By: Lyndsey Erb-Sharkey, Director of Industry Relations, U.S. Grains Council
Exports are predicted to consume 77 percent of U.S. sorghum production in the 2015/2016 marketing year, according to the most recent U.S. Department of Agriculture’s (USDA’s) World Agriculture Supply and Demand Estimates (WASDE) report. Building on this information, the U.S. Grains Council (USGC) was an active participant in Export Sorghum, a two-day educational seminar held this week in Houston, Texas, for international buyers of U.S. sorghum hosted by the United Sorghum Checkoff Program (USCP) and the Texas Grain Sorghum Producers.
The sorghum conference was geared toward creating networking opportunities while providing both domestic and international grain buyers with insights on sorghum markets, trade opportunities, contractual procedures and logistics.
Attendees included Council trade teams from China and Mexico, the top U.S. sorghum markets last marketing year. They were greeted at the event by sorghum producers, educators and marketers. The buyers were particularly interested in hearing from presenters about shifts in planted acres in areas like Louisiana, Arkansas and Kansas. While acreage estimates varied, Justin Weinheimer, USCP crop improvement director, discussed how consistent demand signals ultimately drive acreage shifts. Participants asked several questions regarding input costs in the search of the ever-elusive break-even point for U.S. sorghum farmers.
The teams were able to make key contacts as the conference featured an impressive amount of networking time between buyers and sellers. Several Mexican trade team participants mentioned they made several connections this week that will be valuable when market conditions are favorable for U.S. sorghum exports to Mexico.
Chinese trade team members also found the networking time with U.S. sorghum producers to be the most valuable portion of the conference. As large feed mills in China begin to consider adjusting feed formulas to increase sorghum inclusion rates, they need to be reassured of the U.S. supply. One participant mentioned that using sorghum in his rations is allowing his mill to be profitable, but he cannot increase sorghum use any further without reassurance that the United States can be a reliable, long-term supplier.
Both teams also toured the U.S. sorghum export chain from research development to the farm to export channels in the Gulf.
Several representatives of Japan’s sorghum industry also attended the event and made contacts with U.S. sorghum producers that will benefit them in the future.
Click here for more information on this event.
Click here to view photos of the China trade team and click here to view photos of the Mexico trade team.