U.S. Grains Council officials attended the International Grains Council Conference on June 10, 2014, in London. At the conference, traders, industry representatives and policy makers from around the world met to discuss the grain trade.

The Future of Corn Trade in China

As a key presenter at the conference, Feng Jilong, general manager of the Dalian Northern International Grains Logistics Company, spoke about the need for corn imports in China to feed a growing middle class. While China’s yields and domestic production continue to grow, they are outpaced by China’s rapid economic growth and burgeoning food demand.

Recognizing the political sensitivity surrounding biotechnology acceptance, Feng proposed an alternative strategy in which China could import commodity corn, and then produce its own ethanol and distiller’s dried grains with solubles (DDGS). This would allow China to trim its oil and DDGS imports, reduce environmental pollution and logistical costs, and cut prices for consumers in China.

As a solution to the current restrictions in China, the alternative could prove to be beneficial to both China and corn exporting countries if the government in China would allow for this reallocation of resources.

“The United States is happy to export corn in all forms,” said Ron Gray, USGC vice chairman and representative at the conference. “The government in China will act in its own perceived best interest, and whatever their choice, U.S. producers have the capacity and flexibility to meet China’s growing demand.”

Industry Discussions of Grains Production

Attendees at the conference had the opportunity to discuss current events in major grain production areas, including challenges to increasing world production. One of the topics often discussed was the growing grain production in the Ukraine and the uncertainty surrounding exports, especially out of ports near the Russian border.

Industry professionals also had conversations about the production potential of major Southern Hemisphere grains producers, and the logistical and political hurdles that need to be overcome to reach their growth potentials.

By attending, the Council hopes to use information learned at the conference to better serve its markets worldwide.