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Biotech Import Ban Creates Feed Ingredient Shortage in Turkey. In the weeks following Turkey’s announcement of additional requirements on importation of all food and feed products containing genetically enhanced components, progress to reverse or amend the stringent requirements has yet to be made. Those involved in the import and use of the products are still waiting for the outcome of a court case filed shortly after the regulations were announced. According to Joe O’Brien, USGC regional director in the Middle East and Subcontinent, feedmillers and livestock producers are said to be running out of feed. Producers anticipate being out of ingredients, especially corn and distiller’s dried grains with solubles (DDGS), in the next four to six weeks. “Meanwhile, there are vessels near the region that are not able to come into port to deliver essential feed ingredients only available through exports and are circling the area or consigning the cargo into costly bonded facilities, driving up costs,” said O’Brien. As producers are faced with the shortage, prices for alternatives to corn and DDGS have rapidly increased threatening a standstill in the industry. Local feedmillers are banding together to present their case to the government officials, commissioning their own scientific research in order to counter the claims that have been made. At this critical time for U.S. feed grains in Turkey, the Council conducted a DDGS Road Show in the region, focusing not only on the promotion and usage of U.S. feed ingredients, but also offering an education on genetically enhanced products. As Council staff and consultants met with the end-users, they were met with unease and desperation. O’Brien said, “Many of the Turkish industry representatives wanted to know what action the United States was going to take and when. We pointed out that measures would have to come from the Turkish industry itself, working with the government to inject basic science and common sense into negotiations to reopen markets to these vitally needed commodities.”

USDA Announces $1.175 Billion in Credit Guarantees for 2010. On Nov. 13, 2009, USDA’s Foreign Agricultural Service announced $1.175 billion to the GSM-102 program for fiscal year 2010, which began Oct. 1, 2009, allocating the first tranche of the $5.5 billion limit set by Congress. According to the U.S. Grains Council, the GSM-102 program is an effective program that encourages international consumers to purchase their agricultural needs from the United States. “The GSM-102 program is a credit guarantee program whereby the U.S. government guarantees against the default of an exporting country paying for agricultural commodities they buy from the United States. The key is that it is effective only for purchases from the United States, so the use of this program guarantees those agricultural commodities are coming from the United States,” said Erick Erickson, USGC special assistant for planning, evaluation and projects. With rare exceptions, this program does not involve the expenditure of U.S. government funds because of the due diligence USDA’s Commodity Credit Corporation exercises in approving foreign lenders. 

Countries allocated GSM-102 credit guarantees for export sales include:

• $200 million for South Korea;
• $125 million for Turkey;
• $125 million for Eurasia Region;
• $100 million for Southeast Asia;
• $100 million for the Caribbean Region;
• $100 million for Central America;
• $100 million for Mexico;
• $100 million for South America;
• $75 million for the Middle East and North Africa;
• $75 million for Sub-Saharan Africa;
• $50 million for China and Hong Kong; and
• $25 million for South Asia.

The Council works proactively in these markets to ensure new and continued customers for U.S. corn, barley, sorghum and their value-added products. According to Erickson, the Council works closely with end-users and foreign banks to educate them on the program, which has helped make it what it is today. “U.S. farmers benefit from having a guaranteed market while our overseas customers are able to get the credit necessary to providing food and fiber for their people,” said Erickson. “It is a very popular program.” Click here for audio.

Fall of Iron Curtain Releases Billions into Global Marketplace
By Mike Deering, USGC Director of Communications
World history is not only fascinating because of what transpired many years ago, but what continues to occur today as a result of yesterday’s efforts. I was in second grade when the Berlin Wall fell to the ground, so I don’t recall too much about it and I certainly didn’t absorb the significance of the event at eight years old. Nov. 9, 2009, marked the 20th anniversary of the fall of the Iron Curtain. The wall was a concrete barrier built by the German Democratic Republic (GDR) completely enclosing the city of West Berlin, separating it from East Germany, including East Berlin. The wall amounted to a division of families and pure isolation from the rest of the world, which contributed to a decrease in family incomes, hunger and a restriction in the free and open transfer of goods and services. The wall is an example of a physical trade barrier rather than those we are dealing with today that are policy and regulatory driven. The 96 mile long wall interrupted 32 railway lines between the East and the West. On the waterways, the wall consisted of submerged railings under constant surveillance by patrol boat crews, which prevented any transfer of goods between the East and West. The plan repressed private trade and created supply gaps behind the Iron Curtain, which became increasingly severe and oppressive. During a revolutionary wave sweeping across the Eastern Bloc, the East German government announced on Nov. 9, 1989, after several weeks of civil unrest, that all GDR citizens could visit West Germany and West Berlin. Crowds of East Germans reportedly climbed onto and crossed over the wall, joined by West Germans on the other side in celebration. Over the next few weeks, parts of the wall were chipped away by a euphoric public and by souvenir hunters; industrial equipment was later used to remove almost all of the rest. The fall of the wall paved the way for German reunification, which was formally concluded on Oct. 3, 1990. When the wall fell, it literally released roughly 300 million people into the global marketplace in search of opportunity and a better standard of living. As opportunities were found and incomes started to grow, an explosive demand for food occurred, which increased overall global demand for U.S. grains and other agricultural commodities. Consumers suddenly had access to goods and services that hadn’t been available behind the Iron Curtain; and for the first time in decades, entrepreneurs were able to start their own companies. Along with these economic changes, at least in most of the countries, came elections and the potential for democracy.

German Corn Growers Interested in U.S. Agricultural Biotechnology. The German Maize Committee held its annual meeting this week and requested to hear the U.S. farmer’s perspective and experience using biotech crops. U.S. Grains Council Biotechnology Advisory Team members Gary Schmalshof, leader, and Gordon Wassenaar, along with USGC Director of Biotechnology Programs Rebecca Fecitt, traveled to Germany to present to several academic groups, local farmers and farm organizations, regional Chamber of Agriculture staff and finally, the annual meeting of the German Maize Committee. “The acceptance of biotech cultivation in Germany is not going to happen from one day to another, but the new German government coalition is sending some positive, optimistic signals that it could turn around and gain acceptance in the agricultural community and even in the political process in the long term,” said Dietmar Achilles, agricultural specialist from the U.S. Embassy in Berlin, who traveled with the team. “We should not give up on Europe with regard to biotechnology.” Fecitt said there appeared to be a common misconception about the dependence of U.S. farmers on large biotech companies for their seed choices. “A lot of them were surprised to learn of the variety of choices in the market,” said Fecitt. “Gordon and Gary explained that U.S. farmers do have choices and make decisions based on what’s best for their farming operations.” The team traveled to the College for Agricultural Science in Soest, Germany, where the Dean of Agriculture, three professors and about 70 students held an intensive discussion on the benefits of biotechnology. “These students ranged from 23-27 years old, nearing graduation, and most have a background in farming. It came as a surprise to them to learn that biotechnology is a normal tool used by U.S. farmers, with the effect of environmental, financial and labor-reducing benefits,” said Achilles. Fecitt said the timeliness of their presence in Germany, with consideration of the new administration, makes her more optimistic than several months ago. “With the new change in government, farmers and the agricultural community are more interested in getting the factual information. Not only do we get an idea of how this might change things for the future, we are able to get the information out to the people and farmers by sharing our real-life experiences,” said Fecitt. Maize Committee staff Dr. Susanne Kraume said, “U.S. farmers are very practical and it is interesting for us to hear about how they do things in the United States.”

USDA’s Weekly Export Sales Highlights for November 6-12, 2009
Corn: Net sales of 352,900 metric tons (13.9 million bushels) were down 28 percent from the previous week and 15 percent from the prior four-week average. Increases were reported for Japan (187,200 tons or 7.4 million bushels); Mexico (30,500 tons or 1.2 million bushels); Saudi Arabia (30,300 tons or 1.2 million bushels, including 28,000 tons or 1.1 million bushels switched from unknown destinations); Colombia (25,300 tons or 996,000 bushels); the Dominican Republic (25,000 tons or 984,000 bushels); Taiwan (19,800 tons or 779,000 bushels); and Jordan (16,900 tons or 665,000 bushels, including 16,000 tons or 630,000 bushels switched from unknown destinations). Decreases were reported for Guatemala (32,800 tons or 1.3 million bushels); South Korea (6,800 tons or 268,000 bushels); and Canada (1,200 tons or 47,000 bushels). Exports of 683,200 tons (27 million bushels) were down 10 percent from the previous week and 7 percent from the prior four-week average. The primary destinations were Japan (221,200 tons or 8.7 million bushels); Mexico (141,600 tons or 5.6 million bushels); South Korea (114,600 tons or 4.5 million bushels); Venezuela (53,000 tons or 2.1 million bushels); Saudi Arabia (30,300 tons or 1.2 million bushels); Canada (28,900 tons or 1.1 million bushels); and Jordan (16,900 tons or 665,000 bushels).

Barley: Net sales of 500 tons (23,000 bushels) were for Canada. Exports of 700 tons (32,000 bushels) were to Canada.

Sorghum: Net sales of 72,000 tons (2.8 million bushels) were mainly for Mexico (55,700 tons or 2.2 million bushels) and unknown destinations (16,300 tons or 642,000 bushels). Exports of 50,800 tons (2 million bushels) were to Mexico. 

COUNCIL NEWS

DDGS Market Assessment Conducted in Japan, Korea. The Council hosted three individuals from U.S. ethanol producing facilities to travel to Japan and Korea this week to conduct a market assessment on the use of DDGS in the two countries. Representatives from Council members Consolidated Grain and Barge Co. and Scoular Company, as well as a representative from Commonwealth Agri-Energy LLC, met with Council staff, grain traders, nutritionists, feedmillers and other end-users in the region. USGC Director in Japan Tommy Hamamoto said, “The team was able to see the whole picture of the DDGS market in Japan, including constraints and opportunities both in the existing livestock sectors like poultry, and new sectors like beef cattle. The team and the Council were able to reconfirm the importance of reciprocal communications between the U.S. ethanol industry and the Japanese livestock industry on quality, availability and safety of U.S. DDGS to develop and expand the use in Japan.” USGC Director in Korea Byong Ryol Min echoed Hamamoto’s sentiment for the assessment’s importance and outcome in Korea, adding, “Their findings and recommendations will play an important role in using Council’s resources effectively and efficiently in order to achieve the maximum possible outcome.”

U.S., Egypt Harmonized Grain Sampling Procedures Market the U.S. Advantage. Three staff members from Egypt’s Regional Center for Food and Feed (RCFF) traveled to the United States this week to participate in a Federal Grain Inspection Service (FGIS) training program for an update on the recent advances in quality control for food grains, feed ingredients and finished feeds. This travel is in fulfillment of the Memorandum of Understanding (MOU) between RCFF, Egypt’s Ministry of Agriculture and the U.S. Grains Council, upheld since 2002. This MOU charges the Council with providing up-to-date information and educational options on the latest technology employed by the U.S. FGIS in order for RCFF to harmonize the grain sampling procedures carried out by the United States. The Council believes this MOU levels the playing field for imports in Egypt and is the best way to market the U.S. advantage.

DDGS Formulation Workshops Held in Taiwan. The Council recently conducted DDGS workshops in Taipei City and Kaohsiung City, Taiwan, for livestock and poultry nutritionists. The workshops were intended to aid the nutritionists in their understanding of the usage of DDGS in animal feeds in order to increase inclusion and overall consumption. The workshops came as a follow up to the introduction to and installation of new feed formulation software this past July. The Council was able to reach more than 90 nutritionists through the series of six workshops held in this two week period.

FAEA Executive Board Meets. The executive board of the Food and Agriculture Export Alliance (FAEA), of which the Council is a member, met this week in Washington, D.C. The group, comprised of USGC, U.S. Soybean Export Council, USA Poultry and Egg Export Council, U.S. Meat Export Federation and U.S. Dairy Export Council representatives met to evaluate FAEA’s efforts and potential projects in Vietnam, China, Cambodia and Egypt. Thomas C. Dorr, USGC president and CEO, and Erick Erickson, USGC special assistant for planning, evaluation and projects, represented the Council at the meeting.

USGC Staff Presents at USAEDC Annual Meeting. The U.S. Agricultural Export Development Council (USAEDC) held its 2010 Annual Workshop in Baltimore, Md. USGC staff Thomas C. Dorr, president and CEO; Erick Erickson, special assistant for planning, evaluation and projects; Mike Callahan, senior director of international operations for Asia; and Jennifer Sydney, manager of programs, attended the workshop. Dorr represented the Council on the USAEDC Board of Directors. Erickson presented during the session titled, “Global Insight Cost-Benefit Study Update,” and Callahan on, “Successful Market Development Strategies.”

Vietnam Swine Industry Symposium Increases Interest of U.S. Feed Grains. The Council hosted approximately 120 commercial swine producers for the Swine Industry Symposium in Ho Chi Minh City, Vietnam, this week. The symposium’s objectives were to educate commercial swine producers on key managerial and technical issues. According to Adel Yusupov, USGC regional director in Southeast Asia, the potential for feed grains demand in Vietnam’s commercial swine sector is tremendous. He said, “An average backyard pig consumes about 110 pounds of corn, whereas commercially produced hog consumes 441 pounds. We can double corn feed demand by educating commercial swine producers on proper swine nutrition, farm management, record keeping, disease prevention, reproduction and genetic improvement. I am very excited about DDGS prospects. The usage is increasing. September imports were at 37,000 metric tons and October imports are estimated at 40,000 tons. This is a very exciting market to work in!” The Council brought six consultants to the symposium. Dr. Robert Thaler, USGC consultant in attendance, said, “The symposium’s attendance was higher than anticipated and participants indicated a real interest and need among Vietnamese swine producers for technical information. With the rapid growth of the commercial swine sector, there is tremendous potential for U.S. corn and DDGS.”

Council Conducts DDGS Road Shows. Over the past two weeks, the Council conducted two concurrent DDGS Road Shows. One team of Council members and consultants and U.S. ethanol producers traveled through Turkey and Egypt, while the second made presentations in Morocco, before converging in Geneva, Switzerland, for the GlobalGrain 2009 Conference. The Road Shows were designed for Council members and consultants and U.S. ethanol producers to meet with end-users to provide up-to-date information about DDGS and corn gluten feed, including supply and demand updates. Each of the countries visited has developing livestock markets, creating the potential for substantial growth for U.S. products in the marketplace. Members represented on the Road Shows were North Star Grain International LLC; Land O’ Lakes Inc.; and CHS Inc.

GlobalGrain 2009 Conference Forges Relationships for Trade. Council staff Joe O’Brien, regional director in the Middle East and Subcontinent; Alvaro Cordero, manager of international operations for marketing; and Dan Keefe, manager of international operations for DDGS, traveled to Geneva, Switzerland, for the GlobalGrain 2009 Conference. The Council’s booth at the conference served as an opportunity to forge essential interpersonal relationships between Council staff, members and global end-users. O’Brien, traveled to the conference with a team of Saudi Arabian industry representatives. He said not only was the conference a venue to work on relationships with the participants, but also helped in, “Reinforcing the Council’s efforts to get DDGS included on the lucrative Kingdom of Saudi Arabia import feed ingredient subsidy list. The participants took keen interest in our supplemental materials at the booth as well as meeting with the members that participated in the DDGS Road Shows.”

Deadline Approaching 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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it  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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it , for more information.

NEW ON THE WEB

Monthly Management Reports (MMRs) Posted in The GRAIN Center. The October Monthly Management Reports from the Council’s Asia offices are now available in The GRAIN Center, the members-only section of the Council’s Web site, www.grains.org. Prepared by the Council’s international offices, these reports include information on market developments as well as Council programs and activities. For more information on Asia MMRs, contact Kyle Cromer, USGC international operations coordinator for Asia, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

New Blogs, Photos Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent posts include, “From the Fields of Missouri,” by Mike Deering, USGC director of communications, and “USDA Announces FY 2009/2010 GSM-102 Allocations,” by Marri Carrow, USGC manager of communications. Visit “The Grain Board” at www.thegrainboard.com. For more information, contact the bloggers at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . New photos are posted on the Council’s Flickr account. Check out the newest photo sets titled, “2009 Harvest Photos,” and “Latin American Regional Malt and Malting Barley Conference.” Click on the link above to access. No registration is required.

Need Audio? Check out the USGC “Council Cast,” Updated Often. Stay up-to-date with Council news and happenings around the world by subscribing to the “Council Cast,” the Council’s podcast. 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 posts include: “USDA Announces $1.175 Billion for 2010 Credit Guarantees,” where Marri Carrow, USGC manager of communications, spoke with Erick Erickson, USGC special assistant for planning, evaluation and projects, about USDA’s popular credit guarantee program, GSM-102; and “FTAs Stalled, USGC Continues Developing Markets,” where National Association of Farm Broadcasting’s Stacia Cudd interviews USGC Chairman Rick Fruth about the importance of free trade for U.S. agriculture. For more information about the “Council Cast,” contact Melisa Augusto, USGC membership and communications coordinator, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

COUNCIL ACTIVITY CALENDAR

November 28-December 3: A team of five Trade Policy A-Team members will travel to Geneva, Switzerland, for meetings to coincide with the World Trade Organization Ministerial Conference. The team will meet with embassy representatives and agricultural negotiators who will attend the conference. The group will also discuss current issues with Council members CHS Inc. and Cargill. Representing Council members at the meetings include Phillip “Chip” Councell, Maryland Grain Producers Utilization Board; Dale Murden, Texas Grain Sorghum Association; Dan Kidd, Montana Wheat & Barley Committee; and Dale Artho, United Sorghum Checkoff Program. USGC President and CEO Thomas C. Dorr will travel with the team. For more information, contact Hillary Bennett, USGC executive assistant, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

November 28-December 4: Gary Duffy, representing Council member South Dakota Corn Growers Association; Tim Carlson, representing Council member AgMotion Inc.; and Jay O’Neil, USGC consultant, will travel to Korea to conduct a two-day feed grains seminar. This program will provide local corn importers with the opportunity to improve their understanding on current market information. The seminar will provide a U.S. and world corn supply and demand outlook, a DDGS production and supply outlook, and information on ocean freight. In addition to the seminar, the team will also provide a series of on-site consultations for buying groups and organizations. For more information, contact Kimberly Karst, USGC manager of international operations for Asia, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

November 29-December 5: The Council will host the Central American Snack Food Team to the United States. The group of representatives from the Central American snack foods industry will meet with specialty grain producers, visit specialty corn production areas, learn about logistics and grain handling and establish potential contracts for specialty grains production with U.S. producers. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

December 1-12: The 2009 Corn Mission will travel to Morocco, Egypt and Jordan to get a firsthand look at Council programming in these regions. The six participants to this mission are Council delegates William Crossman, Virginia Corn Board; Jim Stuever, Missouri Corn Merchandising Council; Bob Timmons, Kansas Corn Commission; Darren Armstrong, Corn Growers Association of North Carolina Inc.; Jerry Griffith, Kentucky Corn Promotion Council; and Joe Zenz, Wisconsin Corn Promotion Board Inc. Chuck Zimmerman, of ZimmComm New Media, will also travel with the group. USGC Director of Membership Shannon Schaffer, along with Council staff in the region, will accompany the team. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

December 3: USGC Special Assistant for Planning, Evaluation and Projects Erick Erickson will travel to Coeur d’Alene, Idaho, for the Oregon/Idaho Grains Conference. Erickson will meet with the participants and present on the Council’s latest projects and initiatives specific to U.S. barley. For more information, contact Hillary Bennett, USGC executive assistant, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 

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.