Global Update: January 28, 2010 PDF Print E-mail
Font Size Larger Font Smaller Font
Contact Mike Deering and Marri Carrow at (202) 789-0789   

Download the PDF

US Agricultural Exports are a High Priority for President Obama. In the State of the Union address Jan. 27, 2010, President Barack Obama listed international trade as one of his top priorities for expanding the U.S. economy. “We need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America,” he said as he issued the challenge to double U.S. exports over the next five years, with specific focus on helping ‘farmers and small businesses increase their exports. President Obama emphasized the importance of ‘seeking new markets aggressively,’ in order to create U.S. jobs. He pledged to pursue the Doha trade agreement and to strengthen trade relations with key partners, including South Korea, Panama and Colombia. “It was encouraging to hear President Obama specifically address the immediate need to increase exports in order to stimulate further economic growth. The President mentioned the importance of exports to U.S. farmers. Exports of agricultural commodities will be vital to the economic growth of rural America, the entire country and will also help mitigate global hunger,” said U.S. Grains Council President and CEO Thomas C. Dorr. “I hope the President’s comments are an indication that the Administration will urge Congress to pass pending free trade agreements with Panama, Colombia and South Korea.” In his address, the President also noted the importance of building and adding to the existing renewable fuels infrastructure in the United States, saying, “America must be that nation,” who leads the way for a clean energy global economy. In Iowa, for example, the ethanol industry currently boosts the economy with more than 70,000 jobs and state tax revenues of $532 million. “The 30 year-old renewable fuels industry in Iowa is critical to our agricultural sector, not only through the creation of a homegrown fuel source, but also through dried distiller’s grains fed to livestock,” said Roger Zylstra, a corn grower and livestock producer from central Iowa and a board member of the Iowa Corn Growers Association. “As we look to the future of renewable fuels, we need to be certain that corn-based ethanol is regarded as a sustainable, environmentally friendly, and economically driven fuel source.”

Council Promotes US Grains Around the World. The U.S. Grains Council organized three international teams to travel to the United States this week for educational seminars on modern U.S. poultry operations and production technology. The teams concluded their trip at the International Poultry Expo in Atlanta. First, a team of Taiwanese poultry industry leaders, major feed millers and a university professor attended a course at the University of Georgia. The Taiwanese poultry industry is a major consumer of Taiwan’s imported feed grains. “The Taiwanese poultry industry is constrained by old facilities and equipment as well as outdated production and management technologies. This impacts the feed demand,” said Clover Chang, USGC director in Taiwan, who escorted the team. According to Chang, the Taiwan Council of Agriculture intends to help poultry producers adopt new production models, using updated facilities, equipment and management practices. “The introduction of updated equipment and management practices will help improve the production efficiency of the local feed industry. The Council can have an impact on this change and thus help maintain this major grain-consuming sector,” he said. Second, a team made up of poultry producers from Morocco, Egypt and the Kingdom of Saudi Arabia, partially funded by Council member United Sorghum Checkoff Program (USCP), attended a poultry nutrition course at the International Grains Program at Kansas State University. The third team, also partially funded by USCP, attended a course in New Orleans to learn U.S. Federal Grain Inspection Standards. “Morocco has a zero percent duty on U.S. sorghum and has utilized U.S. sorghum in the past in poultry rations. However, the industry needs some confidence-building experience that will make them much more comfortable using U.S. sorghum in poultry rations,” said Alvaro Cordero, USGC manager of international operations, who hosted the Council booth at the Expo. “In addition, the teams will learn about U.S. export channels for corn, barley, sorghum and their co-products.”

US Farmers’ Checkoffs Carry-out President’s Directive 
By Mike Callahan, U.S. Grains Council Senior Director of International Operations for Asia 
In last night’s State of the Union address, President Barack Obama said he wanted exports to double within the next five years. He said it was vital to our nation that the United States and especially U.S. farmers provide the agricultural products that are sought around the world. I found this encouraging to our efforts of the U.S. Grains Council with the funding from U.S. farmers’ checkoffs and U.S. agribusinesses. For the last 50 years, farmers have invested their own money into building markets around the world for their products. They have seen significant returns on their investment as economies like South Korea and Egypt become developed, turning to the United States to fulfill a portion of their food and feed needs. The USGC 7th International Marketing Conference and 50th Annual Membership Meeting, held Feb. 13-17 in Puerto Vallarta, Mexico, comes at an opportune time as we will take the charge from our Commander-in-Chief and prepare ourselves to increase our marketing efforts. This meeting provides the Council and its members a unique opportunity to coordinate efforts to form a unified front to developing international markets for U.S. corn, barley, sorghum and their co-products. The meeting allows a venue for U.S. producers, agribusinesses and USGC staff to discuss insights and experiences and form an industry approach to the world in the form of a Unified Export Strategy (UES). The UES is the Council’s strategic plan for developing international markets for U.S. grains and co-products. It is submitted to USDA’s Foreign Agricultural Service in order to obtain market development funding, primarily through the Market Access Program and Foreign Market Development program. As President Obama said in his address, he does not accept second place for the United States and we agree. We have 10 international offices and representation in 15 different countries. We work around the world, around the clock to ensure that the United States maintains and increases its market share in existing markets, and finds new markets for U.S. barley, corn, sorghum and their co-products. I hope to see you all in Puerto Vallarta.

Carole Brookins to Keynote US Grains Council Meeting. The U.S. Grains Council’s agribusiness and U.S. farmer members are heading to Puerto Vallarta, Mexico, for the USGC 7th International Marketing Conference and 50th Annual Membership Meeting Feb. 12-17, 2010. Nearly 300 meeting participants will get the opportunity on Sunday, Feb. 14, to hear the Honorable Carole L. Brookins offer the keynote address. “Carole is a tremendous speaker that truly sees the big picture regarding global agriculture,” said USGC President and CEO Thomas C. Dorr. “Council members will hear creative perspectives on the current and future outlook for commodity markets, agriculture, international trade, global development and public policy.” She is currently a managing director of Public Capital Advisors LLC, as well as a director on both corporate and non-profit boards. Brookins served from 2001 to 2005 as the U.S. executive director to The World Bank in Washington, D.C., appointed by President George W. Bush and confirmed by the senate. She worked in commodities at the Chicago Board of Trade and as a vice president of E. F. Hutton in New York. She was founder and CEO of World Perspective Inc., a Washington, D.C.-based consulting firm. During this period, Brookins’ public service included the President’s Export Council and the State Department Advisory Committee on International Economic Policy.

US Grains Council Impressed with FAS Administrator Appointment. USDA recently announced the appointment of John Brewer as its Foreign Agricultural Service (FAS) Administrator. Mr. Brewer brings a wealth of international experience having worked both for the consulting firm Booz Allen Hamilton as an associate on the Global Security/Threat Finance Team and with the Federal Government, working on U.S. policy in Latin America and the Caribbean. U.S. Grains Council President and CEO Thomas C. Dorr said, “On behalf of the U.S. Grains Council, I want to congratulate Mr. Brewer on his new post as the new FAS Administrator. This appointment comes at a critical time for foreign market development in regards to the increase in worldwide feed and food grains competition, pending free trade agreements and the awaiting Doha negotiations of the World Trade Organization. The Council is impressed with Mr. Brewer’s international experience and credentials. We look forward to working with him.”

USDA’s Weekly Export Sales Highlights for January 15-21, 2010
Corn: Net sales of 902,300 metric tons (35.5 million bushels) for delivery in 2009/2010 were down 44 percent from the previous week, but up 17 percent from the prior four-week average. Increases were reported for unknown destinations (278,000 tons or 10.9 million bushels); South Korea (186,300 tons or 7.3 million bushels); Egypt (110,300 tons or 4.3 million bushels, including 50,300 tons or 2 million bushels switched from unknown destinations); Japan (87,900 tons or 3.5 million bushels, including 24,600 tons or 968,000 bushels switched from unknown destinations and decreases of 7,200 tons or 283,000 bushels); Mexico (71,600 tons or 2.8 million bushels); Colombia (49,100 tons or 1.9 million bushels); and Canada (21,300 tons or 839,000 bushels). There were no sales reported for delivery in 2010/2011. Exports of 531,800 tons (20.9 million bushels) were down 36 percent from the previous week and 33 percent from the prior four-week average. The primary destinations were Japan (215,500 tons or 8.5 million bushels); Mexico (111,800 tons or 4.4 million bushels); Egypt (50,300 tons or 2 million bushels); Taiwan (39,900 tons or 1.6 million bushels); Canada (35,500 tons or 1.4 million bushels); and Colombia (31,200 tons or 1.2 million bushels).

Barley: Net sales of 200 tons (9,200 bushels) were for Taiwan. There were no exports reported during the week.

Sorghum: Net sales of 221,400 tons (8.7 million bushels)--a marketing-year high--were up noticeably from the previous week and from the prior four-week average. Increases were reported for Mexico (150,400 tons or 5.9 million bushels); Japan (35,800 tons or 1.4 million bushels); and unknown destinations (35,200 tons or 1.4 million bushels). Exports of 68,700 tons (2.7 million bushels) were to Mexico (41,000 tons or 1.6 million bushels) and Japan (27,600 tons or 1.1 million bushels).

COUNCIL NEWS

New Member. Please join the Council in welcoming Pasternak, Baum and Company as its newest member, pending Board approval. Importers and exporters on six continents have engaged the services of Pasternak, Baum and Co. for more than 70 years. Pasternak is an independent third party intermediary between buyer and seller that provides competitive prices for its clients. Each client is also offered a variety of support services, including the procurement of freight, financing, insurance and logistics management. This full service brokering allows Pasternak to facilitate transactions of commodities for buyers and sellers around the world. The company brokers nearly a third of American corn and wheat products. It employs a knowledgeable staff of brokers with an average of 22 years experience in the commodity-trading field. The company will be represented on the Council by William Gallo, president and CEO, who can be reached at 914-630-8100 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .   

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 travel 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.

USGC President Addresses Attendees at Wisconsin Expo. USGC President and CEO Thomas C. Dorr discussed with the attendees of the Wisconsin Corn/Soy Expo in Wisconsin Dells, Wis., the importance of looking outside the borders of the United States for opportunities for U.S. growers. He said the disappearance of grains through exports is crucial as U.S. farmers are anticipated to have harvested largest corn crop in history at 13.2 billion bushels. Dorr also said the work the Council has done to build export market opportunities for distiller’s dried grains with solubles (DDGS) is “nothing short of remarkable,” with U.S. DDGS exports reaching nearly 5 million metric tons in 2009. Dorr also mentioned he was pleased to hear President Obama recognized the importance of exports in his State of the Union Address and hopes “this is an indication that the Administration will urge Congress to move forward with pending free trade agreements.” Click here for audio.

Sifferath to Head USGC Mediterranean and Africa Office. Cary Sifferath, USGC director in China, accepted the charge to head Council initiatives in the Mediterranean and Africa. Cary has demonstrated solid leadership in China, particularly in the area of distiller’s dried grains with solubles. The Council programs Cary oversaw in China’s growing swine and dairy industries are also significant success stories. Cary will take his talents to the Mediterranean and Africa in March. Cary replaces Kurt Shultz who is now leads the Council’s newest office in Panama.

Staff Travels to Arkansas Corn & Grain Sorghum Board Meeting. USGC Senior Director of International Operations for Rest of the World Chris Corry traveled to Jonesboro, Ark., for the annual producer’s meeting of Council member Arkansas Corn & Grain Sorghum. Corry gave a presentation on Council programs and initiatives made possible by membership investments. Arkansas Corn & Grain Sorghum Board has been a member of the Council since 2004.

Farewell to Mike Deering. Mike Deering has resigned from his post as the director of communications effective Feb. 5, 2010. Mike has been an enthusiastic and strategic thinker who is passionate about the industry. He has made significant contributions to the communications efforts of the Council and his work has been a direct benefit to U.S. producers. Please join the Council in wishing Mike the best of luck as he pursues new endeavors.

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 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, “Statement by Thomas C. Dorr, USGC President and CEO, Regarding the Appointment of John Brewer as FAS Administrator.” 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 .

January Grain News Posted on the Web. The January edition of Grain News is now available on the Council’s Web site, www.grains.org. Grain News is a bimonthly newsletter published by the Council and is circulated to grain importers and end-users around the world. The newsletter contains informative articles about U.S. barley, corn, sorghum and their co-products; U.S. standards and grain trade practices; and current hot topics in grain trade, such as the latest advances in agricultural biotechnology. To read Grain News, go to the “Buying U.S. Grains and DDGS” tab located across the top of the Council’s site.

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

COUNCIL ACTIVITY CALENDAR

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 .

February 13-17: The U.S. Grains Council will host its 7th International Marketing Conference and 50th Annual Membership Meeting in Puerto Vallarta, Mexico. The Council will kickoff the meeting with a keynote address from Carole Brookins, managing director of Public Capital Advisors LLC, who will discuss whether or not we have the right policies and market strategies to succeed in this world of rapid change. The nearly 300 already registered attendees will also hear from Chris Langholz, president of Cargill Ag Horizons U.S., and get market updates from the USGC international staff. USGC Advisory Teams will discuss and approve the 2011 Unified Export Strategy, the Council’s blueprint for marketing plans, submitted to USDA. It’s not too late to register! Contact Valerie Smiley, USGC manager of membership, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for more information.

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