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Biotech Traits Approved in EU Positive Move. Kurt Shultz, U.S. Grains Council director in the Mediterranean and Africa, said, “It remains to be seen when U.S. corn gluten feed (CGF) and DDGS (distiller’s dried grains with solubles) to the EU (European Union) will resume, but we are hopeful it’s soon.” This comment comes subsequent to the EU authorizing three types of genetically enhanced corn for food, feed, import and processing on Oct. 30. Two of the corn technologies were developed by Council member Monsanto Company, YieldGard VT Pro™ (MON 89034) and YieldGard VT Rootworm/RR2® (MON 88017). The third variety, Herculex® RW protection trait stacked with Roundup Ready® Corn 2 (also known as 59122/NK603), was jointly developed by Council members Pioneer, A DuPont Business and Dow AgroSciences LLC, a wholly owned subsidiary of the Dow Chemical Company. Corn products containing MON 89034, MON 88017 and Herculex RW protection trait stacked with Roundup Ready® Corn 2 (also known as 59122/NK603) are now permitted for import into the EU.
USGC Director of Biotechnology Programs Rebecca Fecitt said these decisions offer encouragement that sound science is moving towards the front of the line when decisions are made. “We are very pleased to hear these products have received approval in the EU, following the European Food Safety Authority’s positive opinions on the safety of these products,” said Fecitt. “There are still products awaiting review in the EU, and we hope they will receive approval soon as well.” Shultz said the good news is end-users and feedmillers in the EU want to resume imports of U.S. corn and co-products, especially DDGS and CGF. “There is no doubt our customers in the EU would like to import these corn co-products like they did prior to very strict regulations,” said Shultz. “It is hard to tell how this will all play out, considering each country in the EU has different testing procedures when it comes to biotech-derived products.” The final step in the approval process is publication by the European Commission. “We welcome the Commission’s decision to follow the independent scientific advice of the European Food Safety Authority,” said Jerry Hjelle, Monsanto’s vice president of Global Regulatory. “Moreover, these authorizations will provide market access for these products needed by European livestock producers. We hope for timely EU approvals for other existing and pipeline products.” Pioneer Hi-Bred President Paul E. Schickler said, “We are encouraged by this approval and look forward to continued progress of biotech approvals in the EU. We urge the Commission and EU Member States to similarly approve biotech crops for cultivation so Europe’s farmers have access to the same technologies as other farmers around the world.”
Possible New, Increased Markets for U.S. Sorghum in Taiwan, Japan. Alvaro Cordero, USGC manager of international operations for marketing, traveled to Taiwan and Japan last week to assess the market potential for U.S. grain sorghum. Cordero said increased opportunities for U.S. sorghum exist in Taiwan and Japan both in the food and feed industry, but there will need to be strategic marketing consideration for leverage over competing sources. Japan, the largest feed grains export market for the United States, imports approximately 19 to 20 million metric tons of feed grains a year. In 2008, the United States secured a 90 percent market share, a slight increase from the 87 percent market share it had in 2007. “Of all Japan’s feed in production, 7 percent is grain sorghum. There is plenty of room to grow,” said Cordero. In 2008, Japan imported 1.1 million tons (43.3 million bushels) of sorghum, 47 percent of which coming from the United States. “Japan is increasingly becoming more price sensitive and is sourcing from other origins. We need to reeducate end-users on the quality of U.S. sorghum and its benefits in relation to price and bottom lines,” he said, adding that there is also interest in incorporating sorghum within the food industry. “While Japan already uses sorghum in food, both countries seek factual research for food product development to increase their current usage. The China Grain Products Research and Development Institute in Taiwan is set up for such research and allows for a better introduction of the product. They conduct trainings for food and restaurant chain industries to introduce new recipes and better blending techniques.” Due to limited natural resources, Taiwan depends heavily on foreign trade. U.S. agricultural products account for more than 30 percent of Taiwan’s agricultural import demand. U.S. agricultural exports total about $3.5 billion annually, making Taiwan the United States’ sixth-largest agricultural export market. “Taiwanese feed manufacturers are not currently using sorghum in their rations. There is a lack of actual virtues of sorghum as both an energy source and protein provider. There is still the belief that tannin causes digestibility problems, which is untrue, and it is almost new news to the marketplace that U.S. sorghum is tannin free. There is initial interest from the Taiwan Feedmillers Association to run trials for consideration of future imports,” said Cordero, adding Taiwan has an extensive Livestock Research Institute with well-established stations around the country capable of assisting and advising on the analysis of sorghum in their rations. USGC Director in Taiwan Clover Chang said, “The young generation of nutritionists in Taiwan have no experience in using grain sorghum. We have to educate them on the characteristics and advantages of U.S. grain sorghum. Due to the proximity of other competitive sources, the Council’s Taiwan office will provide timely market information on the production, supply and demand, inspection, shipment, applications, etc., of U.S. grain sorghum and co-products in order to show local traders the quality of U.S. sorghum compared to competitors. We will also demonstrate the United States’ ability to meet demand both domestically and worldwide.” Click here for audio.
Sharing Information Minimizes Trade Barriers. Trade policy and biotechnology are often referred to as being the most common barriers to free and open trade of U.S. coarse grains and their co-products. Often off the radar screen, according to U.S. Grains Council President and CEO Ken Hobbie, is the anxiety created from uncertainty that can often cause trade barriers. “We are hearing a lot of concerns from global customers regarding the challenges facing U.S. farmers and potential issues with grain quality,” said Hobbie, who recently returned from the USGC Asia Marketing Mission to China, Japan, South Korea, Malaysia and Singapore. “It is a well-known fact U.S. farmers are having trouble with this harvest season. However, these issues cause a great deal of fear worldwide when we allow them to go unaddressed. We informed our Asian customers of the reality but also shared with them the little-known fact that farmers are equipped to minimize quality concerns and are doing everything possible to do so. We shared with them very specific methods being used by U.S. growers to confront the quality issue head-on.” Mike Callahan, who also participated in the recent mission, said the quality issue was raised last year as well. “The quality concern is not new,” said Callahan. “This is an escalation of a concern that was present last year. The volume is just getting louder.” Callahan said customers are worried this is the “new norm” for U.S. corn. “We assured them this couldn’t be more distant from the truth. It is certainly not the new norm. Farmers are at the mercy of the weather but will take measures to preserve grain quality the best they can.” Hobbie said meeting face-to-face with top customers of U.S. feed ingredients allowed for concerns to be addressed. “Nothing works better when it comes to easing concerns of our customers than knowing them on a first-name basis. It’s called trust. When you have customers such as Korea that purchases more than 90 percent of their corn needs from the United States, it is absolutely essential to have open conversations about these issues. Listening and sharing is simple but not to be taken for granted.” Hobbie and Callahan also expressed optimism regarding the outlook for U.S. distiller’s dried grains with solubles (DDGS) in Asia. “As we continued our trip we heard more positives about the market outlook for DDGS. Everyone we talked to noted the lower inclusion rates of DDGS in livestock rations and the opportunity for further expansion of use based on training and further industry experience with the product,” said Hobbie. Callahan said China is one example of a success story for DDGS, a co-product of U.S. ethanol production. “In just one year, China went from purchasing 8,000 tons of DDGS to 200,000 tons. We expect China to turn into a million ton market for distiller’s grains in the near future,” he said.
Southeast Asian Team Explores Grains Transportation. The container shipping industry is facing tough economic times as a result of the worldwide recession. Those depending on container shipments to import goods have focused their attention on the industry, anticipating what the future holds with regards to price and capacity for shipments. A majority of the corn and corn co-product shipments make their way to Southeast Asia (SEA) via containers. With the increasing demand for imports of these products in the region comes an increased interest in the grains transportation element of the import business. The U.S. Grains Council, in cooperation with the American Soybean Association, hosted a team of Southeast Asian importers to the United States to address these transportation concerns, while establishing valuable relationships. The team consisted of 33 executives representing 29 companies from Thailand, Indonesia, the Philippines, Vietnam, Malaysia, New Zealand and Singapore. According to Adel Yusupov, USGC regional director in Southeast Asia, the team accounts for the annual importation of 174,000 metric tons of distiller’s dried grains with solubles, 260,000 tons (10.2 million bushels) of corn, 42,000 tons of corn gluten meal, 2.3 million tons of soybean meal and 1.6 million tons of soybeans. This is the second year the two organizations hosted such a team to the United States and to the Global Soybean and Grain Transportation Conference in New Orleans. Yusupov said, “The sponsoring of this team is twofold. First, to provide a suitable venue for U.S. exporters to meet with SEA importers, facilitating the establishment of buyer-seller relationships and ultimately sales. Secondly, to educate our customers on the latest trends in the bulk and container grain transportation markets.” The team’s travels conclude Friday with the opportunity to meet with Council members, North Star Grain International LLC; J.D. Heiskell & Company; Bunge North America Inc.; Furst-McNess Company; The Scoular Company; Consolidated Grain and Barge Co.; and Brea Commodities.
Now Let’s Move onto Scientific Discussions By Mr. Yoshinori Sakaguchi, Editorial Writer for Sankei Shimbun (Japanese Newspaper) Translated by USGC/Japan Cultivation of genetically enhanced crops such as corn and soybeans, including those that contain genes contributing to an increase in food production, is rapidly expanding throughout the United States and South American countries. In Japan, however, they are not grown for commercial purposes. Japan is an importer of a large amount of biotech crops as raw materials for livestock feed and vegetable oils but not for other foodstuffs, due to consumers’ negative reaction to biotech crops. Will the difference in people’s reactions to biotech crops between the United States and Japan affect the stable food supply in the future? I traveled to the United States, the world-largest food exporter, as part of the U.S. Grains Council’s Japan Biotech Media Team. We visited the farm of Keith Witt, a farmer who grows biotech corn and soybeans in Missouri. It is the biotech crops that allow him to complete all operations on his 1,200 hectares (3,000 acres) farmland, almost equivalent in size to 260 Tokyo Domes, with only his first son and two other workers. Biotech crops have reduced the workload. His corn contains two types of genes: one that prevents insects from eating leaves, stalks and roots, and the other which has a resistance to herbicides applied for weed control. These genes have reduced the necessity to frequently enter the fields, resulting in far less pesticide consumption, and furthermore, enabled no-till cultivation, which requires no tillage and eliminates the possibility of soil erosion. Additionally, the biotech crops provide him more yield and profit. “The poison used to kill the insects is a protein. Only the insects can digest it and get weakened. There is no effect on other animals,” says Witt with confidence. As a measure for environmental conservation, he established refuges in which he plants non-biotech corn in order to prevent emergence of pesticide-resistant insects, under the instruction of the U.S. Environmental Protection Agency. Next year Monsanto, the world’s largest seed producer, will place in the market the world’s first corn containing as much as eight genes related to insect and herbicide resistances, which minimize insect damage. The company researched and developed draught-resistant corn in response to the concern about global water resource insufficiency, which is now in the pipeline. Mike Edgerton, Monsanto’s director in charge of the development of the new corn, said, “Repeated breeding could not provide corn protection against insects and weeds. That resulted in biotech crop development. We will contribute to developing agricultural industries by combining conventional breeding technologies and improving agricultural technologies.” He regards biotech technologies as one method for sustainable agriculture. The U.S. Grains Council reports biotech corn planted areas have been increasing throughout the United States, exceeding 80 percent of the total corn areas. Since Japan, whose self-sufficiency rate of corn is almost zero, imports 95 percent corn from the United States, and the percentage of biotech corn is expected to rise. In these circumstances, Japan permits importing and planting biotech crops through examination based on the Cartagena Protocol that specifies the guidance on safety evaluation of biotech crops from the viewpoints of health and environmental issues. However, they are not virtually planted, partially because some local governments establish ordinances to rule them out for the concern about cross-fertilization. A sharp increase in demand for grain crops, including feed crops, is expected due to the worldwide population explosion and the eating habit change in developing countries following the economy growth, as more meat is being consumed. As one measure for addressing this issue, biotech crops can be a promising solution. Japan has expertise that could allow it to become a world leader in this field of study. It is important for this country to provide scientifically correct information and deepen the discussions about the safety of biotech crops. It is also required to study the evaluation criteria in consideration of actual circumstances of Japanese farm businesses that are small in size compared to those of the United States. Korean Media Team Studies U.S. Biotech Development. Sponsored by the U.S. Grains Council, a team of five news reporters and two university professors from Korea traveled to the United States this week to study how agricultural biotechnology is used in the United States. With very little understanding of the science involved, some Korean consumers have a negative attitude toward the use of biotechnology in food. Rebecca Fecitt, USGC director of biotechnology programs, said, “It is important that we reach out to the Korean consumers to inform them of the facts behind biotechnology. What better way to do that than to invite the people who write their daily news. The Council’s international biotech media teams have been a big help in getting the facts to the general public. A few months ago, the Council brought in a media team from Japan and those participants are beginning to write more positive and factual stories about biotechnology.” Korea has historically been the world’s second or third-largest feed grains import market for the United States, capturing 81 percent market share in 2008. South Korea is currently the third-largest U.S. export market for corn, importing 5.2 million metric tons (204.7 million bushels) in the 2008/2009 marketing year, and the fourth-largest U.S. distiller’s dried grains with solubles market, importing 280,000 tons. “This travel was an invaluable opportunity for me to see the overall grain production system in the United States, the world’s largest supplier of agricultural products. I could feel their pride and conviction for their jobs in the meetings with U.S. government officials, biotech developers and managers of grain transport facilities,” said Hyeonju Beom, a reporter for the Korean Newspaper, Naeil News, and participant on the trip. “Also, I found the efforts of biotech developers to improve yields extended beyond just interests of their own country.”
Barley Mission Reveals Growth Potential for U.S. Barley Exports. A team of U.S. barley farmers traveled to Taiwan and Japan this week, affording them the opportunity to showcase their product to two strong and continuously growing markets, while learning the demands of their customers. Dan Mader, Idaho Barley Commission; Mary Sullivan, Washington Barley Commission; Greg Kessel, North Dakota Barley Council; and Leonard Schock, Montana Wheat & Barley Committee, represented U.S. Grains Council barley sector members on the Council’s Barley Mission. The team kicked off their travels in Taiwan, bringing the “heart healthy” message of U.S. high beta-glucan barley to importers and other end-users. As Taiwanese consumers have become increasingly more health-conscious, the utilization of U.S. high beta-glucan barley in everyday food items has seen a significant increase. Team members were able to taste a handful of these items during a visit to the China Grain Products Research and Development Institute, realizing the further development of more barley-rich recipes will only increase the demand for U.S. barley. C.M. Lynn, USGC senior advisor in Taiwan, predicted the Taiwan food barley market has the potential to import 350,000 metric tons (16.1 million bushels), at minimum. Lynn said, “Through this experience, the team members were able to hear firsthand what the customers are looking for in food barley.” In Japan, the United States’ number one market for barley, team members were faced with the end-users’ concerns about a stable supply of barley. “While the end-users showed concern over the declining acreage of U.S. barley, they assured us that barley is vital to the livestock industry and they would continue to turn to the United States as their supplier. At the same time, we were able to assure them that although planted acreage has declined, ideal growing conditions have allowed us to partially offset the potential loss in yield through increased production per acre,” said Sullivan. Japan has been consistent in its demand for feed barley for many years, with total imports staying around 1.4 million metric tons (64.3 million bushels) annually. “Barley is an important feed ingredient for the Japanese livestock industry. Barley is essential for finishing feed for Wagyu beef cattle, as it helps in the marbling of the high-end beef. The Japanese feed industry expressed its high expectations to the delegation to continue providing high-quality feed barley to Japan,” said Tommy Hamamoto, USGC director in Japan. “This experience allowed the team members to share experiences with new barley varieties, the production of U.S. barley, and food products that have been successful in the United States,” said Kimberly Karst, USGC manager of international operations. “The Mission has been useful for the exchange of information for all parties involved, as the market for food barley is still developing and the demand for feed barley is continuing to rise.”
USDA’s Weekly Export Sales Highlights for October 23-29, 2009
Corn: Net sales of 564,000 metric tons (22.2 million bushels) were up 54 percent from the previous week and 29 percent from the prior four-week average. Increases were reported for Canada (211,200 tons or 8.3 million bushels); Japan (186,800 tons or 7.4 million bushels, including 53,100 tons or 2.1 million bushels switched from unknown destinations); Taiwan (83,100 tons or 3.3 million bushels, including 58,000 tons or 2.3 million bushels switched from unknown destinations); Mexico (63,400 tons or 2.5 million bushels); Morocco (45,700 tons or 1.8 million bushels, including 47,000 tons or 1.9 million bushels switched from unknown destinations and decreases of 3,000 tons or 118,000 bushels); the Dominican Republic (22,800 tons or 898,000 bushels); and El Salvador (14,000 tons or 551,000 bushels, switched from Guatemala). Decreases were reported for unknown destinations (67,500 tons or 2.7 million bushels); Guatemala (11,600 tons or 457,000 bushels); Venezuela (3,500 tons or 138,000 bushels); and Honduras (2,300 tons or 91,000 bushels). Net sales of 7,200 tons (283,000 bushels) for delivery in 2010/2011 were for Canada. Optional origin sales totaling 1,200 tons (47,000 bushels) for Colombia were canceled. Exports of 708,200 tons (27.9 million bushels) were up 6 percent from the previous week, but down 14 percent from the prior four-week average. The primary destinations were Japan (236,100 tons or 9.3 million bushels); Mexico (128,200 tons or 5 million bushels); Colombia (63,700 tons or 2.5 million bushels); Peru (46,900 tons or 1.8 million bushels); Morocco (45,700 tons or 1.8 million bushels); Canada (38,700 tons or 1.5 million bushels); and Honduras (28,500 tons or 1.1 million bushels).
Barley: There were no sales reported during the week. Exports of 2,100 tons (96,000 bushels) were to Canada (1,800 tons or 83,000 bushels) and Mexico (300 tons or 14,000 bushels).
Sorghum: Net sales of 45,600 tons (1.8 million bushels) were for Mexico (25,900 tons or 1 million bushels) and Japan (19,700 tons or 776,000 bushels). Exports of 47,300 tons (1.9 million bushels) were to Mexico (43,900 tons or 1.7 million bushels) and Japan (3,400 tons or 134,000 bushels).
COUNCIL NEWS
Council Member Monsanto’s Grower Advisory Council Meets. USGC Chairman Rick Fruth and President and CEO Ken Hobbie traveled to St. Louis, Mo., this week to attend the Monsanto Grower Advisory Council meeting. Members of the Advisory Council received updates from Monsanto staff on their current research efforts, customer service actions and future projects. Representatives from the National Corn Growers Association presented to the group the status of the corn industry and their strategic plan. Members of the Advisory Council gave feedback to Monsanto on their efforts, assisting in solving business issues and identifying new opportunities to benefit U.S. producers.
Office Closed. The USGC Washington, D.C., office will be closed Wednesday, Nov. 11, in honor of Veteran’s Day. The office will resume normal business hours Thursday, Nov. 12.
Deadline Extended for Harvest Photo Drawing. Enter your best 2009 agricultural harvest photographs in a drawing to win a free meeting registration to the 7th International Marketing Conference and 50th Annual Membership meeting held in Puerto Vallarta, Mexico, Feb. 13-17, 2010. Photo entries are open to members and the general public. Enter more than one photo to increase your chances of winning. The Council will assume the rights of submitted entries for use in publications and print. Entries must be JPEG files. Submit your entries and contact information via e-mail to
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by Dec. 1. You may also mail entries on a CD or jump drive to 1400 K St. N.W., Suite 1200, Washington, DC 20005. Contact Mike Deering, USGC director of communications, at
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, for more information.
Japan Buys U.S. Food Barley. A Simultaneous Buy and Sell tender for food barley was held at Japan’s Ministry of Agriculture, Forestry and Fisheries Oct. 29 for both bulk and container shipments. 525 tons (24,000 bushels) of U.S. barley and 52 tons (2,400 bushels) of Canadian barley were tendered for container shipment. 20,000 metric tons (919,000 bushels) of Australian barley were tendered for bulk shipment.
NEW ON THE WEB
New Blogs Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent posts include, “Ohio Votes for Food Security,” by Mike Deering, USGC director of communications, and “U.S. Barley Farmers Meet #1 Customer Face-to-Face,” by Kimberly Karst, USGC manager of international operations for Asia. Visit “The Grain Board” at www.thegrainboard.com. For more information, contact the bloggers at
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New Photos Posted. New photos are posted on the Council’s Flickr account. Check out the newest photo sets titled, “Barley Mission to Taiwan and Japan,” and “SEA Grain Marketing Team October 2009.” Click on the link above to access. No registration is required.
Need Audio? Check out the USGC “Council Cast,” Updated Often. In an effort to bring the most current news to Council members, media and the general public about USGC happenings overseas, the Council has launched a podcast called the “Council Cast.” The “Council Cast” is located on the USGC Web site, www.grains.org, in the Media Center, where you can subscribe to the RSS feed and iTunes. The most recent post includes, “U.S. Sorghum May Find New Home in the Philippines, Taiwan, Japan,” where Marri Carrow, USGC manager of communications, talks to Alvaro Cordero, USGC manager of international operations for marketing, about the market opportunities for U.S. grain sorghum in the Philippines, Taiwan and Japan. For more information about the “Council Cast,” contact Melisa Augusto, USGC membership and communications coordinator, at
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COUNCIL ACTIVITY CALENDAR
November 10-20: Council members representing U.S. DDGS suppliers will travel to Egypt and Turkey to conduct DDGS workshops for end-users and other U.S. grains purchasers. The trip will conclude at the GlobalGrain Conference in Geneva, Switzerland. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at
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November 11-20: Dan Keefe, USGC manager of international operations for DDGS, and Council delegates representing U.S. DDGS suppliers will travel to Morocco to conduct DDGS workshops for end-users and other U.S. grains purchasers. The trip will conclude at the GlobalGrain Conference in Geneva, Switzerland. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at
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November 11-13: The Council will host booth number 59 at the National Association of Farm Broadcasting’s Trade Talk event held during its 2009 Annual Convention. Attendees can stop by the booth to interview Rick Fruth, USGC chairman, or Ken Hobbie, USGC president and CEO. For more information, contact Mike Deering, USGC director of communications, at
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November 12-21: The Council will host a team of staff from Egypt’s Regional Center for Food and Feed (RCFF) to the United States. The RCFF representatives will attend training sessions with USDA’s Federal Grain Inspection Service, and Grain Inspection, Packers and Stockyards Administration staff to learn about recent advances in quality control for food grains, feed ingredients and finished feeds. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at
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November 15-21: The Council will host the Vietnam Swine Industry Symposium in Ho Chi Minh City, Vietnam. Council staff and six consultants will attend the event with representatives from Vietnam’s commercial swine sector. The consultants will each give presentations in their area of expertise, including swine farm management and record keeping; nutrition; farm design; feed formulation; genetics and breeding; and reproduction. For more information, contact Kimberly Karst, USGC manager of international operations for Asia, at
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November 16-20: Council staff and member representatives will travel to Germany for the annual meeting of the German Maize Committee. Rebecca Fecitt, USGC director of biotechnology programs, will travel with Gordon Wassenaar, representing Iowa Corn Promotion Board, and Gary Schmalshof, USGC Biotech Advisory Team leader representing the Illinois Corn Marketing Board, who will report their experiences with biotech seed varieties. For more information, contact Fecitt at
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November 17: The Food and Agricultural Export Alliance governing board will meet in Washington, D.C., to discuss current issues and activities, including activities in Vietnam, China and Cambodia. For more information, contact Hillary Bennett, USGC executive assistant, at
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November 17-19: Council staff and members will travel to Geneva, Switzerland, for the GlobalGrain 2009 conference. The conference attracts over 700 delegates from 50 countries. The Council will host a booth at the event. Council members CHS Inc. and Land O’Lakes Inc. will be represented. For more information, contact Alvaro Cordero, USGC manager of international operations for marketing, at
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November 18-20: The Council will host the Regional Malt and Malting Barley Conference in the Dominican Republic. Latin American participants will gather to meet with U.S. barley growers, traders and maltsters to exchange current market information and customer product specifications. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at
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The U.S. Grains Council does not discriminate on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities, who require alternative means for communication of program information should contact the U.S. Grains Council. |