Export Exchange 2012 Leads to Mexican Purchases

By using Market Access Program (MAP) funds, the Mexico office hosted 24 members of the Mexican livestock and feed grain importing industry to the US Grains Council Export Exchange 2012. The program took place in Minneapolis during October 2012. As a result of the event 4 participants confirmed purchases of 60,000 metric tons of feed ingredients valued at $18.3 million.

Export Exchange 2012 allowed the U.S. Grains Council to bring over 500 U.S. and international buyers and sellers together to participate in a one-of-a-kind trade exhibition. This event gathered buyers and sellers into one place and set the conditions for serious business negotiations among participants. Presentations about production, supply, logistic and commercial uses for corn, sorghum, barley and co-products were also a feature of this program. Participants had the opportunity to experience firsthand comments on the drought conditions, market prices and what to expect for the upcoming season.

As the result of their participation in this event the following sales took place.

• Inter Industrias del Sureste, purchase 35,000 metric tons of corn, sorghum and corn gluten meal. This buyer generally buys combo shipments with 35,000 metric tons delivered every 25 to 30 days. This buyer represents a group of 10 different companies buying together. Annual grain purchases for this group range in 250,000 metric tons of sorghum, 150,000 metric tons of corn. I expect that if the price is right in this initial purchase, additional purchases will follow later this year.

• Productores Agropecuarios Tepexpan purchased 5,000 metric tons of soybean meal. This buyer is part of a 4 buying group doing direct purchases with annual grain imports in the range of 80,000 metric tons of corn and 70,000 metric tons of sorghum. This buyer will follow with other purchases if negotiations and conditions fit.

• OMG purchase 5,000 metric tons of corn and 10,000 metric tons of Dry Distillers Grains with Solubles (DDGS). This buyer is a merchandiser mainly for DDGS in Mexico. Annual sales for this company are in the range of 900,000 metric tons of DDGS.

• Empresas Guadalupe purchased 5,000 metric tons of sorghum.

The Council invested US$105,000 in sponsoring the participation of these 24 participants to the 2012 Export Exchange. As a result all sale initiated or finalized at this event are value at $18.3 million with an ROI of US$174 per every MAP US$1 invested.