Global Update: June 3, 2010 PDF Print E-mail
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Pearson to Keynote at U.S. Grains Council 50th Anniversary Meeting
The Honorable Daniel R. Pearson, vice chairman of the U.S. International Trade Commission, is slated to deliver the keynote address July 20 at the U.S. Grains Council’s 50th Annual Board of Delegates Meeting.

The meeting, to be held July 18-21, 2010, will celebrate the Council’s 50 years of international market development for U.S. corn, barley, sorghum and their co-products.

Pearson intends to look to the future and echo the meeting’s theme, "50 Years of Leadership, Acting on Opportunity," while his remarks will be heavily influenced by the lessons learned through active U.S. agricultural engagement in the global marketplace. He will also cover the challenges that lie ahead in the U.S. feed grains sector.

Pearson’s involvement with the Council dates back to the 1980s when he served on a panel discussing pre-Uruguay Round issues at the Council’s meeting in Traverse City, Mich.

"I recall being impressed with the Council’s unusually diverse membership, which brought together growers and agribusinesses to work on behalf of the overall good of the feed grains sector," Pearson said of his experience.

He served on the Council’s Board of Directors for 10 years, and was involved in three USGC trade policy missions to China and Vietnam. These missions focused on helping government officials, traders and agribusinesses in those countries better understand the types of policy changes they would have to make in order to join the World Trade Organization.

"This has not made either country a perfect trading partner, but it has helped them to develop vibrant livestock feed industries, thus building a demand base and encouraging them to import U.S. feedstuffs when needed," Pearson said.

Pearson said his time spent with the Council made him aware of the importance of international trade and the responsibility of the United States to be a reliable supplier of coarse grains and co-products. "If we want worldwide demand for U.S. agricultural products to be strong, we have to be willing to resist protectionism and defend an open global trading system," he said.

USGC to Japan and the Philippines: Why not Sorghum?
The U.S. Grains Council recently embarked on an informational marketing campaign championing the advantages of U.S. sorghum to feed millers in Japan and the Philippines. The Council led informational workshops in each country where topics were addressed concerning myths about sorghum, as well as its nutritional value as an alternative feed ingredient. Dr. R. Scott Beyer, of Kansas State University, and Alvaro Cordero, USGC manager of international operations, presented the information in an effort to spark interest among end-users in each country.

"One of the main messages we delivered was the nutritional value of sorghum and why it is a better feed grain than many industry users have been led to believe," Beyer said. "Sorghum is high in protein and comparative in feed value to that of corn when formulated to a least-cost feed ingredient. There is a myth that sorghum is a poor feed alternative, but this isn’t true," he said.

Other topics of discussion included the U.S. sorghum supply and demand, as well as its reputation of having low mycotoxin rates and tannin levels; two areas of concern in Japan and the Philippines.

The Council strategically timed its marketing campaign in the Philippines and Japan to coincide with international developments suggesting opportunity for the introduction of U.S. sorghum into each market. Due to its close proximity, Australia has traditionally been a major exporter of sorghum to Japan. However, limited supplies have created an opening for the United States to market sorghum to Filipino and Japanese poultry and swine producers. The Philippines imports between 300,000-1 million metric tons of feed grains (usually corn or wheat) per year to supplement domestic corn supplies, while Japan imports 800,000-1 million metric tons (31.4-39.4 million bushels) of sorghum per year.

"Now is a good time to educate feed millers in Japan and the Philippines about U.S. sorghum as a high quality feed grain," Cordero said. "The combined marketing forces of the Council and United Sorghum Checkoff Program could help open the door for U.S. sorghum’s entrance into each of these Asian markets."

Nebraska Senator Mike Johanns Speaks About his Experiences with the U.S. Grains Council
My relationship with the U.S. Grains Council dates back many years to 1998. I was the governor of Nebraska, and had an interest in selling our products overseas; it was just a natural fit to work with the Council.

One of the first things I learned in terms of marketing our products is that you must build a relationship. It wasn’t enough to sweep in and sign the big contract and sweep out of that country; it doesn’t work that way. You need people on the ground with expertise; you need people who can bring the industry together; precisely what the Council does all around the world. So, rather than trying to reinvent the wheel on the tight budget of a state government, we turned to the Council.

In the state of Nebraska, we’re known for our cattle industry, but in reality, Nebraska’s agriculture is very diverse. We grow barley, wheat, corn and soybeans, and those products need a foreign market.

As the Secretary of Agriculture, I upheld the same goal: to boost export sales. Naturally, I turned to the U.S. Grains Council. Given their experience in countries of the upmost importance and knowledge of the industry, it was the right decision.

Though I’m now a U.S. Senator, my goal is still to boost exports on an international level, and whenever we can we will work with the Council to make that happen. Despite the different positions I’ve held, be it governor, senator or the Secretary of Agriculture, the U.S. Grains Council fit perfectly for helping me to stretch our dollars and sell our products to the best of my ability.

My philosophy is to get everybody working together, in all markets, including our current leading market, China. We have to bear in mind that countries want long term relationships, something the Council has experience with. Foreign countries are not likely to buy from somebody who thinks they can just show up on a Friday and leave on a Saturday morning. They want someone they can rely on, a trusting relationship. This model has worked, it has withstood the test of time and I am confident it will continue to work in the future.

Ultimately, we are doing well in selling our products. We have great products, great producers and an ability to foster lasting friendships. For the future, we must keep doing what the Council is doing; we must build on that expertise and good things are going to happen.

USGC Continues to Service China’s Maturing Swine Industry
China’s swine industry is in the midst of transitioning from backyard and small scale production to large scale production within confined facilities. With this transition comes demand for new feeding, production and health management techniques. Due to its close work over the years with China’s swine industry, the U.S. Grains Council continues to offer technical and management programs that provide the best service to trade.

Dr. Bob Thaler, professor of swine extension and nutrition at South Dakota State University, traveled to China last month to educate swine producers and feed millers on the newly released National Swine Nutrition Guide and FORMULATOR, a least-cost ration balancing program. The workshops were designed to help workers improve their swine nutritional programs and understanding of modern nutritional concepts. Thaler led several workshops, which attracted as many as 300 people from 25 provinces, including leading swine researchers.

The overwhelming interest in Thaler’s sessions reflect the modernization of China’s system and its need for greater quantities of uniform, high-quality feedstuffs to make their operations work.

According to Thaler, that’s where U.S. corn, sorghum, barley and distiller’s dried grains with solubles (DDGS) come into play.

"It doesn’t appear China can produce enough grain for both their human population and livestock. They must import feedstuffs, and the Council has helped position the United States as the market of choice through their long years of service and educational programs," Thaler said. "The increased shipments of corn and DDGS to China we are currently seeing is the fruition of years of building relationships with the leaders of the Chinese swine industry."

COUNCIL NEWS

Register for the Council’s 50th Anniversary Meeting
Registration for the Council’s 50th Annual Board of Delegates Meeting is now available on the Council’s website, www.grains.org.

Join the Council July 18-21, 2010, for a meeting packed full of world renowned speakers.
- Ambassador Carolina Barco, Colombian Ambassador to the United States
- Ambassador Islam A. Siddiqui, Chief Agriculture Negotiator for the Office of the USTR
- Dr. Joseph Glauber, Chief Economist for U.S. Department of Agriculture
- Mr. Hanvar Li, Managing Director and Chief Analyst of Shanghai JC Intelligence Co. Ltd.
- The Honorable Daniel R. Pearson, Vice Chairman of the U.S. International Trade Commission
- The Honorable James Miller, USDA Under Secretary for Farm and Foreign Agricultural Services
- Mr. Richard Fritz, Executive Director for the Food and Agriculture Export Alliance
- The Honorable Clayton Yeutter, former U.S. Secretary of Agriculture
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.

Final Reminder for A-Team Applications
The application process for membership on the Council’s Advisory Teams (A-Team) is now open and applications will be accepted through June 7, 2010. An application can be found at the Council’s website, www.grains.org, in The GRAIN Center under the "Leader Resources" section, followed by "Board of Delegates." You may also contact Shannon Schaffer at 202-326-0607 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

A-Team members serve a two-year term, renewable without limit at the discretion of the Board of Directors. Current members whose terms expire in 2010 (appointed to the Team in 2008) must resubmit applications if they wish to continue to serve on an A-Team. A-Team members with expiring terms have already been alerted of the need to reapply. Interested Council members not currently serving are encouraged to apply. Applications will be reviewed by the Board of Directors and new A-Team members will be appointed during the Board’s meeting, July 21, 2010.

Stakeholder Satisfaction Survey Sent to Members
Every two years the U.S. Grains Council endeavors to formally capture the insights and opinions of its members through its Stakeholder Satisfaction Survey. This online survey helps the Council ensure that it is meeting the needs and expectations of its members. The 2010 survey was e-mailed to all Council delegates and board members of state checkoff organizations this week.

To ensure the survey results together in time to present to the Board of Delegates at the upcoming meeting in July, it is important that members complete the survey before June 11.

The Board of Directors will use the data collected to plot the course of the Council as it moves forward. Member input is invaluable to the continued success of these efforts. Individual responses will not be identified and confidentiality will be maintained. Stakeholders are urged to answer the questions as completely and honestly as possible.

As in past years, the Council is honored to have the Marketing Research Department at GROWMARK, Inc. assisting us with this important tool.

If you have any questions, contact Shannon Schaffer, USGC director of membership, at 202-326-0607 or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

COUNCIL ACTIVITY CALENDAR

June 3-12: A Korean Food and Industrial Corn Import Buyer Team, consisting of five corn import buying managers, will travel to New Orleans and Illinois to review U.S. corn supply and demand. The team will become familiarized with U.S. corn production, marketing and export systems, and see firsthand the United States’ ability to reliably supply sufficient amounts of corn, including non-biotech corn. This team will meet with Council members Eurofins GeneScan Inc., Consolidated Grain and Barge Co., Missouri Corn Growers Association/Missouri Corn Merchandising Council, CME Group and Cargill. For more information, 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 .

June 6-12: Chris Corry, senior director of international operations, and Joe O’Brien, USGC Middle East regional director, will travel to India to meet with the Indian government and industry officials, U.S. officials and those in the field of biotech in India. Topics of discussion will include assessing India’s capacity to change import strategy and policy versus world markets, biotech issues, domestic production capacity and demand and other cultural priorities affecting grain and commodity trade with the U.S. 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 .

June 6-12: Dr. Alvaro Garcia, South Dakota State University, will travel to Peru to address their mislabeling of DDGS in import codes, preventing the importation and use of U.S. DDGS. Dr. Garcia will be accompanied by Kurt Shultz, USGC director in Central America and the Caribbean Region, and Dick Gallagher, Iowa Corn Promotion Board and USGC ROW A-Team member. 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 .

June 6-18: A Taiwanese Hog Producers Training Team will travel to the United States for the World Pork Expo. They will also attend a course at Iowa State University and visit the corn farm of Gordon Wassenaar and tour the Heartland Coop ethanol plant. This team will consist of 14 team members, including: a government official; a researcher; a specialist of National Animal Industry Foundation (NAIF); a representative of Swine Association (SA); and nine hog producers. Clover Chang, USGC director in Taiwan, will serve as the team’s escort. The team members will learn updated production and management technologies of hog farming, including disease prevention, bio-security system, pork quality assurance program and pork inspection. This new generation of leaders will gain familiarity with the production, quality and stable supply of U.S. corn and DDGS and their advantages. For more information, 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 .

June 7-11: Representatives from El Surco, a Costa Rican buying consortium that purchases over 40,000 metric tons of coarse grains monthly on an FOB basis, will travel to the United States to source IP corn. 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 .

June 7-20: A Chinese Swine Technical and Managerial Training Team will travel to the United States to attend the World Pork Expo in Des Moines, Iowa, and visit pig breeders and equipment manufacturers to understand the modern U.S. pork industry. The team will also take part in site visits and a course at Iowa State University. The visits will demonstrate up-to-date pig production technology, which has been introduced during USGC consultant visits to China. Seminars on this trip will help participants promote the hog production. For more information, contact Kimberly Karst, USGC manager of international operations to Asia, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

June 7-11: Representatives from Cerveceria Nacional Dominicana (CND), a brewery in the Dominican Republic, will travel to North Dakota and Montana to explore contract production of malting barley. The team will be escorted by Kurt Shultz, USGC regional director for Latin America and the Caribbean Region. 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 .

June 7-19: A Vietnamese Swine Technical and Managerial Training Team consisting of 18 team members and two Council escorts, Mr. Tran Trong Chien, USGC Vietnam country representative, and Mr. Nguyen Thanh Quang, Vietnam swine technical consultant, will travel to the United States to attend the World Pork Expo. The team will also attend a course on specialized training in swine farm design and management at Iowa State University. This program’s ultimate goal is to indirectly promote sales of U.S. corn, sorghum and their co-products through demand building programs in the Vietnamese commercial swine sector. For more information, contact Kimberly Karst, USGC manager of international operations to Asia, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

June 9-15: A Chinese Corn Starch Team will travel to the United States to attend the Corn Utilization and Technology Conference. After the conference, the team will visit a corn farm, ethanol plant and tour the National Corn to Ethanol Research Center. For more information, 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 .

June 13-19: The Council will organize educational DDGS Workshops in Japan, inviting Dr. Al Miron, Dr. Barry Robinson from Great Northern Livestock Consulting Ltd.; and Dan Keefe, USGC manager of international operations – DDGS. Workshops will provide information on U.S. DDGS export availability, shipping, nutrition and utilization focusing on DDGS market for beef production in Japan. The workshops will be held in three locations, Tokyo and two livestock industry areas. U.S. DDGS suppliers will be encouraged to attend. The Council will invite local livestock producers and influential commercial farms, feed companies, trading companies and distributors, to provide them with updated information on supply and demand, export availability and transportation of DDGS. For more information, contact Keefe at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

June 13-19: The U.S. Grains Council and American Soybean Association will jointly conduct exclusive, customized buyer simulation programs for targeted companies within Southeast Asia. This Multi-Cooperator Workshop, held in Singapore, will bring together key experts to facilitate these customized hands-on programs. The exclusive training programs will incorporate case studies and current market conditions that will address topics such as price management, contract specifications and dispute resolution, sea freight and logistics, and least cost feed formulation. These customized programs will involve key personnel from the Finance, Purchasing, Logistics and Nutrition departments of each company. For more information, 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

 
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