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The U.S. Grains Council (USGC) invested $50,000 of Market Access Program (MAP) funds in two separate ethanol marketing programs for the Peruvian market in 2015. As a result of these efforts, buyers in Peru purchased $15 million of U.S. ethanol, for a return on investment (ROI) of $299 for every $1 of MAP funds invested.
The 12th Annual Agricultural Cooperators Conference in Siem Reap, Cambodia, resulted in more than 335,000 metric tons of distiller’s dried grains with solubles (DDGS) sales valued at approximately $82 million. Using Market Access Program (MAP) funds, the U.S. Grains Council (USGC) invested $70,000 into hosting this annual conference, generating an estimated return on investment (ROI) of $1,181 for every MAP $1 invested solely for DDGS sales.
The U.S. Grains Council’s (USGC’s) Taiwan office organized an eight-member U.S. grain production and quality study team to join the 2015 U.S.-Taiwan Goodwill Mission, which traveled to the United States in September 2015. The Council invested about $60,000 of Market Access Program (MAP) funds in organizing this team, and the Taiwanese Ministry of Foreign Affairs (MOFA) of Taiwan used about $75,000 for sponsoring 10 members for participating in this mission.
The U.S. Grains Council’s (USGC’s) use of Market Access Program (MAP) funds to promote the development of the Moroccan ruminant sector has led to a revolution in this sector. The Council invested $116,000 of MAP funding in 2015 in promoting the ruminant sector development, which resulted in sales of 200,000 metric tons of U.S. corn to the ruminant sector valued at $48 million, generating a return on investment (ROI) of $413 per $1 invested.
Using Market Access Funds (MAP), the Council has been educating Vietnamese feed grain importers and the feed industry in general about how to use Distillers Dried Grains with Solubles (DDGS) from the U.S. ethanol industry for the past 10 years. The effectiveness of the Council’s promotions programs were highlighted in 2014 as the Vietnamese industry took advantage of a market disruption when the number one import market for U.S.
Using Market Access Funds (MAP) funds in 2014, the Council was successful in defending U.S. exports of Distillers Dried Grains with Solubles (DDGS) exports to China in Calendar Year (CY) 2014. China is the number one export market for U.S. DDGS importing 4.4 million metric tons, valued at $1.3 billion in CY 2013. However due to a number of internal political reasons, the Chinese government used a variety of technical barriers in an attempt to shutdown U.S.
Using Market Access Program (MAP) funds, the Council sponsored a Saudi Arabian trade team to the Council’s biannual trade show, Export Exchange 2014. As a result of their participation in Export Exchange 2014 and post conference travel to Wisconsin and Illinois to visit grain producers and exporters, the Saudi team members purchased roughly 16,000 metric tons of U.S.
Using Market Access Program (MAP) funds, the Council’s marketing program in Saudi Arabia in Calendar Year (CY) 2014 resulted in Saudi Arabia imported 975 thousand metric tons (38.3 million bushels) of corn from the United States, valued at $176 million. This is an increase from CY 2013 when Saudi imported only 355 thousand metric tons (13.9 million bushels) of U.S. corn. The Council invested $85,000 of MAP funds in support of this marketing program generating a Return on Investment (ROI) of $2,000 per every $1 of MAP funding invested.
Using Market Access Program (MAP) funds, the Council partnered with CasaGrains, Morocco’s largest importer of U.S. Distillers Dried Grains with Solubles (DDGS), to sponsor a Moroccan trade team to travel within the United States, raising awareness of the use of DDGS in poultry feed rations. As a result of this DDGS buyer’s team, the Council saw an in increase in the use of U.S. DDGS in the Moroccan egg laying sector. Five Moroccan buyers who participated in the program imported a total of 95,000 tons of DDGS valued at $25.5 million in 2014.
U.S. market share of Egypt’s corn imports rebounded from almost nothing in 2013 to 36 percent of 8.5 million metric tons (228.3 million bushels) in Calendar Year (CY) 2014. U.S. sales totaled 3 million metric tons (118.1 million bushels) valued at $543 million. Using Market Access Program (MAP) funds, the Council invested $83,000 in trade promotion programming contributing to this rebound in exports, generating an estimated Return on Investment (ROI) of $6,542 for every MAP $1 invested.
Using Market Access Funds (MAP) and Foreign Market Development (FMD) funds, the Council began introducing U.S. sorghum to the Chinese market in 2013. As a result of the Council’s efforts, China has become the number one importer of U.S. sorghum, importing 6.3 million metric tons (169 million bushels) in Calendar Year 2014 valued at over $1.47 billion. China continues to be the number one destination for U.S. sorghum in 2015 (January to April) with imports of 3.6 million metric tons (141 million bushels) valued at $866 million.
Using Market Access Funds (MAP) funds in 2014, the Council promoted U.S. food barley to the Taiwanese food industry resulting in sales of 1,650 metric tons (76 thousand bushels) in Calendar Year (CY) 2014, valued of $412,500. The Council invested $35,000 of MAP funds in support of this program generating a Return on Investment (ROI) of $10.78 per every $1 of MAP funding invested.
Using Market Access Funds (MAP), the Council’s food barley promotion programs in Japan led to over 2,000 metric tons, valued at $1 million, of high beta-glucan barley exports from the U.S. to Japan in 2014. The Council invested $63,000 of MAP funds in 2014 to promote the US food barley to the Japanese food industry, as a result, exports sales of US food barley totaled $1 million generating a Return on Investment (ROI) of $14.87 per $1 of MAP funding invested.
Starting in November of 2013, the United States’ third largest corn importing customer, China began rejecting some shipments U.S. corn shipments due to the presence of an unapproved biotechnology trait, MIR 162. China had been considering approval of MIR 162 since 2010 and had been importing U.S. corn containing MIR 162 since 2011 without objection, however due to a large local corn crop, the Chinese government used MIR 162 as a technical barrier to trade and began blocking U.S. corn imports, effectively shutting down the U.S.’s third largest corn importing customer.
Meeting this week in Brazil, MAIZALL's officers were focused on the alliance's mission to Europe. Scheduled for June, the mission will include discussions with EU officials and feed industry leaders on market access and biotechnology issues.
Malaysian officials last week agreed to permanently exempt imports of U.S. distiller’s dried grains with solubles (DDGS) and corn gluten meal (CGM) from that nation’s new, more stringent sanitary and phytosanitary (SPS) and inspection regulations for agricultural commodities. The decision makes permanent a temporary exemption, granted in May, for the period from July 31 to Dec. 31, 2014.
U.S. distiller’s dried grains with solubles (DDGS) have gained popularity in markets around the world, with 9.7 million metric tons – valued at $2.9 billion – exported in 2013 to more than 45 countries. Behind this market expansion are Council-directed and implemented educational seminars and feeding trails, complimented by consistent end-user contact and support.
Exports of U.S. coarse grains and co-products to the Middle East and North Africa have rebounded dramatically this marketing year due to price, world market conditions and consistent trade servicing.
U.S. corn exports to Japan are enjoying a powerful rebound, projecting a strong return for the remainder of the 2013/2014 marketing year that began Sept. 1. Current USDA reports show outstanding sales and accumulated exports to Japan totaled 8.4 million metric tons (331 million bushels) for this marketing year through March 6.
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.
As of March 12, 2015, the Western Hemisphere claimed just shy of 18 million metric tons (708.6 million bushels) in outstanding sales and accumulated exports of U.S. corn for the 2014/2015 marketing year, 2.6 million tons (102 million bushels) more than last year at the same time.
With attendees including 210 international attendees representing 41countries and an additional 200 U.S. attendees representing every sector of the coarse grains value chain, Export Exchange 2014 was this year’s premiere global grain trade conference. Wrapping up on Oct. 22, the conference was a resounding success for both international buyers and U.S. suppliers.
The United States is on track to capture more than 95 percent of Colombia’s 3.6 million metric ton (141 million bushels) corn market this marketing year, which ends Aug. 31. This is a dramatic turn-around from 2013 exports of just 644,000 tons (25 million bushels) to that country.
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 U.S. Grains Council, in August 2011, successfully achieved the inclusion of distiller's dried grains with solubles (DDGS), corn gluten feed and other U.S. commodities on the Saudi Arabian import subsidy list. Inclusion on this import subsidy list is essential in eliciting interest from Saudi importers of these products. This effort paid off when a Saudi Arabian company, ARASCO, purchased a bulk shipment of U.S.
USGC’s Memorandum of Understanding (MOU) – effective Nov. 1, 2013 – with 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. Through participation in Council’s MAP and FMD-funded technical assistance and feeding trials, Gloria determined that their dairies could benefit tremendously from incorporating DDGS in rations and they began importing DDGS in 2012.
Korea is a mature, sophisticated and highly price sensitive market, and Korean buyers do not hesitate to source from the Black Sea region, South America and South Africa as well as the United States. Using MAP and FMD funds, the USGC sought to reestablish relationships and convince Korean buyers of the United States’ ability and commitment to meet their corn quality and volume needs. While Korean buyers and end-users often express a traditional preference for U.S. corn, price is decisive. Last year's drought-impacted crop and reduced export supplies significantly reduced the U.S.
U.S. sorghum exports to China are expected to reach more than 3 million tons in September-August 2013/14, approaching $1 million in value, compared to exports of 3,376 MT the previous year. Building demand for U.S. sorghum was attractive as sorghum is not subject to a tariff rate quota restriction in China, the way corn is. Starting in 2012, the USGC used MAP and FMD funds to assess potential demand.
Using MAP funds, the USGC has been educating the larger commercial feed companies and other large end-users in Algeria about the benefits of utilizing DDGS and CGF in livestock rations. The Council sees opportunities for these products fitting well into both the Algerian poultry and dairy industries. In 2013, Sarl Nutrimag, an Algerian commercial importer, made the first-ever purchase of U.S. DDGS and CGF into Algeria. In combination with technical assistance and training for end-users, this is an opening for additional purchases of U.S. corn products in the future.
Some local industry people, including professors and researchers, do not really understand the energy values of U.S. DDGS thus they tend to under-value the advantages of using DDGS. Some feed millers and livestock/poultry producers are using DDGS at low inclusion rates because of concerns regarding mycotoxins. Using MAP funding, the Council invited a technical consultant to Taiwan, organized a survey team to the U.S., conducted DDGS seminars and meetings, as well as published a DDGS technical bulletin for addressing above-mentioned questions and concerns.
Using MAP (Market Access Program) funds, the U.S. Grains Council partnered in 2011 with Gloria, the largest dairy processor in Peru to conduct feeding trials using Distiller Dried Grains with Solubles (DDGS) a co-product from the U.S. ethanol industry. Feeding 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 U.S. Grains Council and Gloria.
By using Market Access Program (MAP) funds, the Mexico office hosted 24 members of the Mexican livestock and feed grain importing industry to the US Grains Council Export Exchange 2012. The program took place in Minneapolis during October 2012. As a result of the event 4 participants confirmed purchases of 60,000 metric tons of feed ingredients valued at $18.3 million.
After a three and a half year effort, in September 2012 the U.S. Grains Council, in cooperation with USDA's Foreign Agricultural Service – Algeria, successfully influenced the removal of the value added tax (VAT) and custom tax on all feed imports in Algeria, including corn, distiller's dried grains with solubles (DDGS) and corn gluten feed (CGF). Previously, the VAT and custom tax for DDGS and CGF had been set at 17 percent and 30 percent respectively, resulting in no U.S. DDGS or CGF exports to Algeria. The VAT and custom tax for corn was previously set at 7 percent and 5 percent.
Using MAP (Market Access Program) funds, the U.S. Grains Council has been trying to re-introduce U.S. Distillers Dried Grains into the Ecuadorian market for the past two years. Ecuador has imported small quantities (400 metric tons) of DDGS in the past but has not been a consistent buyer. The last large commercial shipments took place in 2006 when 2,400 metric tons of DDGS was imported however the importing company had a bad experience with the product and did not import more.
Using MAP (Market Access Program) funds, the U.S. Grains Council hosted a group of senior purchasing executives from the largest feed companies in Colombia to attend the 2012 Export Exchange in Minneapolis, Minnesota. During the conference these executives were exposed to merchandisers of U.S. agricultural products. All of the participants noted that networking, information about U.S. grains, and bringing together buyers and sellers were the most relevant aspect of the conference. Concerns about the quality of U.S.
Using MAP (Market Access Program) funds, the U.S. Grains Council sponsored a buyer team from Colombia to the U.S. in June 2103. The participants in the buyer team were from the Colombian feed mill, Italco, which is one of the largest grain importers in Colombia.
The importing group met with U.S. corn and sorghum producers in Texas and visited with exporting companies in Texas and Louisiana.
Sales of U.S. barley and malting barley to Korea jumped significantly in 2012 thanks to implementation of the United States-Korea Free Trade Agreement (FTA) in March 2012 and to timely promotions of barley by the U.S. Grains Council, in cooperation with related organizations. The Council, in cooperation with WestBred, was instrumental to have a local barley polishing and wholesale company test polishing property, texture, taste and flavour of five U.S. food barley varieties. In partnership with McKay Seed Company Inc., the Council organized a seminar on U.S.
Since 2004, when Korea’s feed and animal industry was not aware of the availability and feeding value of U.S. corn-based ethanol DDGS, the Council has promoted its use in livestock and poultry diets.
The U.S. Grains Council's Distiller's dried grains with solubles (DDGS) promotion program in Japan has made significant strides using sector-specific marketing strategies to promote the feed ingredient across the Japanese livestock and feed industries.
The U.S. Grains Council use of Foreign Market Development (FMD) and Market Access Program (MAP) funds help expand exports of U.S. Distiller’s Dried Grains with Solubles (DDGS) to Egypt. In 2006, DDGS was registered as a feed ingredient in the Egyptian Official Feed Ingredient List. The Council later assisted Cairo 3A company (an ADM Agent) in importing the first shipment of 6,000 metric tons of DDGS to Egypt.
Due to efforts by the U.S. Grains Council (USGC) Egypt has become the largest export market for U.S. Corn Gluten Meal (CGM), accounting for almost 20 percent of total exports. In 1999, the Council introduced CGM to the Egyptian market where the product was registered on the Egyptian Feed Ingredients List. FAS provided funding needed to carry out demonstration trials with large local poultry companies. These trials proved the economic advantage of using CGM in broilers and layer rations, as it reduced feeding cost.
U.S. grain farmer checkoff investments in international market development, combined with USDA Foreign Market Development (FMD) and Market Access Program (MAP) funds, have helped grow U.S. distillers dried grains with soluble (DDGS) exports to South Korea by almost 500,000 metric tons. As a result of this promotion, U.S. DDGS has a bright future in this country.
The utilization of distiller’s dried grains with solubles (DDGS)—a co-product of U.S. ethanol production used as a feed ingredient for livestock—is gaining popularity in markets around the world. Market Access Program (MAP) and Foreign Market Development (FMD) funds support U.S. producers’ and agribusiness efforts in the development, maintenance and expansion of U.S. corn, barley, sorghum and related co-product exports through the U.S. Grains Council.
Over the past five years, Mexico’s imports of U.S. distiller’s dried grains with solubles (DDGS) have grown from 360,000 metric tons in 2006 to just over1.6 million tons in 2010. With the support of Market Access Program (MAP) and Foreign Market Development (FMD) funding, the U.S. Grains Council encouraged this upward trend by forming relationships with local end-users in Mexico.
Historically, distiller’s dried grains with solubles (DDGS) has been an unknown product throughout Jordan and the Middle East. Promotion of DDGS in the Middle East has two significant obstacles. Ethanol has been viewed with suspicion as a possible competitor to Middle Eastern oil and DDGS seen as an offshoot of the forbidden alcohol trade. However, two years of marketing efforts by U.S. grain farmers, bolstered by Market Access Program (MAP) and Foreign Market Development (FMD) program funds, have raised the positive profile of U.S. DDGS in the region.
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.
Based on written feedback from those in attendance, the Southeast Asia Grain Transportation Conference in Singapore in late April resulted in more than $166 million in U.S. agriculture product sales. Purchases were made by companies in Thailand, Hong Kong, Vietnam, Singapore and Philippines.
The conference was organized jointly by the U.S. Grains Council and U.S. Soybean Export Council and was made possible through Foreign Market Development (FMD) and Market Access Program (MAP) funding.
Egyptian purchases of U.S. distiller’s dried grains with solubles (DDGS) reached 21,879 metric tons in the first quarter of calendar year 2011 – a major increase over the 12,348 tons imported at this time a year ago – and Dr. Hussein Soliman, U.S. Grains Council director in Egypt, believes imports could reach 350,000 metric tons by 2020.
This belief reflects the Council’s success on several fronts, from introducing DDGS use to multiple animal sectors to encouraging more U.S. grain and co-products suppliers to offer DDGS to their Egyptian customers.
In a few short months, Spain has moved from importing no U.S. sorghum to becoming the second largest market for U.S. sorghum, thanks in large part to U.S. Grains Council efforts supported by Market Access Program Funding.
Duane Toews and Mike Dwyer, Chief Economist @usgc talk #ethanol production. #KsAg #FarmFactor