Download the PDF

USGC: Looking Beyond US Borders. The U.S. Grains Council’s 7th International Marketing Conference and 50th Annual Membership Meeting, themed, “50 Years of Leadership: Acting on Opportunities,” will be held in Puerto Vallarta, Mexico, Feb. 13-17, 2010. “This meeting is essential for the Council as it provides a chance for stakeholders to gather with the USGC international staff and plan the best direction for Council programs and focus in the coming years,” said USGC President and CEO Thomas C. Dorr. “Information gathered at this meeting helps USGC Advisory Team members shape the 2011 Unified Export Strategy (UES). Given that U.S. corn production is expected to be a record 13.2 billion bushels, it is important to look beyond the borders of the United States for market opportunities for U.S. feed ingredients.” The UES serves as the Council’s marketing plan blueprint and is submitted to USDA to secure federal matching funds. In addition to presentations from the USGC international staff, meeting attendees will also have the opportunity to hear presentations from Carole Brookins, managing director of Public Capital Advisors LLC, and Christopher Langholz, vice president of Cargill Inc. USGC Chairman Rick Fruth said, “International market development continues to be a critical piece of the coarse grains supply and demand picture as well as the U.S. economy. The Council’s work in Developing Markets, Enabling Trade and Improving Lives is the foundation of opening new markets and defending those we have.”

USGC Promotes DDGS Usage to Growing Mexican Market. With consumption of distiller’s dried grains with solubles (DDGS) gradually growing in Mexico’s feed industry, Mexican feed producer Bachoco aims to increase its imports of the value-added product and has looked to the U.S. Grains Council and its network of experts for guidance. This week, a USGC-funded group traveled to Celaya, Mexico, where they lead a DDGS assessment workshop with Bachoco nutritionists, plant managers and a quality control specialist. The main objective of the training was to provide expertise on the use of DDGS, including its proper usage in poultry, swine, ruminants and aquaculture diets. The workshop also provided instructions on how to improve pellet quality when using DDGS in feed. Dr. Kim Koch, of Northern Crops Institute at North Dakota State University, Dr. Vern Anderson, also of NDSU, and Bob Thaler, of South Dakota State University, lead the workshop in cooperation with Patricia Esqueda, USGC technical director in Mexico and Central America. Bachoco has a total of 19 plants distributed throughout Mexico, of which three are for commercial feed production. The rest are for self consumption purposes. “The total annual feed production at Bachoco is 3 million metric tons, mainly for poultry, swine, ruminant, rabbit and horse feed,” said Esqueda, noting that approximately 80 percent is used for poultry, but that the company also sells pet, tilapia and bird feed. This translates into a grain consumption of around 1.5-1.8 million tons. According to Esqueda, Bachoco’s commercial plant in Minatitlan consumes 24,000 tons per year, but is looking to import more. “They have specific clients who are looking to customize their ruminant feed with Bachoco if they are willing to increase DDGS levels in their commercial diets,” she said. “They also wish to maintain pellet quality which has become an issue for them.” Dr. Koch has worked with Bachoco’s Minatitlan plant in previous years, helping them improve pellet quality. However, the increase in inclusion levels of DDGS may “force” Bachoco to convince its customers to use ground feed instead of pelleted feed, Esqueda said. According to information provided to participants during the workshop, this change would not affect animal performance and would simplify things for Bachoco, especially if they plan to increase DDGS levels in their commercial diets. On Friday, the group will present on the same topic at a conference in Guadalajara, where they will meet with producers and plant managers from the area of Jalisco at Tepatitlan. As Mexico currently imports an average of 1.02 million tons of DDGS annually, such information sharing is key in USGC’s efforts of reaching out to this particular market.

Overseas Opportunity for College Ag Students Application Reminder. The Grains Foundation and the National FFA Organization are 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. 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.

2010 US Agriculture 
By Terry Vinduska, U.S. Grains Council Vice Chairman and Kansas Corn Commission Board Member
Every farmer is optimistic. We wouldn’t be farming if we weren’t. As I look into the new year and how export demand will affect prices, I am, as usual, cautiously optimistic. One disclaimer: As vice chairman of the U.S. Grains Council, some will say I am biased toward the value of exports. I do believe in the value of exports and the importance of exports as we look into next year’s grain price crystal ball. As a grain producer, I believe we need both a strong domestic demand and a strong export demand to lead us into higher prices. This month, USDA raised its projection for U.S. wheat ending stocks for 2009/2010 by 15 million bushels. At the same time, global wheat supplies for 2009/2010 are projected to be one million tons higher and global wheat trade is projected slightly lower. We can all see that this doesn’t paint a bright picture for 2010 wheat prices. Even though projected U.S. wheat planted acres are down to around 59 million acres from 63 million last year, I’m afraid carry-over and strong world supply will make up for fewer planted acres. Looks like $5 wheat may be close to a top price next year (USDA range is $4.65-$5.05). I sure hope it’s closer to $6, but there’s just a lot of wheat worldwide. USDA is projecting that corn ending stocks for 2009 will be nearly unchanged from 2008 ending stocks. Corn exports are nearly at the same level as last year but we are currently experiencing a slightly slower pace of shipments. The Ukraine is offering increased competition as a world feed grain supplier and some are projecting that China will be exporting corn in 2010. Global coarse grain supplies are projected to be 3 million tons lower than 2008 supplies. U.S. planting intentions for 2010 are projected to be about the same as 2009 for corn and down almost 1.7 million acres for sorghum. So as we digest all of this information, can we look for strong U.S. prices for feed grains? USDA is projecting $3.25 to $3.85 average prices for corn. I’d lean toward somewhere in the top of that range because I think U.S. exports will strengthen slightly. I just have to comment on the supposed experts who said not too long ago that the United States would be out of corn and the world would be starving for corn due to increased demand of the ethanol plants. Once again the ability of U.S. production agriculture was underestimated. Weren’t we supposed to have $10 corn today because of lack of supply? And the U.S. housewife could never again afford a box of corn flakes! Guess they were wrong. Like it or not, whether we want to admit it or not, the market does work. And U.S. farmers know how to grow corn. Soybeans experienced a record export pace in December, according to USDA, which leads to higher price projections. Soybean ending stocks for 2009 are projected to be down 15 million bushels from the end of November. 2010 USDA projections for soybeans are for a 2 million acre increase in planted acres and a price range of $8.75-$10.25. I can’t help but think that soybean exports will continue to increase. All things considered, I think we can survive with these price projections if we have normal to above normal yields. I hope USDA is low, we deserve more, but my guess is that they are pretty close.

Meeting Competition USGC Focus in 2011. The U.S. Grains Council’s international operations staff recently gathered in two locations, Amsterdam and Hong Kong, to discuss and determine plans for the future of the Council. Addressing competition in each market was an overlying theme as USGC staff drafted the 2011 Unified Export Strategy (UES). The UES is the Council’s strategic plan for developing international markets for U.S. grains and co-products and is submitted to USDA’s Foreign Agricultural Service to spur federal matching funds. “Harmonizing the grain quality inspection standards practiced in the United States with Tunisia would level the playing field and provide the United States better market access,” said Chris Corry, USGC senior director of international operations. Tunisia does not currently impose any type of grain inspection at its borders, basing its import needs strictly on price and availability. This increases the risk of importing poor quality grain, which trickles down to the expense of the local producers. “The Council will work with the Tunisian government to help them develop grain standards at its borders,” he said. “And this is just one example of how the Council identifies constraints in each particular market and determines if the feasibility of fixing them would enhance the U.S. market share. This is what we do.” For Asia, proactive communications will help to market the U.S. advantage. “We heard we may lose some Japan customers based on the 2009 corn quality. However, if we are more timely and transparent with the proper information, customers will be more likely to continue their purchasing needs from the United States. We need to show and reassure our clients that we are at the ready to respond to their needs and concerns,” said Mike Callahan, USGC senior director of international operations. The 2011 UES draft will be discussed and approved by Council members at the 7th International Marketing Conference and 50th Annual Membership Meeting next month. Click here for audio.

China Saw ‘Explosion’ of US DDGS Imports in 2009. The goal of the U.S. Grains Council’s distiller’s dried grains with solubles (DDGS) marketing programs is to gain access to a market and increase the rate of the adoption of the product into commercial feed rations using various means such as nutritional education, feeding trials. The mission is accomplished by product quality and pricing seminars and reducing trade barriers. Last month, the Council sent consultants to Taiwan and China to assess the market in order to determine the level of DDGS product knowledge local producers, nutritionists and importers have in each country. The USGC team was also charged to evaluate the market penetration levels in the various feed market sectors, poultry, swine and dairy, of the importing country. Eric Brandt, a commodity trader for Global Ethanol, said there was substantial growth in both Taiwan and China, but trade barriers on the horizon may pose some threats to import. According to Brandt, there are substantial growth opportunities in Taiwan as he believes they are currently only importing 30 percent of their potential. “Taiwan currently imports 200,000 metric tons of U.S. DDGS versus an estimated potential of 700,000 tons,” he said. “Issues that arose in 2009 going into 2010 include concerns with mycotoxin levels, container availability and a stable supply, and the price after tariffs are applied. The work the Council is doing in Taiwan is very helpful. The education, seminars, technical programs and nutritional services are helping buyers make the decision to buy U.S. DDGS.” China saw an “explosion” of DDGS imports in 2009, said Brandt. An estimated 400,000-500,000 tons will be shipped to China for delivery in 2009. Only 8,000 tons were shipped in 2008. “According to buyers, the demand is substantial and could be up to one million tons for 2010. However, there is major concern about what will happen regarding the DDGS registration,” he said. In May 2009, China’s Ministry of Agriculture (MOA) set regulation requiring processed feed grains products and ingredients, like DDGS, to have registration approval by the MOA before they can be legally imported. “The Council has been working with several of its members in obtaining product registration approval. This should lead to continued growth in China for U.S. DDGS and help overcome some of the potential constraints that could become an issue with future U.S. DDGS exports to China,” said Dan Keefe, USGC manager of international operations.

Grains Council Marketing Arm for US Sorghum Checkoff. The Nebraska Grain Sorghum Producers Association and Grain Sorghum Board (NGSB) hosted its Annual Sorghum Cropping Profitability Seminar Thursday, Jan. 21 in Franklin, Neb. The program featured several speakers, including Alvero Cordero, U.S. Grains Council manager of international operations for marketing, and Florentino Lopez, U.S. Sorghum Checkoff Program marketing director. Cordero and Lopez discussed opportunities for U.S. sorghum in the global marketplace. The Council serves as the marketing arm for the sorghum checkoff. “There are new and exciting things happening within the sorghum industry,” said Barbara Kliment, NGSB executive director. “The seminars are intended to share the latest news and production information to make sorghum production more profitable. Producers are always looking for ways to gain efficiencies and reduce risk while achieving top yields. This program is designed to provide farmers information they can apply immediately to their operations.”

COUNCIL NEWS

Registration Still Available for the Council’s Upcoming Puerto Vallarta Meeting. 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. Contact Valerie Smiley, USGC manager of membership, at 202-789-0789, with any questions.

New Members. Please join the Council in welcoming its newest members Homeland Energy Solutions LLC and Golden Grain Energy, pending Board approval. Walter Wendland, President and CEO for both plants, will be thier delegate. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 641-423-8525 (Golden Grain) or 563-238-5555 (Homeland Energy).

Homeland Energy Solutions LLC operates an ethanol processing plant which produces 100 million gallons of ethanol annually. Based in Lawler, Iowa, the facility serves corn producers in an 11 county area in northeastern Iowa. The purchase of the 37 million bushels of corn will increase the demand for corn and increase its market value. Based on existing industry experience a projected value increase is expected between $.05 and $.08 per bushel. This would amount to an increased income of approximately $1,850,000 to $2,960,000 annually to regional participating producers. The facility also produces significant amounts of distillers’ grains.

Golden Grain Energy is a privately-held company dedicated to adding value to northern Iowa’s corn production by turning locally-grown corn into clean-burning ethanol. The company currently produces approximately 100 million gallons of ethanol annually at the plant in Mason City, Iowa. Owned by more than 750 members, the majority of whom are northeast Iowa farmers, Golden Grain Energy is committed to being a strong partner in the local community, a key player in the regional economy and a leader in Iowa’s ethanol industry. The company employs 45 individuals and purchases more than 33 million bushels of locally-grown corn annually from producers and grain dealers. In addition to ethanol, Golden Grain Energy produces both wet and dry distiller’s grains, providing a feed source for livestock producers. Golden Grain Energy strives to help meet the growing national demand for domestic biofuels, which are the key components of our nation’s efforts to reduce reliance on foreign oil and improve air quality around the country.

Chinese State Administration of Grain visits USGC. A delegation from the Chinese State Administration of Grain (SAG) visited the Council’s headquarters office in Washington, D.C., this week, allowing USGC staff the opportunity to formally recognize and thank SAG for their continued role as the Council’s official sponsor in China and for their assistance in maintaining and renewing USGC office registration. SAG is charged with oversight of the policies, constructions, marketing and supply of grain and grain storage in China. The close working relations and productive technical exchanges between the Council and SAG helps build modern and efficient feed and animal agricultural industries in China, and expand opportunities for trade between the two countries. This important work must continue, and the Council looks forward to many more years of friendship and cooperation with SAG.

USGC Consultant Visits Chinese Swine Producers. USGC Consultant Dr. Gordon Dale Spronk, DVM, Pipestone Veterinary Clinic, traveled to China this week to conduct seminars and visit USGC partner farms to introduce U.S. experiences using modern farming techniques. Program topics included swine disease diagnostics and control strategies; genetic evaluation; sow productivity; record keeping benchmarking and feed technology. Many producers and veterinarians in China are not aware of new advances made in North America. The Council is active in promoting practical swine herd health management technology in Chinese hog industry producers.

NEW ON THE WEB

New Blogs, Photos Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent post includes, “USDA Announces New Availability for Credit Guarantee Program,” 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 . Check out new photos posted on the Council’s Flickr page. The most recent set includes, “Chinese State Administration of Grain visits USGC.” Click the link above to access. No registration required.

DDGS Quarterly Report Posted in The GRAIN Center. The 2009 DDGS Third Quarter Report is now available in The GRAIN Center, the members-only section of the Council’s Web site, www.grains.org. Look for it under the “Briefings, Reports and Presentations,” followed by “Council Publications.” You can also find it on the “What’s New” sidebar located on the left-hand side of The GRAIN Center. For more information, contact Dan Keefe, USGC manager of international operations for DDGS, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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, “Meeting Competition USGC Focus in 2011,” where Marri Carrow, USGC manager of communications, interviewed USGC senior director of international operations Mike Callahan about the importance of the Council’s Unified Export Strategy. 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 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: Thomas C. Dorr, USGC president and CEO, will travel to Wisconsin for the Wisconsin Corn and Soy Expo. 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 .

February 1-6: Steve Vanzant, Ohio Corn Marketing Program; Chester Esther, Illinois Corn Growers Association; and Fred Oelschlaeger, Cargill, will travel to Japan for the Corn Outlook Conference. This conference, organized by the Council in cooperation with Japanese corn importers, end-users and industry, will present the latest information on U.S. and world corn supply, production and demand and changes in future corn supply and demand scenarios; discuss existing and potential benefits of biotechnology and acceptance issues; and give updates on non-genetically enhanced food corn supply from the United States. 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 .

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.