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USGC Tackles Obstacles Limiting U.S. Export Growth
27.05.2010 09:58 "Agro Perspectiva" (Kyiv) —
U.S. agricultural exports are projected up 3 percent for the 2010/2011 marketing year with larger supplies and lower prices, according to USDA’s May 11 World Agricultural Supply and Demand Estimates report. Despite these projections, increasing overseas feed grain supplies, mostly corn, could limit export growth. With global course grain production expected to reach record levels this season, the Council is overseeing various programs to further U.S. export markets.
PAID ADVERTISEMENT In Colombia, for example, plans focus on the urgency to ratify the pending free trade agreement (FTA) with the United States. «The Council is educating government officials here in Washington, D.C., on the tremendous loss of U.S. feed grain sales due to the absence of an FTA with Colombia,» said Chris Corry, USGC senior director of international operations. «Because no FTA between the United States and Colombia exists, U.S. farmers lost $3.14 million in corn sales last year, resulting in a 38 percent market share in 2009 compared to a 96 percent market share in 2007.»
Another market of concentration is Morocco where Tommy Young of the Arkansas Corn and Grain Sorghum Board and USGC advisory team leader said the Council is working to educate buyers on alternative methods of buying corn and sorghum. This includes using the free on board (FOB) purchasing system rather than the currently implemented cash and freight (C&F) method. «Moving from a C&F structure to an FOB scheme will enhance the U.S. market in Morocco,» Young said. «As the industry learns more and more about the U.S. marketing system, we believe FOB will convince buyers to purchase more often from the United States.»
The importance of educating industry buyers is also vital to a third region on the Council’s radar, Algeria. In Algeria, the Council is working to demystify common misconceptions about U.S. corn quality.
«Currently, the Algerian feed industry is paying a premium for South American corn as there is a perception that it performs better than U.S. corn in feed rations. Obviously this is not true,» Young said.
To address this, the Council is bringing together representatives from the Algerian feed industry and Ministry of Agriculture and providing them with accurate information regarding the nutritional value of U.S. corn in feed rations.
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