Monopolies, Reform Policies, MTBE and U.S. Ethanol Exports

Mexico ethanol

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.

Video: USGC Expands DDGS Initiative in Southern Mexico to Sheep

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.

Expanding U.S. Sorghum Sales in An Established Top Market

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.”

U.S. DDGS Exports Up 48 Percent

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.

Latin America’s Barley Sector Builds Ties with U.S. Producers and Exporters


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.

Trans-Pacific Partnership Negotiations Continued in Ottawa

In July, chief negotiators from the 12–countries participating in the Trans-Pacific Partnership (TPP) talks met in Ottawa, Ontario, to continue their work. The TPP is a potential free trade agreement between countries in the Asia-Pacific region, including Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, the United States and Japan.

Building on Success: Council Continues Trade Servicing Efforts with Mexico

Mexican Group

As a result of proximity, steady demand growth, the North American Free Trade Agreement and the ability to ship grain by truck, rail and vessel, Mexico has been a top U.S. corn market for years. This year is no exception. So far this marketing year (Sept. 1, 2013, through July 10, 2014), Mexico has combined sales (accumulated exports and outstanding sales) of 10.5 million metric tons (413 million bushels), compared to 4.4 million tons (173 million bushels) over the same time period last year. Mexico is still a growing market for U.S. grains and the U.S.


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