USGC Builds Relationships With Key South African Grain Buyers

During a recent mission to South Africa, U.S. Grains Council (USGC) staff urged local grain buyers to visit the United States immediately following a planned trip to Mexico to also learn about the U.S. grain handling system and quality standards. This program came to fruition at the end of May when these buyers visited Washington, D.C., and Indiana.

Their visit to the United States follows the Council’s recent work to learn more about conditions in South Africa, which has faced a severe drought due to an El Niño weather pattern and has resulted in that country needing to purchase grain from overseas.

“It is estimated that South Africa will have to import about 3.5 million metric tons (137.8 million bushels) of corn this year due to their decrease in productivity,â€� said USGC Manager of Global Trade Manuel Sanchez, who worked with both the U.S. team that traveled to South Africa and the South Africans who came to the United States. “However, taxed port facilities and lagging biotech trait approvals are hindering the country’s ability to import its needs.â€�

The team’s learning journey helped the South African grain buyers gain a deeper understanding of the U.S. grain export value-chain; to learn how U.S. corn is produced, graded and marketed; and to build relationships with U.S. suppliers.

“While there are many hurdles to overcome in this market, building relationships with key buyers is an important part of developing it,â€� Sanchez said. “These relationships last a lifetime and are crucial for U.S. grain suppliers and end-users as they allow us to export to that country when the conditions permit.â€�

The grain buyers’ agenda included stops at the U.S. Department of Agriculture, USGC’s headquarters in Washington, D.C., export facilities, corn farms and grain elevators.

“The team members from South Africa were impressed by the quality of U.S. white corn that was displayed during the visit,� Sanchez said. “They felt the quality has improved tremendously from their previous experiences and were very grateful for this opportunity to visit the United States on such short notice.�

The Council will continue to monitor and work within this market to develop its demand for U.S. coarse grains and co-products. USGC staff members globally are also working in other markets that are feeling the global impact of South Africa’s change in demand, like Mexico, to maximize opportunities for U.S. grains there, as well. 

Click here to view more photos of this team.

Click here to read past Global Update articles about USGC’s work in South Africa.