News & Events
By: Wennie Liu, U.S. Grains Council Dairy Program Manager in China
The U.S. Grains Council (USGC) hosted a team of Chinese dairy managers in the United States this week to learn firsthand about modern U.S. dairy practices from U.S. producers.
The visit included stops at large-scale U.S. dairy operations in California, the World Dairy Expo and the University of Wisconsin for a short course on modern dairy production practices. The team also visited ethanol plants, where U.S. distiller’s dried grains with solubles (DDGS) are produced, and U.S. corn farms in Wisconsin.
Councell and Han examine farm documents on Councell’s farm, Sept. 24, 2015.
Han and Councell pose on a combine on Councell’s farm, Sept. 24, 2015.
U.S. Grains Council (USGC) Manager of Global Trade Alvaro Cordero recently returned from a market servicing mission to China and shared with the National Association of Farm Broadcasting (NAFB) some of his impressions of China’s demand for U.S. sorghum and distiller’s dried grains with solubles (DDGS). Cordero also discussed what the Council is doing to keep grain flowing to that important market.
A team from the United States joined the U.S. Grains Council’s (USGC’s) China staff at two events this week to present to Chinese stakeholders on the commitment, capacity and reliability of U.S. producers in serving the Chinese livestock industry.
Two U.S. Grains Council (USGC) consultants, Dr. Gerald Shurson and Dr. Scott Beyer, are in China this week on a trade servicing mission to provide the local industry with technical information about U.S. sorghum and distiller’s dried grains with solubles (DDGS).
As reported in last week’s Global Update, China continues to be the top importer of U.S. DDGS and sorghum despite the current uncertainties in the local economy and uneasiness about trade with the country in the international grain market.
China continues to be the top importer of U.S. distiller’s dried grains with solubles (DDGS) and sorghum despite the current uncertainties in the Chinese economy and uneasiness about trade with the country in the international grain market. Factors contributing to the ambiguity in the Chinese market include a very large corn harvest in China set to begin soon, a new regulatory system for grain importers and an ongoing discussion about the support price of corn in China.
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.
Grain markets coped with losses and new uncertainty this week as the latest U.S. crop production numbers from the U.S. Department of Agriculture (USDA) pointed to higher-than-expected yields and China’s central bank devalued its currency approximately 4.4 percent over three days.
China announced Tuesday it would devalue its currency, the renminbi, and continued the process Wednesday and Thursday.
China’s National Development and Reform Commission (NDRC) announced last week that the country will move to a more market-oriented pricing mechanism on corn procurement.
Market-oriented reforms in China’s corn sector have been discussed for several years and while there are outspoken advocates of market liberalization in China, there has also been significant resistance to reforming this policy.
A U.S. Grains Council (USGC) mission including U.S. environmental and public health specialists traveled to China last week to discuss how air and water quality in that country could be improved through the use of ethanol in the country’s fuel.
”China already has a 10 percent mandatory blend rate for gasoline in specified markets,” said USGC Manager of Ethanol Export Promotion Programs Ashley Kongs. “But there are many large cities and regions seeking to improve air and ground-water quality that are not yet using E10 fuel.”