News & Events
By Kurt Shultz, U.S. Grains Council Regional Director for the Americas
Gloria, the largest dairy processor in Peru, recently imported another 7000 metric tons of U.S. distiller's dried grains with solubles (DDGS). Gloria's purchases are an outgrowth of DDGS feeding trials conducted jointly in 2011 with the U.S. Grains Council. The trials were conducted on three commercial dairy farms and the results were publicized to the Peruvian dairy industry through a series of workshops and publications co-hosted by the Council and Gloria.
By Kurt Shultz, U.S. Grains Council Regional Director for the Americas
A delegation sponsored by the Texas Department of Agriculture traveled to Colombia and Peru at the end of January to meet with importers to explore opportunities to export U.S. sorghum. The program complements ongoing U.S. Grains Council programs promoting sorghum from the United States in both of these countries.
Peru’s San Fernando poultry company bought 5,000 metric tons of U.S. distiller’s dried grains with solubles (DDGS), valued at $1 million, the first Peruvian DDGS purchase since 2007. San Fernando is Peru’s largest poultry producer, importing more than 600,000 tons (23.6 million bushels) of corn and soybean products, 43 percent of which came from the United States last year.
The Peruvian government recently removed a technical barrier to imports of distiller’s dried grains with solubles (DDGS), clearing the way for imports to occur. However, Peruvian importers are wary about how to manage importing DDGS and how to proceed in marketing the product to local livestock producers.
Leaders of the U.S. Grains Council (USGC) and the U.S. Soybean Export Council (USSEC) called for the continuation of strong partnerships built under the framework of the North American Free Trade Agreement (NAFTA) and other Western Hemisphere free trade agreements while at a joint regional buyers conference this month in Mexico.
Industry experts and end-users shared technical knowledge and practical experience using U.S. corn, distiller’s dried grains with solubles (DDGS) and sorghum during a Regional Nutrition Conference conducted earlier this month in Peru.
“The U.S.-Peru Trade Promotion Agreement has served to generate a continuing, symbiotic trade relationship between the United States and Peru that shows no signs of diminishing.”
Peruvian livestock may soon feast on U.S. sorghum, thanks to work last week by the U.S. Grains Council (USGC) to detail the economic and nutrition advantages of the crop during a conference in Lima.
The U.S. Grains Council (USGC), in partnership with the U.S. Department of Agriculture's (USDA's) Foreign Agricultural Service (FAS) office in Lima, hosted technical workshops in Peru last week, focused on the nutritional value of U.S. sorghum and distiller's dried grains with solubles (DDGS), U.S. contracting procedures and purchasing specifications.
Following the release of the Outlook Colombia 2030 report showcasing the significant opportunity for U.S. grain exports to Colombia in the coming decades, U.S. Grains Council (USGC) staff traveled throughout Colombia and Peru to examine the potential demand and determine the best paths forward to develop these two markets.
Colombia’s feed imports are likely to continue to expand significantly faster than historical trends have suggested, according to a new U.S. Grains Council (USGC) report on market development opportunities in there.
The findings in the report, known as Outlook Colombia 2030, were released this week to the country's top feed, poultry and livestock industry executives in conjunction with a USGC mission examining growth opportunities for U.S. coarse grains and co-products to Colombia and Peru.
Other key conclusions of the report included:
This week’s U.S. Grains Council’s (USGC’s) Chart of Note illustrates Peru’s continued interest in purchasing U.S. corn, with its entire duty-free quota filled this year on March 26.
This quota was negotiated under the U.S.-Peru trade promotion agreement (PTPA), which has been instrumental in boosting bilateral trade in food and agricultural products since it went into force on Feb. 1, 2009.
The U.S. Grains Council (USGC) presented the findings of its 2014/2015 Corn Export Cargo Quality Report to eager audiences in Colombia and Peru this week. These two countries both have such a large demand for U.S. corn that Peru filled their 2015 TRQ in just one week’s, and Colombia has filled 90 percent of its TRQ in just five months. Despite this, both countries' interest in purchasing U.S. corn has remained strong.
The U.S.-Peru trade promotion agreement (PTPA) has been instrumental in boosting bilateral trade in food and agricultural products since it went into force on Feb. 1, 2009, including spurring new sales of U.S. commodity corn, according to a U.S. Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report released April 8.
Peru has started the year with surging U.S. sales, filling its import quota for U.S. corn of 709,260 metric tons (27.9 million bushels) in the first seven days of the year. In the 2013/2014 marketing year, Peru finished as the eighth-largest U.S. corn export destination, setting an historic record of more than 1.2 million tons (47 million bushels) imported. And, if the anticipated accumulated exports to Peru are realized, within the first 5 months of the 2014/2015 marketing year, it will have already exceeded the total imports of the 2013/2014 marketing year.
By: Cesar Diaz, U.S. Grains Council Marketing Specialist for the Americas
After several years of lagging behind competitors from South America – for reasons ranging from quality concerns to high prices to a lack of ratified free trade agreements – grain exports from the United States to the Western Hemisphere are rebounding dramatically. So far this marketing year (Sept. 1 through April 17), U.S. corn exports have totaled more than 12 million metric tons (472 million bushels) versus 4 million tons (157 million bushels) over the same period last year.
By: Kurt Shultz, U.S. Grains Council Regional Director of the Americas
After two years of no U.S. corn exports to Peru, the competitively priced 2013 U.S. corn crop is expected to turn this around. The U.S.-Peru Free Trade Agreement (FTA), which was implemented in 2006, creates conditions where Peruvians will aggressively purchase U.S. corn in January and February of this year.
This week's U.S. Grains Council Chart of the Week shows the change the change in imports of U.S. corn from 2012 to 2013 in 14 Latin American countries. According to the USDA, the Western Hemisphere's accumulated U.S. corn imports are more than 1.7 million metric tons (67 million bushels) ahead of last year at this same time. Mexico, the second-largest U.S. corn market, is the largest contributor to this market change, importing 1 million tons (39.4 million bushels) more than last year.
A new Memorandum of Understanding (MOU) – effective Nov. 1, 2013 – between the U.S. Grains Council and Gloria, the largest and most progressive milk processor in Peru, will help Gloria overcome the major logistical bottleneck to expanding U.S. distiller's dried grains with solubles (DDGS) use in Peru's dairy industry.
By: Kurt Shultz, U.S. Grains Council regional director for the Americas
With a record corn crop filling the silos this fall, the U.S. Grains Council has been busy bringing foreign buyers to the United States to show them the crop in an effort to encourage overseas customers to shift purchasing patterns back to the United States. In the latest of many foreign delegations visiting the United States this fall, the Council this week hosted nine buyers from Colombia, Venezuela, Peru, Ecuador and Panama, in South Dakota, Missouri and Louisiana.
By: Kurt Shultz, U.S. Grains Council director of the Americas
By Tina Holst, University of Wisconsin – Platteville and Clint Vance, Ohio State University
Unfortunately, the time has come to say our goodbyes. This morning several of us got up early to enjoy the sunrise from Copacabana beach in front of our hotel. What a blessing this trip has been for all of us to have had this great opportunity and experience!
By Hope Wentzel, Virginia Tech and Ethan Giebel, University of Wisconson – Platteville
Between a wonderful breakfast and sunrise on the beach, our morning got off to a fantastic start. Apart from a few runners and pigeons, we had the beach to ourselves at 6 a.m. this morning so we could enjoy the quiet that is uncommon in this "city of wonders," Rio de Janeiro!
Brazil is committed to growth, and there is every reason to believe it will move aggressively to address the logistical issues that hinder exports -- an example that the United States, with its own infrastructure deficits, might well take to heart.
The South American giant's growing pains are well known. According to a U.S. Grains Council consultant, Brazil will harvest a record corn and soybean crop this spring. About 38.5 million metric tons of beans will be exported. Rain delays, however, have slowed both the harvest and the movement to port, as well as loading.
As harvest begins in South America, the world anxiously watches. Many end users are anticipating large Argentine and Brazilian crops following one of the worst droughts in recent memory in the United States. However, the dynamic of determining what Argentine farmers plant isn't as cut and dried as it is in America.
According to DTN's South America correspondent, Alastair Stewart, the margins and return on investment would seem to provide a strong incentive to increase corn plantings, but Argentine farmers chose to ignore these data and increase soybean acres instead.
By Kurt Shultz, U.S. Grains Council Regional Director for the Americas
Keynoting the 2012 Feed Latina Congress in Punta del Este, Uruguay, U.S. Grains Council Vice Chairman Julius Schaaf emphasized that competition does not preclude cooperation on common priorities. For U.S. and South American feed grains producers, such issues include market access, greater understanding and acceptance of food security through trade, and increased international acceptance of biotechnology.
This week's U.S. Grains Council Chart of the Week shows the coarse grains supply and demand for Argentina. With tight U.S. corn supplies, many global importers are looking to South America to produce a good crop to help bridge the gap and keep prices in check.
By Kurt Shultz, USGC Regional Director in Latin America and the Caribbean
In 2011, South America imported 200,000 metric tons of U.S. distiller's dried grains with solubles (DDGS), with Chile and Colombia topping the list as lead importers. However, other countries in the region are also taking notice of the nutritional and cost advantages of the feed ingredient.
U.S. Grains Council officers recently completed the two-week 2012 Officer Mission through Argentina and Brazil to see the production outlook and current infrastructure conditions. Most of the team members had never been to either country before, according to USGC Chairman Wendell Shauman, who said the mission was very informative and valuable.
An elite U.S. Grains Council delegation was the first group to meet with key officials in Panama and Colombia since U.S. passage of the Colombia and Panama free trade agreements (FTA).
USGC Chairman Wendell Shauman, National Corn Growers Association Chairman Bart Schott, were accompanied by Council staff, Floyd Gaibler, director of trade policy, Chris Corry, director of international operations, and Kirk Shultz, regional director in Latin America.
A second shipment of U.S. distiller’s dried grains with solubles (DDGS) is scheduled to arrive in Peru in early July. According to the U.S. Grains Council, reports indicate the shipment is approximately 6,000 metric tons, bringing Peru’s total imports of U.S. DDGS to 11,000 metric tons in the last six months. Since 2007, no U.S. DDGS was imported in Peru due to a misclassification of DDGS by Peruvian import authorities. This issue has since been resolved through a joint effort by the Council and the U.S. agricultural attaché.
Upon completion of a recent U.S. Grains Council market assessment in Chile, staff and consultants concluded that Chile could easily import up to one million metric tons of U.S. corn products including distiller’s dried grains with solubles (DDGS) and corn gluten meal annually, despite a slow decline in current import levels.
In 2010, Chile imported roughly 140,000 metric tons of U.S. corn gluten meal and DDGS, down from its record high of 200,000 tons in 2008.
U.S. farmer checkoff funds, combined with Market Access Program (MAP) and Foreign Market Development (FMD) funds, spent in Indonesia generated a return of 1,750 percent and resulted in more than $52.5 million in new U.S. grain purchases in fiscal year 2011.
The U.S. Grains Council’s distiller’s dried grains with solubles (DDGS) Promotion Seminar in Lima, Peru attracted more than 80 representatives of the fast-growing Peruvian poultry sector.
“Participants are very excited about getting access to U.S. DDGS,” said Kurt Shultz, USGC regional director for Latin America and the Caribbean. “During our time there, two groups indicated they are considering importing additional DDGS before June.”
For the first time since 2007, Peru has resumed importing distiller’s dried grains with solubles (DDGS), the U.S. Grains Council reports. A shipment of 5,000 tons at an FOB value of $1 million arrived during the first week of January, breaking a dry spell of imports due to a misclassification of the product by the Peruvian government four years ago.
Due to negotiations between the Peruvian government and the U.S. agricultural attaché in Peru, the issue was only resolved last year.
In a three year battle between the Argentine government and farmers, Argentine farmers announced Monday a one-week suspension to grain sales.
“The halt to sales is not expected to significantly impact corn exports since the bulk of the 2010 crop has already been exported, rather this is focused primarily on wheat exports,” said Kurt Shultz, U.S. Grains Council regional director in Latin American and the Caribbean Region.
A delegation from a corn-milling company, Maciera Dominican, traveled to the United States this week to explore the status of the 2010 U.S. corn crop. Maciera Dominican typically purchases 70,000 metric tons (2.8 million bushels) of U.S. hard endosperm yellow corn for its corn milling operations. It was forced to switch to South American origin due to difficulties procuring hard endosperm corn out of the United States.