre da Silva is the agricultural coordinator at the BRF unit. He says: “We had a break in exports to China until re-certification in 2023. Recently there has been another exciting milestone here: approval to export to markets in the United Kingdom.”
Silvestre da Silva says that the BRF feed plant produces more than 3,100 tonnes of feed meal per day, using 250 tonnes of DDG concentrates daily in its formulation. Its storage capacity extends to 145,600 tonnes. “DDG produces an excellent result due to the production method we now have for pelleted feed. It adds more protein to the feed pellet, improves digestibility, and the animal adheres to and accepts the DDG incorporated in the diet well. Lucas is a unit with the best conversion rate in the company,” he concludes.
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