U.S. Sorghum Promotion In China Yields Large Dividends

Using Market Access Funds (MAP) and Foreign Market Development (FMD) funds, the Council began introducing U.S. sorghum to the Chinese market in 2013.  As a result of the Council’s efforts, China has become the number one importer of U.S. sorghum, importing 6.3 million metric tons (169 million bushels) in Calendar Year 2014 valued at over $1.47 billion.  China continues to be the number one destination for U.S. sorghum in 2015 (January to April) with imports of 3.6 million metric tons (141 million bushels) valued at $866 million.

Prior to 2013, China had never imported U.S. sorghum.  The Council realized that there was an opportunity for U.S. sorghum due to China’s high domestic corn prices and their policy to restrict corn imports.  Using MAP funds, the Council conducted a number of promotion efforts since 2013 to introduce and expand U.S. sorghum use by the Chinese feed industry including:

• A series of promotion efforts at large seminars co-sponsored by the Council and the United Sorghum Checkoff Program reaching over 1,000 representatives of the feed and livestock industry in China.
• A series of technical seminars by a sorghum nutrition specialist on sorghum use in swine feed.  These seminars reached over 400 Chinese swine industry managers and nutritionists.
• Seminars in three cities – Qingdao, Guangzhou, and Shanghai – that included sorghum nutritionist and also trade representatives from the U.S., jointly funded with MAP funds and a grant from Texas Department of Agriculture.
• U.S. Sorghum traders engaged in promoting U.S. sorghum in several Chinese cities reaching over 500 industry representatives.
• Further promotion included a sorghum nutrition program in January 2015 with seminars in two southern cities (Guangzhou and Nanning) where sorghum is becoming a popular feed ingredient, reaching a total of 300 swine and poultry nutritionists from livestock enterprises in China.
• In October 2014, the Council led a sorghum buyer team to participate in Export Exchange 2014 and visited major sorghum suppliers and exporters in Texas. The conference and trade team visits provided opportunities for potential sorghum buyers from China to evaluate the 2014 sorghum crop and explore trade opportunities and the outlook for 2015.
• In January, 2015, a joint effort with the United Sorghum Checkoff Program and Texas Grain Sorghum Association, a Council-led team visited China and met with swine and poultry producers, representatives of the feed industry and traders to discuss the U.S. sorghum supply, demand and pricing situations and the optimal use of sorghum in livestock rations. The team also presented half-day seminars in Guangzhou and Nanning to more than 200 Chinese nutritionists and livestock producers.

All the major Chinese importers and end users of U.S. sorghum have participated in Council promotion programs over the past two years.  To date, the Council has invested $300,000 of MAP funding to promote U.S. sorghum exports to China.  As a result, export sales of U.S. sorghum totaling over $2.44 billion generating a Return on Investment (ROI) of $8,133 per $1 of MAP funding invested.