Q&A: Sanchez Shares Upcoming Opportunities In China

The U.S. Grains Council (USGC) maintains nine international offices in addition to its base of operations in Washington, D.C., each tasked with promoting U.S. agricultural exports in their respective countries or regions. When staff from those offices visit the Council’s headquarters, it’s an opportunity to get a closer look at their strategies and successes working for U.S. producers around the world.

USGC China Director Manuel Sanchez was in Washington this week and Global Update editors caught up with him to chat about developments in the country.

Global Update: What are some exciting upcoming programs in your market?

Sanchez: The next three months are going to be quite busy for us. We have an ethanol mission we’re bringing to China, the first since the pandemic, which will allow us to assess the market for ethanol, where we stand and what the potential is there. I’m also hoping to bring two separate teams from China to the U.S. for Export Exchange. Sorghum is our number one priority for the event so one team will focus on sorghum and another will focus on sorghum, corn and distiller’s dried grains with solubles (DDGS) combined. Lastly, we’re looking forward to China’s International Import Expo. This will be our seventh time participating and I think it will certainly allow us to showcase the value of U.S. agriculture, specifically barley, corn and sorghum.

Global Update: Why should U.S. producers be excited about the Chinese market and the work your office is doing there?

Sanchez: China is a huge market. There’s been many barriers and setbacks in the past, but it has consistently imported more than 10 million metric tons of corn each year. Last year, China imported 27 million metric tons of corn from all origins. That is extremely significant volume. I’m not saying there aren’t challenges, but it’s going be hard to find another market like China. The Council has been operating in China for more 40 years, so I would take this opportunity to remind our stakeholders and producers about the importance of being active in this global market and being active in China as the single largest market for corn and sorghum in the last five years.

Global Update: What are you hearing from Chinese customers about what they’re looking for in their imports?

Sanchez: One thing I’ve learned is U.S. commodities in general are perceived as premium products and customers in China seek out our goods. The current political environment isn’t necessarily the most conducive to trade between the U,S. and China, but I can tell you from an average consumer perspective, they see our product at a premium compared to some of the other origins. That’s very important, and we cannot lose sight of that reputation and what it represents to customers internationally.

Global Update: You’re always excited to have Council members and staff participate in programs in China. Why do you feel it’s so valuable for industry members to see the market firsthand?

Sanchez: Person-to-person exchange is crucial. The reality is the pandemic affected everybody, but it particularly affected China compared to the rest of the world. It took four years for people to begin traveling to China at a normal frequency. So part of my job – and what I see – is the importance of having that face-to-face connection and building a strong customer to supplier relationship. We need to have a better sense of how our customers in China are utilizing U.S. products, how the market has shifted since our last visits and also to bring in new perspectives from people who have never visited China that might have different ideas of what the market could be or how they could they could better utilize our commodities.

Learn more about the Council’s work in China here.