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USGC to Lead DDGS Feedlot Demonstration in Canada; Increased Demand for US DDGS Expected to Follow
As North America increased the production of fuel from renewable sources, ethanol production surged, simultaneously producing considerable volumes of the co-product distiller’s dried grains with solubles (DDGS). The U.S. Grains Council believes DDGS has the potential to produce finished cattle with improved carcass quality, due to its bulk density and oil content. In an effort to validate the quality of DDGS, the Council has joined forces with several industry parties to facilitate a DDGS demonstration at a commercial feedlot in Alberta, Canada. The Canadian feedlot industry currently utilizes inclusion rates of 15 percent to 20 percent U.S. DDGS. The demonstration aims to support small scale research conducted at the University of Saskatchewan which has shown significant feed efficiency improvements due to increased corn DDGS inclusion rates of 30 percent and 40 percent.

According to Neil Campbell, USGC consultant in Canada, the demonstration will begin in March. It will include inclusion rates of 20 percent, 30 percent and 40 percent and will be fed to approximately 5,000 cattle.

“Canada is the number two market for U.S. DDGS exports, importing 803,674 metric tons in 2009,” Campbell said. “The successful demonstration of these higher inclusion rates is expected to increase the demand for U.S. DDGS by 200,000 to 300,000 tons.”

Throughout the demonstration, the Council will work closely with nutritionists Darryl Gibb and Tim McAllister of Agriculture and Agri-Food Canada; Barry Robinson of Great Northern Livestock Nutrition Consulting Ltd. and with financial support from the Alberta Livestock and Meat Agency (ALMA); Rycom Trading; and Glacial Lakes Energy of South Dakota.

5 Minutes with Rick Tolman, National Corn Growers Association CEO
How does NCGA work with the U.S. Grains Council on a organization level? 
We have a long history of working together. In fact, National Corn Growers is one of the founding members of the Council and I spent 18 years working for the Council. A lot of the same leaders come and go through each group. On a practical sense, we consider the Council our international trade partner. They are our sister organization that does international trade. They’re very good at it, that’s their expertise. We do the domestic side of things -- lobbying, trade policy. We cooperate on biotech issues, sharing information, and joint communications. We have a really strong working relationship.

What does NCGA Hope to See on the Council’s Agenda?
We are interested, of course, in keeping our corn export numbers up, and also in expanding exports of other value-added products. The Council has done a great job of promoting the export of U.S. distiller’s grains. The real growth market for NCGA members is ethanol and biofuels use. One-third of the corn that goes into the ethanol plant comes out as distiller’s grains. While we can use a lot of it here in the United States, there is enough that we need to have a home for it internationally. We’re interested to see the things the Council is doing to continue to expand that market. It’s an area we cooperate closely. We share technical information with them on how it’s used in feed rations and they’re able to get that information to people overseas. They bring the buyers here to the United States so they get to see how people are using it here.

What are some of the challenges NCGA sees with the Renewable Fuel option?
Well, there’s just a whole list of challenges and opportunities. Two weeks ago the EPA (Environmental Protection Agency) announced the final rules on the Renewable Fuel Standard II and how they were going to implement that. There were some welcome new changes where they clarified things, made some improvements in their preliminary plan. There are some nuggets we’re going to pull out of that and be able to move forward. It gives hope and optimism to the ethanol industry for growth. But one of the biggest things that came out of that, which is still a huge challenge, is they are still giving a very significant penalty to the ethanol industry for indirect land use change. That is like tying an anvil around the ankle of the industry and trying to move forward to compete. It’s one issue that we have to continue to try and work for with EPA and perhaps the legislative channel to get that changed. It is an unfair, unreasonable ruling that EPA has put on the industry. And it’s exclusive to ethanol. It’s not being applied to oil, the electricity industry or anything else. That’s probably our biggest challenge that we’re working on with the ethanol industry.

What is the hot topic item for NCGA right now?
One of the things we’re really excited about is that we’re engaged in a very active and aggressive image and activism campaign. I’m sure many are aware of the negative things that come out about agriculture and the misinformation. We’re working with the United Soybean Board and several other groups to try and put the right facts and information out there. We’re working with good folks in the media and others to do that, but one of our greatest tools is the individual farmers. We want an aggressive, active army of farmers who are shedding the light on the facts and misinformation. When things get in the news that just aren’t right, not only with corn, but all of agriculture, we all need to set the record straight. We’re doing some training, we’re trying to get tools out there to farmers so they can have the facts, figures and information.

For more information about this campaign, check out www.ncga.com.  

Midwest Corn Growers Promote Their Products in Mexico
Iowa, Nebraska and Illinois corn growers and staff extended their recent travel in Mexico for the U.S. Grains Council’s 7th International Marketing Conference to include face-to-face meetings with beef and pork producers, commodity traders, feed mills, and even the rail transportation system in Mexico. USGC Manager of International Operations Alvaro Cordero escorted the group.

While in Guadalajara, the group visited a small feed mill that produces for its own and nearby animal producers. This was in stark contrast to the much larger feed mill they toured using 300 tons of distiller’s dried grains with solubles (DDGS) per month and producing about 4,000 tons of feed per day. The facility also utilized a large pelletizer for poultry feed and was importing about 30 percent of their corn needs.

During lunch with the Feedmill Association, Larry Klever, a corn grower from Iowa and a director on the Iowa Corn Promotion Board, was able to ask about grain quality. The feed mill association members expressed their happiness with DDGS use in their dairy operations and correlated their increase in dairy production to DDGS. “I believe we have a growing market in both quality corn and DDGS from what I witnessed on our tour. A feedlot that we toured includes 15 percent DDGS in their rations today and couldn’t stop talking about how much they liked it,” said Klever.

Klever has already had follow-up conversations after the meetings. “I think seeing and meeting with the producers, touring the transportation system and shaking hands with the feed mill representatives, was crucial for the extended tour. The personal connection is something invaluable to build their confidence in our corn quality,” he said. “In fact, I received an e-mail today looking for corn grown in the Midwest from a contact made on that visit.”

USDA’s Weekly Export Sales Highlights for February 12-18, 2010
Corn: Net sales of 401,300 metric tons (15.8 million bushels) for delivery in 2009/2010 were down 59 percent from the previous week and 55 percent from the prior four-week average. Increases were reported for South Korea (230,300 tons or 9.1 million bushels, including 172,600 tons or 6.8 million bushels switched from unknown destinations); Japan (213,400 tons or 8.4 million bushels, including 83,300 tons or 3.3 million bushels switched from unknown destinations); Egypt (63,300 tons or 2.5 million bushels, including 60,000 tons or 2.4 million bushels switched from unknown destinations); Peru (60,000 tons or 2.4 million bushels); Syria (48,000 tons or 1.9 million bushels); Mexico (28,100 tons or 1.1 million bushels); and the Dominican Republic (27,500 tons or 1.1 million bushels). Decreases were reported for unknown destinations (299,900 tons or 11.8 million bushels). Net sales of 50,000 tons (2 million bushels) for delivery in 2010/2011 were for unknown destinations. Exports of 1,240,600 tons (48.8 million bushels) -- a marketing-year high -- were up 90 percent from the previous week and 71 percent from the prior four-week average. The primary destinations were Japan (420,400 tons or 16.6 million bushels); South Korea (288,000 tons or 11.3 million bushels); Mexico (248,900 tons or 9.8 million bushels); Taiwan (129,100 tons or 5.1 million bushels); Egypt (63,300 tons or 2.5 million bushels); Costa Rica (25,200 tons or 992,000 bushels); and Canada (20,600 tons or 811,000 bushels). Note: Accumulated exports were adjusted down for Cuba (24,500 tons or 965,000 bushels).

Barley: Net sales of 15,500 tons (712,000 bushels) were for Canada. Exports of 200 tons (9,200 bushels) were to Canada.

Sorghum: Net sales of 106,400 tons (4.2 million bushels) were primarily for Mexico (91,500 tons or 3.6 million bushels); unknown destinations (10,000 tons or 394,000 bushels); and Morocco (7,000 tons or 276,000 bushels). Decreases were reported for Japan (1,200 tons or 47,000 bushels). Net sales of 30,000 tons (1.2 million bushels) for delivery in 2010/2011 were for Mexico. Exports of 170,800 tons (6.7 million bushels) -- a marketing-year high -- were up 29 percent from the previous week and noticeably from the prior four-week average. The destinations were to Mexico (91,200 tons or 3.6 million bushels) and Japan (79,600 tons or 3.1 million bushels).

NEW ON THE WEB 

Monthly Management Reports (MMRs) Posted in The GRAIN Center
The January 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 . 

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 were 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.

COUNCIL ACTIVITY CALENDAR 

March 2: U.S. Grains Council President and CEO Thomas C. Dorr will participate in a press conference in Tokyo, Japan, at FOODEX, an international food show, to launch the “Partners in Agriculture” celebration. Other speakers include the U.S. Ambassador and Japanese industry and government officials. “Partners in Agriculture” is a celebration dedicated to commemorate the success of USDA’s cooperator program. For more information, contact Kimberly Karst, USGC manager of international operations for Asia, as This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

March 4-6: The U.S. Grains Council will host booth #633 at the Commodity Classic event in Anaheim, Calif. USGC Chairman Rick Fruth and Senior Vice President of Operations and Industry Relations Keith Heffernan will also host a news conference at the event on Friday, from 12:30 – 1:00 p.m., to announce “Partners in Agriculture” events and activities. USGC Chairman Terry Vinduska will also represent the Council during the trade show. For more information, contact Marri Carrow, USGC manager of communications, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

March 10-11: Rebecca Fecitt, U.S. Grains Council director of biotechnology programs, and USGC Trade Policy Advisory Team Leader Chip Councell, delegate for Maryland Grain Producers Utilization Board, will attend the Monsanto Grower Advisory Council Meeting in Washington, D.C. Topics in the meeting will include updates on biotech regulatory and policy; sustainability; and Monsanto’s sponsorship of the television program “America’s Heartland.” For more information, contact Fecitt at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

March 7-13: U.S. Grains Council Board of Directors will travel to the Dominican Republic, Colombia and Panama for the USGC Board and Officers Mission. The Board of Directors include Rick Fruth, Terry Vinduska, Wendell Shauman, Don Fast, Jim Broten and Julius Schaaf. USGC staff accompanying the Board Thomas C. Dorr, president and CEO, Chris Corry, senior director of international operations, and Kurt Shultz, director in Latin America and the Caribbean Region. The team will assess the current U.S. market share and potential opportunities in each country. They will follow up with current local contacts and share market intelligence. The team will also meet with local government officials and USDA and USAID representatives. The travel will conclude in Panama, coinciding with the grand opening of the Council’s new office for Latin American and the Caribbean Region. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

March 7-13: Snack food industry leaders from Costa Rica and Guatemala will travel to the United States to attend a snack-foods processing course at Texas A&M University. The team will be escorted by USGC Regional Consultant Alejandro Gonzalez. For more information, contact Gina Tumbarello, USGC manager of international operations for Rest of the World, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  

March 11: U.S. Grains Council Director of Membership Shannon Schaffer will participate in the Arkansas Corn and Grain Sorghum Board meeting via video conference. Schaffer will discuss Council programs and goals and the Board’s investment in the Council. For more information, contact Schaffer 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.