Download the PDF

Good Japanese Rapport Vital to Continued US Corn Market
Japan is the largest U.S. corn export market, consistently importing approximately 16 million metric tons (630 million bushels) of U.S. corn each year. With the recent attention to U.S. corn quality and the use of biotechnology, it is more important than ever that U.S. producers stay connected to their international customers.

This week, U.S. Grains Council representatives Steve Vanzant, Ohio Corn Marketing Program; Chester Esther, Illinois Corn Growers Association; and Fred Oelschlaeger, Cargill, traveled to Tokyo for the Corn Outlook Conference. Site visits and the conference, organized by the Council in cooperation with Japanese corn importers, end-users and industry, allowed the USGC team to discuss U.S. and world corn supply, production and demand with attendees. It also allowed the team to discuss existing and potential benefits of biotechnology and acceptance issues.

“One Japanese expert asked me about the high moisture and dust content of recent U.S. corn imports. I told him honestly, we have had two consecutive years of unusual weather patterns and it resulted in only 60 percent of corn harvested by mid November. The late harvest forced farmers to mechanically dry it, generating broken kernels,” said Vanzant, who is also a member of the USGC Asia Advisory Team. “It is important to keep an open and honest rapport with our customers. Developing one-on-one relationships helps to establish trade deals. When they feel that we are there to fulfill their needs, and they trust us, more business deals are probable.”

See You in Puerto Vallarta! 
By Shannon Schaffer, U.S. Grains Council Director of Membership
The U.S. Grains Council’s 7th International Marketing Conference and 50th Annual Membership Meeting is just more than a week away and the excitement is building. There will be almost 300 individuals, including attendees, Council staff, speakers and guests, flying into Puerto Vallarta, Mexico, for this meeting. This will make it one of the largest regular Council meetings ever!

The theme for the meeting is “50 Years of Leadership: Acting on Opportunities.” This captures our desire to celebrate the Council’s history, while looking forward and working on the future. Future planning will be a key thrust of the meeting.

The work Council members will be doing in Mexico is critical to the continued success of the Council. This meeting is no vacation! It brings our key international staff together with our membership to work on the Unified Export Strategy, or UES, which will serve as the blueprint for the Council’s programming in the future. The input from the Council membership, provided through the Advisory Team (A-Team) meetings, is invaluable in assuring that our programming truly meets the industry needs. The Council is an organization driven and run by its membership.

In addition to the UES, members attending the meeting have been asked to provide input about issues that may affect their business and U.S. agricultural trade in general over the next two or three years. This initial discussion will be focused on three topics: Global competition in export markets for coarse grains and products; product differentiation to add value and capture markets; and innovative use of technology in market development efforts. Each A-Team will have time set aside in their agenda to discuss these topics.

Beyond planning the future of the Council, attendees will also hear from internationally recognized speakers to help put the issues of the day in context for the work they are doing. Carole Brookins, managing partner of Public Capitol Advisors LLC, and former U.S. executive director of the World Bank, will discuss the policies and strategies necessary to address the mounting changes facing the world today – from climate change to financial changes. Christopher Langholz, president of Cargill’s domestic trading arm, will be on hand to talk about the challenges facing increasing U.S. exports, from competition to transportation issues. Attendees will also hear from Pedro Gonzales Hernandez, an under secretary for agribusiness issues in the Mexican Department of Agriculture, about the future of U.S. trade with Mexico.

The Council depends on involvement by its members to make its projects as effective as possible. Meetings like this one in Mexico and the July Board of Delegates Meeting in Boston are a key way for the Council to get the necessary input for Developing Markets, Enabling Trade and Imporving Lives.

Syria Enforces Levy on Imported Corn, Barley, USGC Expects Duties to be Eliminated
In an effort to encourage local production and generate revenue for the national treasury, Syria has recently imposed import duties on corn and barley, the U.S. Grains Council has learned.

The duties were originally set at $77/metric ton but have since been scaled back due to industry pressure. They are currently at $22/ton for corn and $44/ton for barley.

According to Joe O’Brien, USGC regional director in the Middle East and Subcontinent, local importers and manufacturers of feed and starch products feared their products and exports would become uncompetitive as a result of the duties, giving impetus to smuggling. In response, they lobbied their government for a levy reduction. O’Brien said there is continued industry pressure to have these duties removed entirely.

“Domestic production of both grains has been flat within the past few years as imports have increased,” he explained. “Local corn production in the past five years has varied from 125,000 tons to 200,000 tons. Harvested grains have been of poor quality with poor drying and storage. Production has not been able to satisfy the demand of around 2 million tons.”

While the United States has lost market share in Syria, dropping from 80 percent to about 27.4 percent (494,000 tons or 19.4 million bushels) for corn in 2009, O’Brien reports that traders feel these new duties will not have much of an impact. Market intelligence has shown that any loss of U.S. market share in the country can be attributed to price, access to the Black Sea and attractiveness of smaller vessel purchases.

According to O’Brien, Syria’s levies have not come as a complete surprise as the Syrian government has taken similar measures in the past. As Syria currently imports about 1.8 million tons (70.9 million bushels) of corn, the Council will continue to monitor the Syrian market and service customers in the country.

USDA’s Weekly Export Sales Highlights for January 22-28, 2010
Corn: Net sales of 923,200 metric tons (36.3 million bushels) for delivery in 2009/2010 were up 2 percent from the previous week and 15 percent from the prior four-week average. Increases were reported for Mexico (376,800 tons or 14.8 million bushels); Japan (234,700 tons or 9.2 million bushels, including 109,500 tons or 4.3 million bushels switched from unknown destinations and decreases of 42,300 tons or 1.7 million bushels); unknown destinations (89,700 tons or 3.5 million bushels); Taiwan (69,300 tons or 2.7 million bushels, including 25,400 tons or 1 million bushels switched from Japan and decreases of 2,000 tons or 79,000 bushels); Peru (40,600 tons or 1.6 million bushels); Egypt (32,200 tons or 1.3 million bushels, including 28,900 tons or 1.1 million bushels switched from Taiwan); and Colombia (26,500 tons or 1 million bushels). Net sales of 3,000 tons (118,000 bushels) for delivery in 2010/2011 were for Guatemala. Exports of 1,123,000 tons (44.2 million bushels) were up noticeably from the previous week and 59 percent from the prior four-week average. The primary destinations were Japan (415,800 tons or 16.4 million bushels); South Korea (230,200 tons or 9.1 million bushels); Mexico (181,500 tons or 7.1 million bushels); Egypt (114,900 tons or 4.5 million bushels); Colombia (30,500 tons or 1.2 million bushels); and Panama (27,600 tons or 1.1 million bushels).

Barley: Net sales of 100 tons (4,600 bushels) were for Mexico. There were no exports reported during the week.

Sorghum: Net sales of 78,700 tons (3.1 million bushels) were for Mexico (60,500 tons or 2.4 million bushels) and Japan (26,300 tons or 1 million bushels, including 13,100 tons or 516,000 bushels switched from unknown destinations). Decreases were reported for unknown destinations (8,100 tons or 319,000 bushels). Exports of 89,300 tons (3.5 million bushels) were to Japan (45,600 tons or 1.8 million bushels) and Mexico (43,700 tons or 1.7 million bushels).

COUNCIL NEWS 

USGC 2009 Annual Report and 2010 Directory Mailed Feb. 5. Council delegates should check their mailboxes next week as the Council’s 2009 Annual Report and 2010 Directory will be mailed Friday, Feb. 5, 2010. The electronic versions will be available soon on the Council’s Web site, www.grains.org. For more information or questions, please contact Marri Carrow, USGC manager of communications, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

Nebraska Leadership Program Learns About Export Markets. The Nebraska Corn Growers Association Leadership Group traveled to Washington, D.C., this week, making a stop at the USGC headquarters. USGC directors discussed with the group the role of the Council, the regions it focuses on and the current constraints and opportunities in those markets.

Haberman to Head USGC Finance and Administration. Please join the Council in congratulating Margaret Haberman on her new position as USGC director of finance and administration. Margaret joined the Council in 1980 and served many roles in the finance and administration department. After a six year departure, she returned to the Council in 2008 to fulfill the manager of administration position. Margaret received an accounting degree from the University of Central Missouri and is a Certified Public Account.

Application Reminder - Overseas Opportunity for College Ag Students. The Grains Foundation and the National FFA Organization are accepting applications for the International Collegiate Agricultural Leadership (I-CAL) program. The 12 undergraduate students selected 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.

Farewell to Hillary Bennett. USGC Executive Assistant Hillary Bennett resigned from her post effective Feb. 12. Hillary joined the Council in 2007 and has contributed significantly to the Council’s efforts, keeping day-to-day operations running smoothly. Hillary received the USGC Employee of the Quarter award and the USGC 2009 Employee of the Year award. The Council wishes Hillary the best of luck in her 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, Photos Posted Frequently. Check out the latest entries on the Council’s blog, “The Grain Board.” The most recent post includes, “USGC Supports Farm Bureau’s Call to Congress to Support FTAs,” 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 the Council’s Flickr account for the most recent photo sets. The newest set includes, “Corn Outlook Conference - Japan.” Click the link above to access.

2009 Market Profiles Updated on USGC Web site. Profiles of the markets the Council is active in have been updated with 2009 information on the Council’s Web site, www.grains.org. Updated annually, these profiles include population and gross domestic product growth, and supply and demand information for corn, barley and sorghum. To access these profiles, click on the “Barley, Corn & Sorghum” tab from the Council’s homepage, followed by “Market Profiles.” You can also click here.

COUNCIL ACTIVITY CALENDAR

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.

USGC staff will be present at the following meetings to discuss Council programs and initiatives around the world. Contact Shannon Schaffer, USGC director of membership, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it  for more information.

February 10: USGC Director of Membership Shannon Schaffer will present at the Arkansas Corn and Grain Sorghum Board via video conference.

February 15: USGC Consultant Ken Hobbie will present at the Virginia Corn Board meeting.

February 17-20: Representatives of Iowa Corn Promotion Board, Illinois Corn Marketing Board, Nebraska Corn Board and Hawkeye Gold will travel throughout Mexico for site visits of local industry. This Corn Producer & Industry Assessment team will be accompanied by Alvaro Cordero, USGC manager of international operations for marketing, and Julio Hernandez, USGC director in Mexico. For more information, contact Cordero 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.