New Logistics Opens New Export Opportunities in the Middle East & North Africa

The North African and Middle East markets are typically bulk vessel markets for U.S. feed grains. The Council has tried unsuccessfully in the past to introduce containerized grain shipments like we see occurring in Asia; however, the availability of affordable container shipments has been lacking. This changed in 2021, and container shipments into the region from the U.S. suddenly became competitive.

Realizing this opportunity, the Council hosted a workshop for grain purchasers across the region at Kansas State University’s International Grains Program Institute. The Council invited the leading grain purchasers and end-users from the Middle East and Africa (M.E.A.) region to attend a training course that highlighted both bulk and containerized grain exporting methodology and pricing. The seven sessions covered all aspects of grain purchasing, from an
overview of ocean freight and logistics and risk management tools to a review of the U.S. Department of Agriculture’s (USDA’s) grain grading and standards.

The technical assistance and expertise offered through the I.G.P. course were timely and instrumental for those interested in buying feed grains by containers. Following the training program, attendees of the Council’s training program were surveyed. Council sponsored attendees bought more than 22,000 metrics tons of U.S. DDGS in containers to Tunisia (1,000 metrics tons), Saudi Arabia (8,000 metrics tons), Turkey (7,000 metrics tons), the U.A.E (4,000 metrics tons), and Jordan (2,000), valued at more than $ 6.6 million.

The Council invested $30,000 in Market Access Program (MAP) funds to execute this educational program. The resulting $6.6 million worth of business conducted yields a return on investment of over $220 per $1 of MAP funds invested.