US Sorghum to China: On a Roll

By: Alvaro Cordero, U.S. Grains Council Manager of Global Trade

U.S. sorghum sales to China have made a splash in the current 2013/2014 marketing year that began Sept. 1, 2013. Combined exports and outstanding sales are up from zero last marketing year to more than 2.2 million metric tons (87 million bushels) this marketing year through March 6 according to USDA Foreign Agricultural Service.

This remarkable increase started in October 2013 when China purchased U.S. sorghum for feed use for the first time. This past fall China experienced tight supplies that drove its domestic corn prices well above world market levels. Imported corn and sorghum became cheaper than domestic corn in key regions of China. Combined with constraints on corn imports, including biotechnology issues and a tariff-rate quota, demand for U.S. sorghum in China has spiked.

The U.S. Grains Council has been providing technical assistance and information to this developing market since late 2012. The Council continued that commitment this week by hosting a team of farmers, traders and industry leaders from United Sorghum Checkoff Program and Texas Grain Sorghum Producers Board. The group visited China to present at three seminars to more than 500 Chinese sorghum end-users about strategic procurement of U.S. sorghum, quality and availability, and technical uses, including milling, of sorghum. These presentations helped underscore to Chinese end-users that the United States can be a reliable, long-term supplier of sorghum.

The Council will continue to monitor and foster this growing market that currently is expanding opportunities for U.S. sorghum exports.