News & Events
Attending the 2015 APPAMEX North American Export Grain Association (NAEGA) Forum last week in Puerto Vallarta, Mexico, U.S. Grains Council (USGC) representatives were peppered with questions about China, sorghum and the likely implications for Mexican buyers, showing strong interest the commodity despite China’s recent buying surge and its effect on world prices.
Attending the event on behalf of the Council were Julio Hernandez, USGC director in Mexico; Mike Dwyer, USGC chief economist; and Alvaro Cordero, USGC manager of global trade.
“Mexican end-users are intrigued by how China now controls the sorghum market, and they wonder what to expect in the next few months,” Hernandez said.
Last week, the U.S. Grains Council (USGC), the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture’s (USDA’s) Foreign Ag Service (FAS) teamed up to lead a mission of U.S. ethanol industry representatives to Mexico to explore potential in that market. One mission member, Greg Krissek, CEO of Kansas Corn, reflected on his recent mission in this video.
By: Ashley Kongs, U.S. Grains Council Manager of Ethanol Export Programs
This week, the U.S. Grains Council (USGC) and its partners, the Renewable Fuels Association (RFA), Growth Energy and U.S. Department of Agriculture's (USDA's) Foreign Agriculture Service (FAS), are conducting a mission to Mexico to explore the potential ethanol market in that country. This comes on the heels of Pemex’s announcement earlier this year that it would invest 880 million pesos ($58 million USD) in infrastructure upgrades to handle and blend ethanol into gasoline in Mexico. Pemex holds a monopoly on Mexico’s gasoline market.
Last year, the U.S. Grains Council (USGC) launched a new initiative in Southern Mexico and completed a distiller’s dried grains with solubles (DDGS) feeding trial that determined there is a large potential demand for U.S. DDGS in cattle feed rations in the region, previously was an underserved market. Today, the Council is expanding that trial to include another ruminant animal, sheep.
This week’s U.S. Grains Council’s (USGC) Chart of Note illustrates how exports of U.S. distiller’s dried grains with solubles (DDGS) have shifted from China to other countries in recent months.
Its proximity to the United States and ability to receive grain by truck, rail and vessel has helped Mexico be a top customer for U.S. sorghum for years. In the 2013/2014 marketing year, Mexico was the third largest market of U.S. sorghum and the United States, especially Texas, continues to be the best option to meet the country’s sorghum demand.
“Mexican buyers appreciate the quality and reliability of U.S. sorghum,” said Javier Chavez, U.S. Grains Council marketing specialist in Mexico. “And U.S. producers haven’t forgotten their southern market.”
Grain buyers and end-users participating in four trade teams from Latin America will be among the 180 international participants at Export Exchange 2014, scheduled for Oct. 20 to 22 in Seattle, Washington.
Exports of both U.S. corn and U.S. sorghum finished the 2013/2014 market year strong, with increases of more than 150 percent and 200 percent over the same time period last year, respectively.
The United States recorded its highest ever monthly exports of distiller’s dried grain with solubles (DDGS) in July, bringing the total U.S. DDGS exported this marketing year to 7.2 million metric tons, a 48 percent increase over the same time period last year.
Behind this market expansion are U.S. Grains Council educational seminars and feeding trials, complimented by consistent end-user contact and support. In emerging markets around the world, the Council continues to work to expand the market for U.S. DDGS.
By: Javier Chavez, U.S. Grains Council Marketing Specialist in Mexico
Latin America’s primary use of barley is in the brewing sector, either as malt or malting barley. To strengthen this growing sector’s ties with U.S. barley producers and malt exporters, the U.S. Grains Council recently escorted two teams from Latin America and Mexico to key U.S. barley growing areas including Colorado, Montana and North Dakota.