Global Update: January 14, 2009 PDF Print E-mail
Font Size Larger Font Smaller Font
Contact Mike Deering and Marri Carrow at (202) 789-0789   
Thursday, 14 January 2010 16:51

Download the PDF

Ethanol Co-product Scores Again, This Time in Egypt. U.S. corn producers sending their corn to U.S. ethanol plants also receive added value for their crop from the derivative distiller’s dried grains with solubles (DDGS). A widely used feed ingredient in the United States, DDGS is increasingly being used in markets around the world. The U.S. Grains Council, funded by U.S. agriculture and USDA’s Foreign Agricultural Service, conducts educational seminars and feeding trials to increase familiarity and usage of the U.S. feed ingredient. “The Council identifies opportunities for DDGS in foreign markets and then begins an introduction of the co-product to end-users unfamiliar with the ingredient,” said Dan Keefe, USGC manager of international operations for DDGS. “Part of the introduction usually includes proving the nutritional value of DDGS in livestock and poultry rations. This is why we conduct several DDGS feeding trials annually.” A feeding trial using DDGS recently concluded in Egypt in the dairy, water buffalo and poultry sectors. The conclusion matches up with the results of previous trials orchestrated by the Council. “Once again, DDGS has carried its weight both on a nutritional and economic level,” said Keefe. For example, when feeding DDGS to dairy cattle in Egypt at a 20 percent inclusion rate, milk production increased 5 percent and a total feed cost savings of $17 per metric ton. In the water buffalo sector, DDGS fed at a 12 percent inclusion resulted in an average daily weight gain increase of 13 percent and feed cost savings of $8.40 per ton. Layer hens and broilers fed DDGS resulted in feed cost savings of $1.50 per ton. Dr. Hussein Soliman, USGC director in Egypt, said U.S. DDGS exports to Egypt will likely amount to 85,000 metric tons in the 2009 calendar year, up from 60,000 tons in 2008. He anticipates the Egyptian market to have a potential demand for DDGS reaching 400,000 tons. Keefe estimates total exports for 2009 will ultimately total more than 5 million tons. DDGS shipments in the third quarter of 2009 were up 29 percent compared to 2008 numbers.

US Barley Sample Leaves Taiwan Buyers Coming Back for More. The U.S. Grains Council, the leading U.S. organization for the market development of barley, corn, sorghum and their co-products, helped foster the sale of 200 metric tons (9,186 bushels) of U.S. high beta glucan hull-less barley (BG 012) to Taiwan. The McKay Seed Co. put the final touches on its contract with Tai-I and Taisun, Taiwanese importers, earlier this week. “The Council met with the Taiwan Barley Products Industry Association several times where we successfully introduced and convinced them to become interested in food barley,” said former USGC Senior Advisor in Taiwan CM Lynn. “The Council worked with McKay to get samples to Tai-I, who tested and then used the samples to make 20-30 different food products for display at a local food trade show and seminars. End-users were impressed with the high quality products and wanted more.” McKay Seed Co. Manager Dan McKay said he heard of the interest in Taiwan during a business trip to Japan last winter. “McKay heard of the interest in Taiwan and sent two sample containers (each holding 20 metric tons or 919 bushels) of the 2008 crop in July. With that and the help of CM and the Council, we were finally able to put this sale together,” said McKay. The recently tendered U.S. barley will ship sometime in late January or early February. “We plan on making a trip in late February to determine if there is potential for the new 2010 crop so we may plant accordingly,” he said.

Registration for the Council’s Upcoming Puerto Vallarta Meeting Extended to Jan. 20. Registration for the U.S. Grains Council’s 7th International Marketing Conference & 50th Annual Membership Meeting held Feb. 13-17, 2010, in Puerto Vallarta, Mexico, is available on the Council’s Web site, www.grains.org. You can fill out a registration form by clicking on the “Upcoming Meetings” link on the right hand side of the homepage. You can also click here. The meeting brochure with agenda, optional tours and hotel information can also be found on the Web site. Meeting registration ends Jan. 20. Contact Valerie Smiley, USGC manager of membership, at 202-789-0789, with any questions.

Council Programs Put Our Money to Good Use
By Joe Zenz, Wisconsin Corn Promotion Board Inc.
Traveling on the U.S. Grains Council’s 2009 Corn Mission to Morocco, Egypt and Jordan was an eye-opening experience both from a cultural perspective and a business perspective. First and foremost, I was very impressed with the effectiveness of Council programs there and the high level of people we have working for us in those countries.

From the chicken farm and feedlot in Morocco, the water buffalo dairy in Egypt and Jordan’s modern Holstein dairy, everyone we met loved our distillers’ grains. Producers talked about the excellent quality and how well the high energy component of the distillers’ grains worked in their rations.

We saw great disparities in conditions on the trip. There were farmers living the way their ancestors had for thousands of years; there were some of the most modern facilities you’d find anywhere. In Egypt, because they are trying so hard to keep people employed, we saw a lot of people doing menial labor. The dairy we visited in Egypt – which milked water buffalo – had a pipeline and refrigerated milk tank but then the milk was hauled out in milk cans on pickup trucks and even the occasional donkey cart! This seemed like it was a detriment to modernization and was in sharp contrast to the way things are in Jordan, which is a very contemporary country with dairy farms like you’d see in the United States.

Although taking the trip made harvest more stressful, it was a very meaningful trip and I’d encourage everyone given the chance to participate. I have a whole new appreciation for the Council’s programs, its staff and how well our money is being put to use. I also can say I’ve eaten pigeon and a few other foods I’m not really sure about! Thanks for the memories.

USDA Projects Record Corn Crop and Yield. USDA projects U.S. corn production at a record 13.2 billion bushels. This is up from 12.9 billion bushels projected in USDA’s December forecast and 1 percent above the previous record of 13 billion bushels set in 2007. Corn exports are projected at 2.1 billion bushels, unchanged from last month and up from the estimated 1.9 billion bushels exported in 2008/2009. According to USDA’s World Agricultural Supply and Demand Estimates released Tuesday, U.S. corn yield is estimated at a record 165.2 bushels per acre in 2009. This is up 2.3 bushels from the December forecast and 4.9 bushels above the previous record of 160.3 bushels per acre set in 2004. Rebecca Fecitt, U.S. Grains Council director of biotechnology programs, said the continued utilization of scientifically proven biotechnology applications provided by life science companies will help to increase corn yields, solidifying the need to continue developing markets for U.S. coarse grains. “We hope to see this upward trend in yields for U.S. corn continue. As science becomes even more sophisticated, it will help increase and maintain our yields. This will be instrumental in feeding the world’s forecasted 9.1 billion people by 2050,” said Fecitt. “The growing population, especially in developing countries, will demand more meat, milk and eggs as incomes continue to increase. We have to maintain our biotechnology education efforts in order to ensure that grain derived from biotechnology is accepted around the world.” USDA projects sorghum production at 383 million bushels, which is 19 million bushels higher than the December report. Exports are unchanged from last month at 140 million bushels. Click here for audio.

USDA’s Weekly Export Sales Highlights for January 1-7, 2010
Corn: Net sales of 327,300 metric tons (12.9 million bushels) for delivery in 2009/2010 were down 10 percent from the previous week and 67 percent from the prior four-week average. Increases were reported for Japan (124,400 tons or 4.9 million bushels, including 97,700 tons or 3.8 million bushels switched from unknown destinations); South Korea (115,000 tons or 4.5 million bushels); Taiwan (80,500 tons or 3.2 million bushels, including 45,000 tons or 1.8 million bushels switched from Japan); Peru (32,000 tons or 1.3 million bushels); the Dominican Republic (28,500 tons or 1.1 million bushels, including 3,000 tons or 118,000 bushels switched from Colombia); Morocco (15,800 tons or 622,000 bushels, switched from unknown destinations); and El Salvador (4,700 tons or 185,000 bushels, switched from Guatemala). Decreases were reported for Egypt (52,700 tons or 2.1 million bushels); Mexico (21,800 tons or 858,000 bushels); Guatemala (5,100 tons or 201,000 bushels); and Colombia (3,500 tons or 138,000 bushels). There were no sales reported for delivery in 2010/2011. Exports of 658,000 tons (25.9 million bushels) were down 18 percent from the previous week and 8 percent from the prior four-week average. The primary destinations were Japan (229,000 tons or 9 million bushels); Taiwan (111,800 tons or 4.4 million bushels); Mexico (74,900 tons or 2.9 million bushels); Peru (54,000 tons or 2.1 million bushels); the Dominican Republic (37,300 tons or 1.5 million bushels); and Panama (32,900 tons or 1.3 million bushels).

Barley: There were no sales reported during the week. There were no exports reported during the week.

Sorghum: Net sales reductions of 100 tons (3,900 bushels) were for Mexico. Exports of 11,700 tons (461,000 bushels)--a marketing-year low--were to Mexico.

COUNCIL NEWS 

USGC Headquarters Closed. The U.S. Grains Council headquarters in Washington, D.C., will be closed Monday, Jan. 18, 2010, in celebration of Martin Luther King Jr.’s birthday. The Council will reopen during regular business hours Tuesday, Jan. 19, 2010. The Council wishes you all a safe and happy holiday.

Overseas Opportunity for College Ag Students Application Reminder. The Grains Foundation and the National FFA Organization are now accepting applications for the International Collegiate Agricultural Leadership (I-CAL) program. The 12 undergraduate students for this year’s I-CAL mission will journey to Malaysia and Taiwan from May 16-28, 2010. The I-CAL program is intended for students who wish to continue their future education and career path in agriculture. Knowledge gained by I-CAL participants will serve American agriculture as they become future leaders in production agriculture, agribusiness and related fields. Jim Broten, chairman of The Grains Foundation, said, “The I-CAL program offers young agricultural professionals a unique opportunity to see the benefits of international trade firsthand. It is our hope they will become believers and promoters of international trade, as it benefits the whole world.” Click here to find more information about the I-CAL program and to apply. Please note that applications MUST be postmarked by Feb. 15, 2010.

USGC Board of Directors Meet in Missouri. The U.S. Grains Council Board of Directors met in St. Louis, Mo., this week to discuss 2010 priorities for the Council. The meeting also included the leaders of the Council’s grassroots Advisory Teams. Subsequent to the Board meeting, they met jointly with the Board of the National Corn Growers Association (NCGA). Council leaders were also attendees of NCGA’s Priority and Policy meeting, where resolutions for policy were established to present at NCGA’s Corn Congress in Washington, D.C. The Council elected leaders were accompanied by USGC President and CEO Thomas C. Dorr and Senior Vice President of Operations and Industry Relations Keith Heffernan.

NEW ON THE WEB

New Blogs Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent post includes, “Registration for USGC Puerto Vallarta Meeting Extended,” 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 Video Posted on the Web. In this “America’s Heartland” episode, a bakery in Egypt churns out thousands of loaves of bread a day, a California hair stylist uses the hottest new product on the market and a Moroccan farmer changes the way he raises his cattle. Yes, they are all connected to American farming. “America’s Heartland” reporter Jason Shoultz takes viewers to Egypt and Morocco with the U.S. Grains Council and the U.S. Wheat Associates to see how American grain products are being used overseas. Go to the Council's homepage, www.grains.org, to view. The episode was sponsored in part by the Ohio Corn Marketing Program.

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 post includes, “USDA Projects Record Corn Crop and Yield,” where Mike Deering, USGC director of communications, interviewed USGC director of biotechnology programs Rebecca Fecitt about the role biotechnology plays in the increase in corn yield. For more information about the “Council Cast,” contact Marri Carrow, USGC manager of communications, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

COUNCIL ACTIVITY CALENDAR

January 18-22: USGC Manager of International Operations for Marketing Alvaro Cordero and United Sorghum Checkoff Program Marketing Director Florentino Lopez will travel to Nebraska to participate in the 2010 Sorghum Cropping Profitability Seminars, hosted by Council member Nebraska Grain Sorghum Board (NGSB). Cordero will give an update on international markets for U.S. sorghum and Lopez on domestic markets for U.S. sorghum. Cordero and Lopez will also visit local ethanol plants, elevators and co-ops that are current members of NGSB. For more information, contact Cordero at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

January 23-29: The Council will host three international teams to the International Poultry Expo in Atlanta. Prior to the Expo, a team from Morocco, Egypt and the Kingdom of Saudi Arabia will attend a poultry nutrition short course at the International Grains Program at Kansas State University. Another Council hosted Moroccan team will attend a course in New Orleans to learn U.S. Federal Grain Inspection Standards. A team from Taiwan, escorted by Clover Chang, USGC director in Taiwan, will attend a course at the University of Georgia. USGC Manager of International Operations for Marketing Alvaro Cordero will represent the Council at the Expo. For more information, contact Cordero at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

January 26-27: USGC Senior Director of International Operations for Rest of the World (ROW) Chris Corry will travel to Jonesboro, Ark., for Council member Arkansas Corn & Grain Sorghum Board’s Annual Producer’s meeting. Corry will give a presentation on Council programs and initiatives made possible by membership investments. For more information, contact Gina Tumbarello, USGC manager of international operations for ROW, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

January 26-29: USGC staff Chris Corry, senior director of international operations for Rest of the World (ROW), and Gina Tumbarello, manager of international operations for ROW, will travel to Panama to meet with the Council’s directors in Mexico and Central America and Latin America. During these meetings, staff will collaborate on the drafting of the 2011 Unified Export Strategy, the Council’s strategic plan for developing markets for U.S. grains and co-products around the world. For more information, contact Tumbarello at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

January 27-29: USGC staff Thomas C. Dorr, president and CEO, and Mike Deering, director of communications, will travel to Wisconsin for the Wisconsin Corn and Soy Expo. For more information, contact Deering 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.

 
 
20 F Street NW, Suite 600, Washington, DC 20001      Phone: 202-789-0789      Fax: 202-898-0522
 

The U.S. Grains Council is a private, non-profit organization dedicated to building export markets for barley, corn, sorghum and their products. The Council is headquartered in Washington, D.C., and has 10 international offices and active market development programs in more than 50 countries. Financial support from the Council’s private industry members, including state checkoffs, agribusinesses, state entities and others, triggers federal matching funds from the government and support from cooperating groups in other countries, producing an annual market development program valued at more than $28.3 million.

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. The U.S. Grains Council is an Equal Opportunity Employer. For more information on Section 508, please go to the following website: http://www.ocio.usda.gov/508/index.html