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Global Update December 18, 2008
Kenya Passes Bio-Safety Bill Aided by USGC Efforts. U.S. producers of genetically enhanced corn may soon see their products in the Kenyan market as Kenya recently passed a bio-safety bill permitting importation and cultivation of biotech crops and products. The bill, which is expected to be signed by Kenya's President Mwai Kibaki before Jan. 1, 2009, follows years of U.S. Grains Council programming aimed at promoting biotechnology in the region. According to Kurt Shultz, USGC director in the Mediterranean and Africa, the Council's work in the region continues to be felt today, as evidenced by the new bill. "The passage of this bill is a direct result of past Council efforts in the region. It also shows that pro-biotech forces in Africa have won a significant battle in the biotechnology debate," he said. During its time in operation, the Council's Southern Africa Biotechnology Test Plot Program had more than 600 small scale South African farmers and 94 extension agents participate in field days at one of the Council's ten demonstration sites.
The program also attracted the attention of several prominent visitors. According to Shultz, in May 2006, a high-level delegation from Kenya, Malawi and South Africa consisting of Members of Parliament from each country, visited Council-sponsored biotechnology test plots in South Africa. "The timing was significant in that Kenya and Malawi were debating bills to adopt the commercial cultivation of biotechnology," he said. "The positive impact and practical benefits the Members of Parliament saw at the USGC-sponsored test plots convinced them that Kenyan and Malawian farmers could benefit immensely from the technology if its products were made available to them. As a result, the Members of Parliament resolved to fast-track the introduction of the technology into their respective countries." With the passage of the Bio-Safety Bill into law, Kenyan farmers will be able to use cultivated seeds to increase agricultural production and productivity. The law will also provide opportunities for Kenya to import genetically enhanced products such as corn to address food security concerns, a USDA Foreign Agricultural Service GAIN report stated. "Our activities in Africa are a good example of how Council programs on biotechnology can pay off in the long run," said Rebecca Fecitt, USGC director of biotechnology programs. "With an issue like biotechnology, we sometimes don't see the returns until a few years down the road, but the results can be far-reaching. I'm very pleased to see that things worked out so well in Kenya, a country that has emerged as a leader in biotechnology in east Africa."
Give Back in Guatemala. The GRAINS Foundation seeks help from U.S. Grains Council members to enhance the wellbeing of school children in Guatemala. The Foundation seeks cash donations that will be presented to an Indian school in Guatemala during the Council's 6th International Marketing Conference & 49th Annual Membership Meeting Feb. 7-11, 2009, in Guatemala City, Guatemala. The money raised will be used to provide elementary school children with meat, milk and eggs for their school lunches. Now is your chance to give back! Other tangible donations will also be accepted. Please contact Hillary Bennett, USGC executive assistant, at 202-789-0798, or
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for more information.
U.S. Corn Market Share in Korea Largest in 10 Years. The United States enjoys its largest market share percentage in ten years in Korea's corn import market, said U.S. Grains Council Director in Seoul, Byong Ryol Min. Min reports that Korea has imported 8.8 million metric tons of feed grains and substitutes during the period of January through October, representing a 2.7 percent increase over the 8.6 million tons imported during the same period last year. "The United States enjoyed 83.2 percent of the nation's total feed grains and substitutes import market, the highest since 1984 and a drastic increase compared with 39 percent reported during the past three years," he said. Of the total feed grains and substitutes imported, 87.8 percent or 7.8 million tons (307 million bushels) was corn. "The U.S. market share in Korea's corn import market was recorded at 94.4 percent, the highest in 10 years and a significant increase compared to the 48 percent it held the past three years," Min said. According to Mike Callahan, USGC senior director of international operations for Asia, there are two major factors involved in the United States' current market share jump in Korea. "One reason behind this year's success is the fact that we've been able to regain a lot of lost share from over the past years, especially from during the time when China was exporting corn. Secondly, the Council has continued to provide trade and technical services to Korea through thick and thin, even when U.S. market share in Korea was depressed." Callahan said many new, younger faces have entered Korea's feed industry throughout the years and the Council has been working closely with them, educating feed representatives about the quality and supply of U.S. corn and the reliability of U.S. producers in their abilities to meet Korea's feed needs. "Because of these continuing customer services, Korean buyers have been kept well informed about U.S. supplies and were able to quickly resume imports of U.S. corn when local market conditions warranted a change in their supply-chain," he said.
Japan's U.S. Barley Imports Stay Strong Despite Setbacks. Japan postponed its Simultaneous Buy and Sell (SBS) tender program Oct. 1 due to a forced revision of contracts between Japan's Ministry of Agriculture Forestry and Fisheries (MAFF) and importing countries. September's illegal use of tainted rice sold in China's food sector triggered Japan's MAFF to outline consequences if grain tendered through SBS revealed to be tainted with fungi, mycotoxins and pesticide residues, according to U.S. Grains Council Country Director in Japan Dr. Tetsuo Hamamoto. In 1999 Japan introduced the SBS tender system for barley and wheat and it is currently used for all imported U.S. feed barley. Until this past summer Japan's MAFF held six tenders annually; now Japan holds one SBS tender per month. Grain price fluctuations throughout each month, however, led Japan's barley feed buyers to miss opportune times to purchase U.S. grains. MAFF agreed to hold additional tender sessions throughout each month at the request of barley importers. "Japan's feed buyers have been able to better manage their risk by these more regular tender sessions," said Hamamoto. "It also creates an increase of U.S. barley exports to Japan." This new development in the SBS system has encouraged Japan barley importers to buy more U.S. feed barley more frequently. The Japan Feed Manufacturers Association, for example, purchased 36,000 metric tons (1.7 million bushels) of feed barley mid-August, and 25,500 tons (1.2 million bushels) in early September. "The U.S. market share for Japan imported feed barley has increased to 44 percent in 2008," said Hamamoto adding that the United States falls second to Australia as the largest supplier of feed barley. "Although it is not a significant increase from the previous years, the Council will continue promotional activities that will result in Japan purchasing more U.S. barley."
Education Improves Lives, Expands Demand for U.S. Grains. Swine management practices in China are substantially outdated compared to those in the United States, according to Jason Yan, U.S. Grains Council technical director in China. Working directly with Chinese swine producers on implementing modern practices will result in increased production capabilities and lower food costs for China's growing population. "The Council has been active in promoting practical swine production herd health management practices in China's hog industry and we are seeing interest in our educational programs increase," said Yan who conducted training courses and farm consultations Dec. 7-18 to top swine operations in China, along with Dr. Steve Pohl, a professor at South Dakota State University. "As we continue to attract additional interest from swine producers, we will see an increase in the amount of affordable pork products available for human consumption. This also translates into expanded demand for feed grains. Our intent is to put U.S. farmers in the front of the line when China's feed demand exceeds production." Yan said the farms visited are currently in the process of designing and/or building new additions to existing facilities. "This is a great time for the Council to intervene. Assisting these operations in incorporating sound management practices now will prevent problems in the future," he said. "We provided technical expertise on ventilation and waste management that will lower mortality and increase productivity performance." The bottom-line is to create a win-win for China's livestock sector and create opportunities for U.S. farmers, Yan said. "More pigs and successful expansion will lead to more feed grain utilization."
USGC Confronts DDGS Quality and Storage Issues in Southeast Asia. Misconceptions related to the quality of U.S. corn and distiller's dried grains with solubles (DDGS), a co-product of U.S. ethanol production, are often a result of outdated storage management practices that can compromise the quality of the feed ingredients over time if the product is not stored properly. The U.S. Grains Council is committed to identifying trade barriers that negatively impact the quantity of U.S. feed grains and co-products penetrating the international marketplace. When a challenge is identified, the Council orchestrates a comprehensive plan to minimize and hopefully eliminate the issue, according to Adel Yusupov, USGC director in Southeast Asia. The Council conducted feed milling industry development seminars in Vietnam and the Philippines earlier this month where roughly 160 attendees were equipped to beef up their storage practices. "Adoption of the latest grain storage management systems resulting from education on proper corn storage methods in tropical climate conditions will help local feed millers implement better corn and DDGS storage practices," said Budi Tangendjaja, USGC technical consultant in Southeast Asia. "Ultimately, this will result in improved perceptions of the quality of U.S. corn and co-products. It will also result in the ability to purchase more feed grain and co-products from the United States without concerns regarding quality." Tangendjaja said better warehouse management and control methods would improve feed mill profitability by reducing the cost of storage while maintaining the quality of feed ingredients such as DDGS. The educational mission included Council members Larry Prager of SCAFCO Grain Systems and Dan Hammes of Quality Technology International, and Michael Montross, a University of Kentucky professor. The group gave eight presentations related to grains storage management, silo design and management, DDGS quality and mycotoxins.
Vilsack to Head USDA. President-elect Barack Obama selected former Gov. Tom Vilsack of Iowa to oversee the United States Department of Agriculture. The decision was made formal at a press conference in Chicago, Ill., Dec. 17, 2008. U.S. Grains Council President and CEO Ken Hobbie said Vilsack has a firsthand perspective of American agriculture, haling from a state where agriculture is the "corner stone" of the economy. "This honor bestowed upon Mr. Vilsack as the 30th Secretary marks an important occurrence in the history of our industry," said Hobbie. "The members and leadership of the U.S. Grains Council have been dedicated to working cooperatively with the USDA, especially with the Foreign Agricultural Service, for nearly 50 years, and we look forward to continuing this invaluable relationship during the new administration for the good of U.S. barley, corn and sorghum growers, agribusinesses and the entire agricultural community." Agriculture is facing many challenges in light of the current economic situation, but Hobbie said working together will minimize the burdens placed on the industry. "Despite these challenges, U.S. agriculture is famous for uniting together and focusing on strengthening the future," he said. "2008 proved free and open trade is paramount to the U.S. economy, and we are confident Mr. Vilsack will consider a liberalized trade environment a top priority. In order to stimulate global economic growth and to feed a growing world, we urge the approval of pending free trade agreements to be considered by the new administration as soon as possible."
COUNCIL NEWS
Export Strategy Planning Underway in Vietnam and Turkey. The U.S. Grains Council's overseas operations department is currently conducting Unified Export Strategy (UES) consultations in Ho Chi Minh City, Vietnam for Asia programs and in Izmir, Turkey for Rest of the World (ROW) programs. Council headquarters staff are meeting with USGC overseas directors and consultants to discuss market assessments, country program reports and constraints. Mike Callahan, USGC senior director of international operations for Asia, Charles Ring from Texas Corn Producers Board and Asia Advisory Team leader and Kim Karst, USGC manager of international operations for Asia, are participating in meetings in Vietnam. "We are here to exchange ideas with the overseas directors on how to ensure the best return on investment for our stakeholders and to strategize how to increase exports to this part of the world," Ring said of the meetings. Chris Corry, USGC senior director of international operations for ROW, Tommy Young of Arkansas Grain and Sorghum Board and ROW Advisory Team leader and Gina Tumbarello, USGC manager of international operations for ROW, are conducting consultations in Turkey. "The passion of the overseas directors formulating their future program plans is incredible," Young said of the meetings. "Each director displays a truly personal sense of care for each program. Work is ongoing all the time; I do not believe they sleep."
Carrow Named New Manager of Communications. Marri Carrow has been named the U.S. Grains Council's new manager of communications. Carrow has experience working as a communications assistant for the Minnesota Corn Growers Association and received a bachelor's degree in English literature from Southwest Minnesota State University. During her position as communications and membership coordinator at the Council, she coordinated the update of the USGC Web site and contributed to Global Update articles. She will begin her new career on Jan. 6. Please join us in welcoming her to her new position.
Call for Board, Officer Applications. The U.S. Grains Council's Nominating Committee is currently accepting nominations for seats on the Board of Directors and the board officer position of secretary. The Nominating Committee will consider all applications received by March 31 and will announce the slate of candidates by May 1. The election will be held at the Council's Board of Delegates meeting in San Diego, Calif., July 21. Two of the four at-large director terms expire this year. These positions can be filled by any member of the current Board of Delegates. The secretary position is the starting point of the Council's officer rotation. The person elected secretary will begin a five-year experience as an officer, moving each year through the positions of secretary, treasurer, vice chairman, chairman and immediate past chairman. Candidates must be current members of the Board of Delegates who previously served on the Board of Directors, executive committee or as an A-Team leader for at least two years. The Nominating Committee will select up to four candidates for the board seats and as many as two individuals for the secretary position. The candidates will then be voted on by the full Board of Delegates in a weighted vote based on each member's total contributions to the Council. For more information, contact Shannon Schaffer, USGC director of membership, at (202) 326-0607 or email
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.
Holiday Office Hours. The U.S. Grains Council's headquarters office will be closed for the Christmas and New Year holidays. The office will be closed Dec. 25-26 and will resume normal business hours Dec. 29. The headquarters office will also be closed Jan. 1-2 and will resume normal business hours Jan. 5. The next issue of Global Update will be published Jan. 9. The U.S. Grains Council staff would like to wish all our members and supporters a wonderful holiday season and a happy new year!
USGC Recognizes Employee of the Quarter, Year. The U.S. Grains Council recently named Brenda Perkins, USGC receptionist, as the "Employee of the Quarter" and Kim Karst, USGC manager of international operations for Asia, as the "Employee of the Year." Perkins has worked for the Council since 2005. Her dedication to promoting a light and friendly atmosphere and for organizing activities for the staff to enjoy has not gone unrecognized. Karst (pictured left with Ken Hobbie, U.S. Grains Council president and (CEO) began working for the Council in 2005. Her constant attention to detail and commitment to seeing projects through, as well as her ideas toward increasing efficiency, are commendable. Please join us in congratulating both staff members for their excellent work performance.
Register for the Council's Upcoming Guatemala Meeting. Registration for the 6th International Marketing Conference & 49th Annual Membership Meeting in Guatemala City, Guatemala is now available on the U.S. Grains Council's Web site, www.grains.org. A brochure to register for the conference, make hotel reservations and arrange airport transportation can be printed out and faxed to Marri Carrow, membership and communications coordinator, at 202-326-0670 or e-mailed to
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. You can also fill out a registration form online by clicking on the "News and Events" tab followed by clicking on the "Upcoming Meetings" tab on the left hand side of the page. Registration for the conference ends Dec. 30. Contact the Council's membership staff at 202-789-0789 with any questions.
Join a USGC Tour and Explore Guatemala. Guests and spouses attending the U.S. Grains Council's 6th International Marketing Conference and 49th Annual Membership Meeting in Guatemala City, Guatemala can see more of the country by participating in a Council-organized tour. With the registration deadline for the meeting quickly approaching, don't forget to sign up for some of the optional tours available for guests and spouses. There are several opportunities to see more of Guatemala for those not directly involved with the meetings, including a tour of Guatemala City; a trip to Antigua, Guatemala's historic first capitol city; and a visit to a local school where tour participants can lend a helping hand to children in need. Guests and spouses can also sign up to attend the agricultural field trips planned for the meeting. See the registration brochure for more information, or contact Shannon Schaffer, USGC director of membership, at (202) 326-0607 or email
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.
NEW ON THE WEB
The U.S. Grains Council 2008 Annual Report Now Online. The Council's 2008 annual report is now available on the Council's Web site, www.grains.org, under the "About the Council" tab. The report contains a letter from the USGC chairman and president and CEO; updates from its overseas offices on U.S. exports of corn barley and sorghum; success stories of the Council's programs; current production, utilization and top customers for U.S. corn, barley and sorghum around the globe; a list of its current members; and headquarters office and international staff information and locations. The actual report was printed on bier papier made from hops, malt, yeast and the remains of beer labels. It is also printed with soy ink. The annual report will be arriving in the mail to Council members soon.
Biotech Regulatory Resources Now on the Council's Web site. The U.S. Grains Council has recently added new features to its Web site's biotechnology page found at www.grains.org. By clicking on the "Biotech Resources" tab you can find the most current news events on biotechnology around the world; food safety and nutrition information; Foreign Agricultural Service Attaché Reports; and regulatory issues and regulations. Learn more about biotechnology and its role in U.S. agriculture in the "Education Center." Contact Rebecca Fecitt, USGC director of biotechnology programs, at
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, for more information.
Monthly Management Reports (MMRs) Posted in The GRAIN Center. The November Monthly Management Reports from the Council's Asia offices are now available in The GRAIN Center, the members only section of the Council's Web site, www.grains.org. Prepared by the Council's international offices, these reports include information on market developments as well as Council programs and activities. For more information on MMRs, contact Kelly Crist, international operations coordinator for Asia, at
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In-depth Reports from USGC International Directors. A comprehensive series of updates from USGC overseas directors regarding the impact of the recent financial turmoil and price volatility on world grain markets has been posted to The GRAIN Center, the members only section of the Council's Web site, www.grains.org. This information provides a detailed view at the happenings around the world from those who know. To access the reports, log into The GRAIN Center and click on the "Export Markets" link. The reports are in the "Market Profiles and Market Briefings" section. The files can also be accessed by clicking the "Market Profiles" link in the "What's New" section on the left sidebard. In coming months, the Council's international staff will monitor international developments closely. Watch for updates.
COUNCIL ACTIVITY CALENDAR
January 7-8: The U.S. Grains Council's Board of Directors (BOD) meeting will be held in St. Louis, Mo. to review and update the FY 2009 budget and financial report. The Board will review the 2009 calendar for upcoming BOD meetings and other Board activities. The Board will approve new members since the last meeting and review recent successes of the Council's efforts. The Board will also tour Council member Monsanto's research and crop analytics facilities. For more information, contact Hillary Bennett, USGC executive assistant, at
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January 7-9: The U.S. Grains Council will participate in Council member Minnesota Corn Growers Association's MN Ag EXPO in Redwood Falls, Minn. The MN Ag EXPO provides participants the opportunity to learn more about the happenings in agriculture today with quality speakers and break-out sessions. The EXPO also serves as the Minnesota Corn Growers Association and the Minnesota Corn Research and Promotion Council's joint annual meeting. USGC Senior Director of International Operations for Asia Mike Callahan and USGC Communications and Membership Coordinator Marri Carrow will attend. Callahan will present during the annual meeting to provide interested parties a chance to learn more about the Council and to discuss opportunities for involvement in Council activities. For more information, contact Carrow at
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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. |