Market Trends of India DDGS Feed Industry
Rising Consumption of Rice-based DDGS Feed
The consumption of rice-based Distillers Dried Grains with Soluble (DDGS) is rapidly increasing as it serves as an excellent alternative protein source in animal feed. Rice DDGS is a byproduct of the ethanol production process, where rice is used as a raw material. It is an effective substitute for traditional protein sources like soybean meal, groundnut cake, and mustard meal, offering a cost-effective and nutritious option for poultry, cattle, and aquaculture diets. This makes rice DDGS a versatile ingredient, supporting the protein needs of various livestock sectors.
In cattle feed, rice DDGS accounts for at least 20% of the total feed composition. This inclusion not only maintains milk production levels comparable to traditional feed mixes but may even enhance them. In poultry feed, the addition of 5-8% rice DDGS contributes to excellent meat and egg quality. Furthermore, a conservative inclusion rate of 3% in aquaculture feed significantly reduces the cost of production without compromising feed quality, making it an attractive option for fish farming. The USDA reports that India produced 206.8 million metric tons of rice in 2023, up from 203.6 million metric tons in 2022, ensuring an ample supply of raw material for DDGS production.
Rice DDGS is gaining wide acceptance in the Indian feed industry due to its nutritional benefits. It is an excellent energy source, rich in essential amino acids, and contains high levels of protein while maintaining a low fiber content of around 2-3%. The cost-effectiveness of rice DDGS makes it an appealing choice for farmers, as it reduces feed costs and increases profitability, particularly in poultry farming. Its versatility and nutritional profile have positioned it as a key ingredient in modern livestock feed formulations.
As awareness of its benefits grows, the demand for rice DDGS is anticipated to rise significantly in the coming years. With its potential to improve feed quality while lowering costs, the rice DDGS market is poised for exponential growth, driven by its expanding use in poultry, cattle, and aquaculture feeds across India.
Increasing Demand of DDGS in Poultry Feed
India ranks among the world's major poultry meat producers. The country has experienced a surge in poultry demand, driven by increasing average incomes and urban population growth. According to the Agricultural & Processed Food Products Export Development Authority (APEDA), India's poultry meat consumption reached 4.41 million metric tons in 2023, an increase of 0.16 million metric tons from the previous year. Additionally, the Food and Agriculture Organization (FAO) reports that India produced 138.38 billion eggs during 2022-2023. This rising poultry consumption, combined with high grain and meal prices, is promoting the inclusion of Distillers Dried Grains with Soluble (DDGS) in poultry diets.
The incorporation of DDGS in Indian poultry feed is a relatively recent development. Its inclusion offers multiple benefits, including improved animal health, enhanced performance, and better food product quality. In poultry production, feed constitutes 65-70% of total production costs. Given the significant gap between poultry feed demand and availability in India, industry stakeholders are exploring new, cost-effective feed ingredients. DDGS, a co-product of ethanol production from fermented grains, contains concentrated nutrients such as protein, fat, fiber, vitamins, and minerals, making it a viable and economical alternative for supplementing both protein and energy in feed.
DDGS has been identified as a valuable source of energy, protein, water-soluble vitamins, and minerals for poultry. Studies have shown that incorporating DDGS in diets can improve growth rates, feed conversion, fertility, and hatchability in poultry. Companies like Prodigy Foods, a manufacturer and supplier of poultry animal feed, are focusing on producing high-nutrition and high-quality Rice DDGS or Corn DDGS for the livestock industry, reflecting the growing importance of this feed ingredient in the sector.
