Peru has started the year with surging U.S. sales, filling its import quota for U.S. corn of 709,260 metric tons (27.9 million bushels) in the first seven days of the year. In the 2013/2014 marketing year, Peru finished as the eighth-largest U.S. corn export destination, setting an historic record of more than 1.2 million tons (47 million bushels) imported. And, if the anticipated accumulated exports to Peru are realized, within the first 5 months of the 2014/2015 marketing year, it will have already exceeded the total imports of the 2013/2014 marketing year.

After a standstill of corn imports in the previous few years, these figures are a refreshing change and created a timely backdrop for the U.S. Grains Council’s presentation to Peruvian buyers of the 2014/2015 Corn Harvest Quality Report results.

Members of a U.S. Grains Council (USGC) team in the country last week held face-to-face meetings with key buyers and end-users of U.S. corn to help them plan appropriately for the coming year. Team participants included:

• Bob Bowman, Iowa corn farmer and USGC Western Hemisphere Advisory Team Member;
• John Burke, Michigan corn farmer and Corn Marketing Program of Michigan Board Director;
• Marri Carrow, USGC Regional Director of the Western Hemisphere;
• Manuel Sanchez, USGC Manager of Global Trade; and
• Jaime Cuellar, USGC Regional Consultant.

During these consultations, the Council members and staff used the corn quality report to demonstrate the advantages of U.S. corn.

“The Peruvian buyers and end-users were thankful to be presented with such timely, reliable and transparent information,” Bowman said. “They asked numerous questions about farming in the United States and how low corn prices would impact U.S. planting decisions in 2015.

“After addressing their questions, the buyers and end-users left the meeting with a greater confidence in the United States’ ability to meet their corn demand.”

While the price is currently attractive to importers and end-users, the reputation of U.S. corn quality has room for improvement.

“Some of the larger grain importers said they returned to U.S. corn this past year, but didn’t have positive experiences,” Carrow said. “Just like in Colombia, educating importers on contract specifications and purchasing power will significantly help them receive the desired grain and ultimately improve their perception of U.S. corn.

“While the international prices of corn triggered the influx of U.S. imports, as the pendulum swings, it will take more than an attractive price to keep this market. Ensuring this market is strong over the long term is critical work for the Council.”

The Peruvian presentation of the harvest quality report is one of many happening this month around the globe. A companion report, the Corn Export Cargo Quality Report, will be available in the spring to help educate customers about the quality of U.S. corn as it is loaded for export. 

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