In today’s interconnected global economy, international markets represent unique opportunities for expanding product reach. By unlocking global demand, companies can foster innovation and market growth.
POET is doing just that by executing a multi-pronged strategy to capture increasing portions of international markets for animal feed products. Within its suite of plant-based bioproducts, the company provides consistent, high-quality, and high-protein animal feed options to a growing base of customers around the world.
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In 2023, POET shipped more than 33,500 containers of bioproducts, exporting to 25 countries worldwide. Notably, those numbers made the company the 17th-largest container exporter in the U.S., up from 25th in 2022 and 36th in 2021. That growth is happening despite the fact that, overall, the export market for distillers dried grains (DDGS) has been roughly flat since about 2017.
“Our facilities are logistically situated to be in this market,” said Andy Lindsay, Director of Trading for POET. “We have put a lot of emphasis on developing it out.”
So, how has POET been able to capture larger parts of that market share?
Isaac Crawford, POET Vice President of Trading and Portfolio Management, pointed to the company’s in-person market development work. “Our growth has really been spurred by the notion to connect with more customers and have more direct relationships with buyers all around the
world,” he said.
Another important factor was POET’s acquisition of a major transload facility in the Port of Savannah, Lindsay said. Then there’s the company’s 2021 purchase of six additional bioprocessing plants, which added POET Corn Fermented Protein (CFP) to its bioproduct portfolio. “Ultimately, we’ve been able to see a lot of growth with the investment we’ve had in that space,” he said.
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Top: Andrew Baker at the Grain Market Outlook & Business Environment Seminar in Seoul, Korea; Bottom Left: Andy Lindsay and Ayhan Kindap in Antalya, Turkey; Bottom Right: Akram Babu and Brandon Hanson atop a pile of POET DDGS at Nourish Poultry in Bangladesh
Relationship building, logistics work hand in hand
In 2023 alone, POET conducted in-person market development in 17 countries: Portugal, Senegal, Mexico, Singapore, Austria, Philippines, Thailand, Vietnam, Indonesia, Ecuador, South Korea, Indonesia, Turkey, Saudi Arabia, Belgium, Morocco, and Canada.
“We travel to these countries for various trade shows and customer meetings,” said Lindsay. “They allow us to showcase our expertise and bioproducts, creating opportunities for greater access to these international markets.”
Market development is only one piece of the puzzle, however. “Part of it is going out and visiting with customers and getting in front of people to develop relationships and trust,” Lindsay confirmed. “The other portion of it is actually being physically able to execute on those contracts and those sales.”
One example of that work is in Mexico, a strong importer of U.S. DDGS. POET first opened up an office in-country in 2016, Crawford said. Today, POET de Mexico directly ships and distributes to multiple distribution facilities in the country. “The intent there was to find locations where there were customer bases that were aligned with our bioproducts to really create more local markets for POET production,” he said.
Lindsay highlighted POET’s 2022 acquisition of the transload facility in Savannah, GA, as key to helping the company develop and expand export markets. The facility is dedicated to transporting bioproducts produced at bioethanol plants, primarily POET plants. That means no cross-contamination issues for customers.
POET Terminal – Savannah is advantageous due to its location just a few miles from the Port of Savannah, access to two major railroads, and a vast number of containers available for export. “The logistics that you can manage through there is really what’s an advantage,” he said. “It helps keep the supply chain moving without a lot of disruptions.”
Austin Broin, General Manager of POET Terminal – Savannah, agreed with Lindsay. “Since POET acquired this facility, we’ve been able to significantly increase production at a steady rate while simultaneously making large investments into the site, our team members, and, as a result, the city of Savannah. From our first month in business to the spring of 2024, we nearly doubled our number of railcars transloaded into containers. It’s a true testament to the hard work put forth by both the POET – Savannah team and POET’s export sales team in continuing to grow this very important market and customer base.”
In comparison, competition for containers at inland locations like Columbus, Detroit, or Chicago can be fierce among the many companies looking to export products. “It can be tough to get the number and volume of containers that you want,” Lindsay said. “But if you’re at a port facility like Savannah, they have anywhere from 30,000 to 70,000 containers at the port at any given time.”
In addition, some export markets, such as Vietnam and Thailand, require fumigation prior to export. Transload facilities in the Midwest get too cold for that at certain times of the year, while Savannah is warm enough year-round, he said.
Expanding production of bioproducts
With the 2021 acquisition that grew POET by 40% virtually overnight and the 2023 reopening of its facility in Cloverdale, IN, the company now owns and operates 34 bioethanol production plants, with total DDGS production at seven million metric tons annually. Two of those plants, POET Bioprocessing – Shell Rock, IA, and POET Bioprocessing – Fairmont, NE, produce DDGS as well as CFP. “That is a product that really fits well into that export space,” Lindsay said.
In fact, a significant portion of the total CFP produced by POET goes to international markets, said Derek Balk, POET Director of High Protein Ingredients and Business Development. When the separation technology was installed at the two plants, it was estimated that each facility produced 300,000 tons of DDGS per year. By pulling out the CFP, each plant’s production shifted to about 75,000 tons of POET CFP and 225,000 tons of DDGs.
CFP is a 50-percent protein product produced by screening out both the yeast and corn proteins in whole stillage. That resulting concentration of nutrients has excellent energy and digestibility values, delivering key nutrients that are ideal for a variety of species.
"At POET, we strive to help you achieve your production goals — without sacrificing quality, performance, or economics," said Derek Balk, POET Director of High Protein Ingredients and Business Development.
In 2022, those two facilities received the Global Food Safety Initiative (GFSI) Food Safety Management System Certification (FSSC 22000). This globally recognized certification gives customers in the pet food, aquaculture, and other feed markets even more assurance that POET’s feed products have been produced and handled according to the highest food safety standards. The certification is something the company’s international customers look for, he said.
The growth in demand for CFP will come from the international markets, driven by growth in the aquaculture, poultry, and pet food producers. Aquaculture market, for instance, will continue growing in Southeast Asia, Central and South America, due to abundance of accessible water, labor and revenue from exporting seafood. While the U.S. aquaculture sector continues to struggle being competitive and grow production numbers, Balk said.
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Derek Balk at the World Ethanol & Biofuels Summit in Brussels, Belgium
While DDGS are typically used in lower-value species like carp and catfish, as they have lower protein needs and can tolerate higher fiber content, CFP is a better fit for carnivorous species, such as salmon, trout, and shrimp. With those higher-value species, fiber isn’t digestible and can result in negative health effects. As a result, CFP is well-positioned to help aquaculture producers decrease expensive products like soy protein concentrates or fish meal as a feed component.
The pet food market has great potential for growth for CFP. While the domestic pet food market is in a cycle trending toward grain-free products, POET doesn’t see that to be the case, for example, in Latin America or Southeast Asia. “We’ve got some positive movement in that area,” he said. “Pet food is a consumer-packaged good that goes into people’s homes, that brings with it a lengthy evaluation and approval process regardless of market.”
By venturing beyond domestic borders, POET has unlocked new growth, forged invaluable partnerships, and adapted to diverse consumer preferences and needs. Thriving in international markets demands more than just a passport; it requires strategic planning and a commitment to excellence — characteristics that POET is known for, both at home and around the world.
