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USGC’s Spring China Crop Tour Concludes Huge US Corn Potential 
Opportunity exists for China to import a “huge” amount of U.S. corn to meet its current market demand, before the 2010 crop enters the market, said U.S. Grains Council Assistant Director in China Sam Niu Yishan. This observation came subsequent to the Council’s spring tour of Northeast China’s corn crop production and supply, which concluded June 3, 2010.

Separated into three groups, nine experts in the international grains trading field, including members of USDA’s Foreign Agricultural Service, traveled more than 3000 kilometers (1,864 miles) throughout the Chinese Provinces of Heilongjiang and Jilin. The team also met with officials from Heilongjiang Grains Bureau and Jilin Agricultural Committee to exchange opinions on China’s crop production as well as its 2010 planting adversities.

“China’s 2010 corn planting acreage is lower than expected, due to abnormal rains, snow and temperatures this spring,” said Yishan. While planting corn is more desirable due to current corn market conditions, Yishan said 2 to 3 percent of intended corn planting did not occur. Instead, farmers planted other crops such as green beans, sunflowers and corn silage.

Despite the 15-18 day planting delay in Heilongjiang, corn germination was ideal and the weather conditions were the best they’ve been in recent years. However, according to Yishan, the corn looked “not as strong as normal,” which could impact yield.

China’s corn stock supplies were reconfirmed with more than a 15 percent reduction, while current supplies show significant signs of degradation.

“The current corn quality is of concern with about a 20 to 30 percent mold problem in some corn storage facilities. This was caused by increased rains and snows but also because farmers put ears on the ground with wet and high temperatures for an extended period of time,” said Yishan, also noting the moisture was as high as 38 percent during harvest. “This moisture situation will surely affect the market supply in the upcoming months, before the new crops come into the market.”

The market depends on the government’s sales of reserves either by auction or import, especially considering meeting the demand in Southern China from August to October. Yishan said there were very few temporary reserves left for auction by the government, leaving it with only two options: to sell the national reserves, which are not as large as expected, or import.

Developments in Europe Could Open the Door for More DDGS Exports 
Europe’s slowed economy has presented challenges for European feed buyers, but also potential opportunities for U.S. farmers and ethanol producers, particularly for the export of distiller’s dried grains with solubles (DDGS). Capitalizing on this window of opportunity, the U.S. Grains Council recently conducted DDGS marketing workshops in Dublin, Madrid and Rotterdam in an effort to introduce buyers and sellers to one another and to market the United States’ ability to meet the needs of each country.

According to Dan Keefe, USGC manager of international operations, there continues to be strong European interest in the ethanol co-product, particularly due to the region’s current economic situation.

“The concern right now is about price and quality,” he said. “You can get substitute feed ingredients (mainly wheat and barley) in Europe but the prices are gradually going up. To the European feed buyer, DDGS may be cheaper on the international market.”

Already in 2010, two European countries have purchased shipments of DDGS: Ireland and Spain.

“Ireland imported 84,500 metric tons between January and March,” Keefe said. He also noted that Spain’s purchased 9,163 tons this year despite the fact that the United States is not usually price competitive in that country due to Spain’s easy access to wheat from the Mediterranean.

While the declining euro makes U.S. dollar-based DDGS less price-competitive in Europe overall, if U.S. DDGS prices decline further, relative to domestic corn this summer, then the United States could see more purchases from Spain and Ireland in the coming months. According to Keefe, the market potential for the European Union is approximately 1.5 million tons in total, and the United States is competitively priced in at least two countries and break even to substitute feeds in a few more.

Keefe said that while in Europe, the team also met with a delegation from Turkey where the potential demand is 500,000-1 million tons for DDGS and corn gluten feed. Currently, U.S. origin prices are very competitive compared to their local feed ingredient alternatives on a landed price basis. “If the Turkish market fully reopens to imports of biotech corn products, the United States will see a rapid resumption of DDGS and CGF imports to Turkey,” Keefe said.

All this is reason enough for U.S. producers and distillers to be optimistic as developments in the EU region point to new opportunities for DDGS export growth. Jim Hansen of POET Nutrition in Sioux Falls, S.D., was among several USGC members who attended recent workshops in Europe with the Council. According to Hansen, the Council-led meetings were a great success; they were well-attended by feed millers who were very interested in importing DDGS and the meetings produced promising results.

“Upon my return from Europe on Memorial Day weekend, I came back to find three e-mails waiting for me. One from Ireland, one from Spain and one from Turkey, each requesting a quote,” Hansen said. “I think that alone attests to the success of the seminars and the growing interest in DDGS in Europe.”

By Jodi Kiely, USGC Contributing Writer

Colombia Ambassador Barco to Address USGC’s 50th Annual Board of Delegates Meeting 
Colombia Ambassador to the United States Carolina Barco Isakson will be a keynote speaker at the U.S. Grains Council’s 50th Annual Board of Delegates Meeting July 18-21.

“We are excited to have Ambassador Barco address our members during the Council’s 50th Anniversary Meeting,” said USGC President and CEO Thomas C. Dorr. “The pending free trade agreement between the United States and Colombia remains an item of significance to the Council and its members. Ms. Barco’s upcoming speech comes at a crucial time as the Council works to educate policy makers on the urgency of ratifying the free trade agreement with Colombia.”

Appointed as Colombia’s Ambassador to the United States in August 2006 by President Alvaro Uribe, Barco has a strong international background having served as Colombia’s Minister of Foreign Affairs between 2002 and 2006. She also worked as the international cooperation adviser to the United Nations Development Program, as researcher at the Universidad de los Andes, and as a Board of Director of the Lincoln Institute of Land Policy.

Ambassador Barco has a Bachelor’s degree in social and economic sciences and a Master’s degree in business administration and urban and regional planning.

U.S. Proposes Non-hazardous Classification for DDGS, USGC Led Effort
This week, the Untied States transmitted a proposal to the International Maritime Organization (IMO), a United Nations body that establishes international shipping rules, regarding the shipping classification of distiller’s dried grains with solubles (DDGS).

About eight months ago, the U.S. Grains Council became actively involved in the confusion raised over the shipping classification of DDGS, which has led to disruptions in the shipping of the ethanol co-product, increasing the potential of significant cost hikes for transportation. The concerns were raised by insurance companies and shippers, as DDGS is not currently classified by the IMO. In the absence of this classification, insurance companies consider it “seed cake,” generally classified as a hazardous material.

The Council spearheaded an industry effort that sponsored laboratory tests and gathered technical information to encourage the classification of DDGS as a non-hazardous material. Erick Erickson, USGC special assistant to the president, contacted the U.S. Coast Guard, which represents the United States in the IMO, and submitted the findings. The Coast Guard worked with the Council to develop a proposal, and Tuesday endorsed the proposal and submitted the document to the IMO for its consideration.

“If the proposal is approved by the IMO, this new classification will eliminate confusion as it will clearly define DDGS as non-hazardous,” said Erickson. “In the interim, we can share the proposal with insurance companies and ship owners to educate them about the safety of shipping DDGS.”

COUNCIL NEWS

Register for the USGC International Distillers Grains Workshop held in Southeast Asia
The U.S. Grains Council, in partnership with USDA’ s Foreign Agricultural Service (FAS), is sponsoring a DDGS seminar and trade conference in Southeast Asia July 29-Aug. 11, 2010. The Council extends an invitation to U.S. DDGS exporters and producers to attend this seminar to initiate face-to-face introductions with foreign end-users and importers.

The Southeast Asia Road Show will focus on DDGS promotion in the growing poultry (broiler, layer, duck) feed sector. Participants will visit four markets: the Philippines, Thailand, Malaysia and Indonesia, where seminars, technical workshops and one-on-one consultations will be held. The program in Thailand will be a part of the SEA Feed Quality Conference. The target audience includes local traders, independent feed milling companies, integrators and large poultry producers with on-farm mixing capabilities. The program will serve as a platform for information exchange as well as buyer and seller interaction.

The Council will assist members with hotel arrangements, but travel and hotel costs will be the responsibility of the participant. The Council and FAS will pay for the seminars, reception, marketing materials and translators.

If interested in attending, please contact Kimberly Karst at This e-mail address is being protected from spambots. You need JavaScript enabled to view it  or 202-326-0637.

Stakeholder Satisfaction Survey Due Tomorrow
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 .

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
- Richard Fritz, Executive Director for the Food and Agriculture Export Alliance
- The Honorable Clayton Yeutter, former Secretary of Agriculture

Contact Valarie 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.

COUNCIL ACTIVITY CALENDAR

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 .  

June 20-25: A team of feed millers and end-users from Central Mexico, both poultry and swine, will travel to Texas and Kansas to meet directly with traders and elevators that source and deliver shuttle trains of grain sorghum on a monthly basis. 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 .  

June 20-26: The Council will organize two one-day workshops together with small trade shows by the U.S. DDGS suppliers in China. Mr. Robert Middendorf, Gavilon, and Dr. Jerry Shurson, of the University of Minnesota, will provide presentations on the current U.S. DDGS supply and demand outlook, world market for DDGS and logistical issues. Local Chinese buyers and end-users of U.S. DDGS will discuss their own results in increasing use U.S. DDGS in their formulations. USGC members that are U.S. DDGS suppliers/exporters will be invited to these workshops. 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 .  

July 20-26: The Council will sponsor a Chinese DDGS Team to travel to Minnesota, Iowa, Illinois and California. The purpose of this team will be to further develop and strengthen the relationships between Chinese DDGS buyers and U.S. suppliers, resulting in increased sales of DDGS to China. Buyers will be encouraged to make more purchases of U.S. DDGS in order to better understand the value of the U.S. DDGS in their feed milling and/or livestock operations. 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 .