By providing regular updates on crop progress, market conditions and supply availability, the U.S. Grains Council (USGC) is able to showcase the value of U.S. grains to global buyers and end-users.
Last month, the Council continued this effort with USGC Manager of Global Trade Alvaro Cordero and Texas Sorghum Producers Executive Director Wayne Cleveland traveling to China to meet specifically with interested buyers and end-users of U.S. sorghum.
This engagement comes at a critical time as the Chinese government has announced policy changes to reduce its corn stocks and shift government support for farmers. The Council and the United Sorghum Checkoff Program are actively assessing the impacts that the corn policy changes could have on U.S. sorghum sales to this key market and are working to ensure U.S. sorghum continues to flow to China.
“We are here today to call on some of our major customers,� Cleveland said during his visit to China. “It’s important we make these visits to help us understand how we can further our work in this market and build demand for even more U.S. sorghum.�
China is the top market for U.S. sorghum, having purchased 5.5 million metric tons (216.5 million bushels) of the commodity as of March 31 for the 2015/2016 marketing year. This is down slightly from last marketing year at the same time but still a major turnaround from 2011/2012 and prior marketing years during which China purchased almost no U.S. sorghum.
“By visiting one-on-one with our customers, we are learning what works and how to address what doesn’t work,� Cleveland said. “These face-to-face meetings are critical to maintaining the flow of U.S. sorghum to the Chinese market.�
Cordero spoke at a Shanghai JC Intelligence Co. Ltd. (JCI) conference covering supply and demand outlooks for U.S. sorghum and distiller’s dried grains with solubles (DDGS). The conference was attended by about 700 participants eager to learn more about U.S. grains.
“Our visit to China was timed perfectly,� Cordero said. “We were able to network and build relationships with many interested buyers who wanted to know about purchasing and procuring U.S. sorghum.�
During that conference, Cleveland participated in a discussion panel that immediately followed presentations on grain markets.
USGC activities like these are crucial to keeping U.S. suppliers in front of Chinese customers and building relationships that many Asian customers value when making purchasing decisions.
Click here to learn more about the Council’s work to promote U.S. sorghum in China.