~Special Edition from Puerto Vallarta, Mexico~
U.S. Grains Council’s 7th International Marketing Conference
and 50th Annual Membership Meeting

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Brookins Identifies Market Trends at the USGC Conference
“The U.S. Grains Council has the experience and imagination necessary to make things happen,” said the Honorable Carole L. Brookins in her keynote address at the USGC 7th International Marketing Conference. Nearly 200 meeting attendees heard Brookins present the idea of the world growing from disposability to sustainability in natural resources, production capabilities and lifestyles. “We are moving into a new era of focus on global public goods, including money, trade, climate and environment. With that come global threats: cyber terrorism, fragmented political and economic power, radical groups seeking to control weapons of mass destruction and piracy on the high seas,” she said.

Brookins identified four trends shaping our world today. First – a rebalancing of global wealth and power. “There are shifts in global economic leadership, which creates a wider competition to maintain and grow market share,” said Brookins. Second – a revolution in energy supply and markets. According to Brookins, this is fueled by climate change, resource depletion, energy security and technological innovation. Third – a rebellion against the modern food system. “Activist groups attack the safety and value of the modern food production system,” she said. Fourth – a resurgence of investment in commodities and agriculture. According to Brookins, this will be stimulated through investments, control of the supply chain and economic power.

“Experience shows that sustainable global food security will depend on intensive, large scale agriculture and expanding global trade,” Brookins said. “Both your risks and reward will be multiplied. Your complexity of choices and competition will be magnified. The brand of the Council is highly respected around the world. Renew your mission in 2010 and lead out in a growing, dynamic world of 9 billion lives over the next 50 years. I look forward to watching.”

Watch or listen to her full presentation by clicking here.

Langholz Outlines 5 Tangible Ways to Increase US Exports
At the U.S. Grains Council’s 7th International Marketing Conference, Christopher Langholz, president of Cargill AgHorizons, told an audience of nearly 200 attendees of the Council’s significant role in expanding trade opportunities for U.S. farmers.

Acknowledging the ongoing balancing act between managing supply and demand, he emphasized the need to focus on promoting demand creation to unlock the full potential of the U.S. ag supply chain. “The last 10 percent of demand sold effectively determines the price on 100 percent of supply. If the 1.3 billion bushel corn carry out of 2008 would have been 500 million bushels higher or lower, it would have had a significant effect on the price,” Langholz said, adding that the role of exports is critical. “Exports are a way to get us those extra, critical cents per bushel,” he said. “We want demand that we can see coming — and be able to produce for it.”

Langholz discussed five tangible ways to increase U.S. corn exports:

• Active Trade Policy Agenda. Langholz said that approvals on pending free trade agreements are fundamental to expanding U.S. ag exports. “Market access and free trade are priorities for Cargill and, by extension, for our customers. We want to see the passage of pending trade agreements, and the removal of existing trade barriers,” he said.

• Re-investment in U.S. Export Infrastructure. “The United States has a competitive advantage with the farm-to-market river system,” said Langholz. “We need to invest in our U.S. inland waterways. Keeping that system well-functioning and efficient is key for long-term success.”

• Champion Greater Use of Biotechnology. “We continue making inroads on acceptance of biotechnology, but still face many challenges. Ag biotechnology is thoroughly researched and regulated … we see it as a powerful tool that may help raise living standards around the world. Modern-day biotechnology practices make it possible to maximize crop yields and grow crops in areas of the world that were never before possible,” he said. “Ultimately, we must respect consumer choice by serving the needs of our food and feed manufacturing customers with the full range of grains and oilseeds on the market today.”

• Adaptability and Capability of U.S. Supply System. Langholz said the United States has significant market advantage due to unparalleled capabilities such as combination vessels, fast loading, credible governmental inspection service and flexibility in standardized contract terms. “Our system can accommodate specific customer needs better than our competitors. Having a system that can separate things out to customer specifications gives us a greater opportunity to influence purchasers,” he said.

• Basic Market Development in the Right Sectors. Langholz said, “This is what the Council does best. Do more of what you’re doing.”

“This is not a theoretical exercise,” he concluded. “No other country in the world has the infrastructure and production capabilities of the United States … we need to increase exports as much as possible. Cargill believes in the mission of the Council and, as a charter member, has witnessed its successes over the past 50 years. We look forward to the next 50 years.”

Importance of Free Trade Theme at USGC Conference
Without free trade agreements (FTAs) between the United States and markets in Latin America and Southeast Asia, the United States risks losing export competitiveness, warned U.S. Grains Council directors during the 7th International Marketing Conference. “One of the biggest threats facing the United States is the fact that pending FTAs with Colombia and Panama have not been ratified,” said Kurt Shultz, USGC regional director in Panama.

Shultz and other Council directors delivered international program overviews during one of the conference’s general sessions. “Colombia is the largest market for U.S. corn in the region, and it holds great export potential due to its expanding livestock, swine and poultry industries,” Shultz said. “But until a free trade agreement is ratified, the United States will be at a disadvantage as Brazilian and Argentine have a lower import tariff than U.S. corn.”

Adel Yusopov, USGC regional director in Southeast Asia, echoed similar warnings, citing the ASEAN free trade agreement as an example. “The United States is long-overdue in recognizing the economic significance of Southeast Asia and its potential for U.S. agricultural exports,” said Yusupov. “The region is one of the fastest growing economies in the world and is rapidly becoming a battle ground for economic influence. ASEAN has already ratified an FTA with China, and similar agreements with Australia, New Zealand, Japan and South Korea are on the discussion tables. This means that high value agricultural products from Australia and New Zealand (beef, pork, dairy, etc.) would be entering ASEAN tariff-free. These changes will affect competitiveness of most agricultural exports into the region. The U.S. trade policy makers must act before the idea of a regional community without the U.S. becomes established in Asia. Whatever small steps the United States makes to increase free trade will pay-off significantly in the future.”

While the Council will continue to work at creating avenues for U.S. exports into Latin America and Southeast Asia via its market creation and demand-building programs, it also supports the ratification of free trade agreements between the United States and other countries. Through free and open trade, a win-win situation can be generated for both the United States and the countries it trades with. Click here to listen to the presentations.

Remarks from the CEO 
By Thomas C. Dorr, U.S. Grains Council President and CEO
This is our 50th Annual Membership Meeting, so it is especially appropriate for me, as a relative newcomer, to pause and recognize the vision, dedication and commitment of those who have made the Grains Council the great organization that it is. It is a privilege and a pleasure to be with you today, and to serve as a member of your team.

While we all have different experiences and perspectives, collectively, we share a simple and important mission: to build export markets for U.S. grains, to help feed a hungry world and to increase opportunities for producers, agricultural processors and marketers in all sectors of our industry.

That mission remains as vital today as it was 50 years ago. Our challenge, going forward, is to adapt our strategies to a rapidly changing production environment, to evolving consumption patterns, and to an international marketplace that is bigger, deeper and more dynamic than ever before.

This is a challenge and an opportunity. Our business is not static. Distiller’s grians, ethanol, biodiesel and other biobased products present new market opportunities. There is also risk from policy uncertainty and from a dynamic technology environment that makes it difficult to predict long-term winners.

Nor is supply static. We are in the early stages of the genomics revolution. Rates of adoption will vary, but as these technologies are diffused, as unused and underutilized agricultural land is called back into production, as modern production techniques are adopted internationally, and as population growth continues to moderate, agricultural abundance may become the norm, not the exception, among the nations of the world.

None of this will happen overnight. Nor will it happen uniformly. But over time, it is clear that fundamental economic relationships are being realigned and that old business models will be challenged. And so we must adapt:

• We must continue to improve U.S. infrastructure to ensure that we retain and rebuild a competitive edge in production and transport.

• We must look to new markets. We must ensure that we enhance our capacity to deal with emerging markets outside our traditional logistical infrastructure.

• We must ask, “Are we agile or flexible enough to increase market share in an ever-more competitive international marketplace?”

• We also must ask, “Are we, as an organization, optimally structured for this new environment?”

New markets, products, technologies and new means of communications challenge inherited business models and we must be ready to adapt. That too is part of our legacy.

The point is, simply, that change is a constant. We are here today to celebrate 50 years of service. We are still here because this organization has repeatedly risen to the challenge of change. And working together, we will do so again.

I look forward to having this discussion with you in the months and years ahead. We ARE member led, and it is YOUR bottom line that counts in this discussion. I look forward to working with you. Thank you.

Click here to listen or watch the full speech. 

OTHER MEETING HIGHLIGHTS 

Mexico General Director of Rural Finance Luncheon Speaker
Ernesto Fernandez-Arias, general director of support to rural financing in Mexico, presented to nearly 200 attendees of the U.S. Grains Council’s 7th International Marketing Conference. According to Arias, Mexico’s agriculture industry production maintained a growing trend despite the world economic recession. The implementation of the North American Free Trade Agreement (NAFTA) was significant to Mexico as it has become a world leader in some international food markets. “Food exports have prompted the primary sector output. Agro-industry exports may grow at an annual average rate of 8.5 percent between 2009 and 2012,” he said. Since NAFTA was established, 88 percent of Mexican exports have targeted the North-American market. During this period, 86 percent of Mexican exports have been channeled to the U.S. market.

Mexico Trade Panel
In Tuesday morning’s general session, a question and answer panel discussion on trade with Mexico was held. Allan Mustard, minister counselor for the Office of Agricultural Affairs, U.S. Embassy, Mexico City, introduced the panel.

The panelists and their specialties included:
Enrique Dominguez, director of the pork producers confederation; Ricardo Calderon, executive director of APPAMEX, a grain traders association; and Carlos Lopez Coello, poultry specialist at National University of Mexico.

Watch or listen to the Mexican trade panel by clicking here.

NEW ON THE WEB 

Meeting Video, Audio and Photos Posted
Find video and audio from the USGC 7th International Marketing Conference and 50th Annual Membership Meeting on the Council’s blog, “The Grain Board.” 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 meeting photos the Council’s Flickr account.

Meeting Presentations Posted on the Web
Presentations from the USGC 7th International Marketing Conference and 50th Annual Membership Meeting are being uploaded on The GRAIN Center, the members-only section of the Council’s Web site, www.grains.org. To find the presentations, click on “Briefings, Reports and Presentations,” followed by “Membership Meetings.” You can also find a quick link in the “What’s New” sidebar located on the left.

Own a Piece of Council History
Celebrate the 50th Anniversary of the U.S. Grains Council with a limited addition Farmall 560 Tractor. All proceeds will go to The Grains Foundation. The cost is $50.00 per tractor. All orders are due by February 22, 2010. Tractors will be delivered in July. Click here for more information.

COUNCIL ACTIVITY CALENDAR

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.