USGC-NCGA Leadership Hear Key Messages From Southern Neighbors

Officers of the U.S. Grains Council and National Corn Growers Association traveled to Colombia and Mexico to met with key customers and end-users

Grower leaders were greeted by customers anxious and excited to do business with the United States

This year, Mexico is leading the world as the top U.S. corn export customer with accumulated exports of more than 5.5 million metric tons (216 million bushels) from Sept. 1, 2013, to March 20, 2014, an increase of 253 percent over the same time period last year. Additionally, Colombia is making a comeback as a regular buyer of U.S. corn, with accumulated exports totaling more than 1.5 million tons (59 million bushels) from Sept. 1, 2013, to March 20, 2014.

During the last week, the officers of the U.S. Grains Council and National Corn Growers Association traveled to Colombia and Mexico and met with key customers and end-users, expressing appreciation for their business and reaffirming commitment to the export market. In both countries, grower leaders were greeted by customers anxious and excited to do business with the United States.

“Simply being here has sent a strong message to our customers in these key markets that we care and that we wish to continue to enjoy mutually beneficial trade relationships,” said Julius Schaaf, USGC chairman.

Martin Barbre, NCGA president, commented that, “the simple comeback of the Colombian market after the free trade agreement is a true success story for both the Council and NCGA and highlights the fact that when trade works, the world wins.”

After the drought of 2012, the United States has regained its dominant position in the region.

Meetings in both countries highlighted economic strength and demand growth for livestock products. With growing demand for meat, milk and eggs comes an increased demand for feed products. Despite the overwhelming good news coming from both markets, importers expressed concern about the increasing delay in shipping times from the United States.

Recent delays have caused importers to feel that U.S. infrastructure and logistics may not be keeping up with the pace of production and increased worldwide demand. With world corn imports up more than 85 percent and distiller’s dried grains with solubles (DDGS) exports up more than 54 percent from September 2013 to January 2014 over the same time period last year, improvements to the U.S. logistics system need to be a priority.

“In order of priority, we look at quality, logistics and price,” said Alejandro Lozano, Italco Feed Company procurement manger.

As long as the United States takes care of these issues, it will continue to have neighbors that are excellent customers.