By: Kevin Roepke, U.S. Grains Council Regional Director for South and Southeast Asia
Delegates from South and Southeast Asia, a region which includes some of the world’s fastest growing economies, recently had the opportunity to gain firsthand knowledge of U.S. agricultural technologies, logistics and production outlooks during a U.S. Grains Council (USGC) led trade team tour associated with Export Exchange 2014.
Never before has this region been more relevant to the U.S. coarse grains industry. So far in 2014, Vietnam is the world’s third largest distiller’s dried grains with solubles (DDGS) importer, behind only China and Mexico. Indonesia is the world’s largest importer of corn gluten meal. Philippine DDGS imports are up 95 percent year-to-date. Vietnam alone has increased their corn imports by almost 240 percent in fewer than 10 years.
Trade exchanges like Export Exchange are designed to showcase the best of the best that the United States has to offer as the world’s most reliable supplier of coarse grains and co-products.
The members of the South and Southeast Asia delegation observed all sectors of the value chain while in the United States. By riding with American farmers in a combine, they learned that farmers are real people with families, just trying to make a living. The team witnessed both dry and wet corn mills and learned the processes that distinguish corn gluten meal from DDGS.
They watched as containers were being loaded for their home countries and learned what measures were in place to prevent mold, spoilage and product contamination. They also visited a Pacific Northwest port that loads bulk cargo vessels.
The highpoint of the trip was Export Exchange itself. There, more than 200 other international participants were able to exchange notes and business cards while discussing their markets and meeting with existing and potential suppliers. The group was impressed with the general session presentations, but the real excitement was occurring in the hallways, exhibit areas, and private meeting rooms, where one-on-one meetings with U.S. business contacts were held.
Price is always a key to sales; however, in dealing with commodities, many other factors matter as well. Issues like contract sanctity, load-out management, quality consistency and, of course, trust all come into play.
A reality of global trade is that customer visits are always a challenge to pencil into your calendar. And when your customer sits behind a desk halfway around the world, 12 hours ahead of you and speaks a different language, the challenge of thanking them for their business and learning about their operation is nearly impossible. That’s the greatest value of Export Exchange – bringing the world’s customers to one place and providing the platform for long term bonds and commercial activity.
Click here to view photos from the South and Southeast Asia delegation.