U.S. market share of Egypt’s corn imports rebounded from almost nothing in 2013 to 36 percent of 8.5 million metric tons (228.3 million bushels) in Calendar Year (CY) 2014. U.S. sales totaled 3 million metric tons (118.1 million bushels) valued at $543 million. Using Market Access Program (MAP) funds, the Council invested $83,000 in trade promotion programming contributing to this rebound in exports, generating an estimated Return on Investment (ROI) of $6,542 for every MAP $1 invested.
The Egyptian market is a heavyweight grain corn buyer in the Middle East/North Africa region with total corn imports reaching 8.5 million metric tons (334.6 million bushels) in CY 2014. According to USDA, Egypt is to be the world’s 5th largest importer of corn in CY 2015. The U.S. Grains Council has long been engaged in this market defending market share and doing technical programs to expand demand for corn, sorghum and corn co-products.
In CY 2013, U.S. market share declined dramatically to nearly zero as a result of the 2012 drought in the U.S. midwest, which brought low corn supplies and high prices. Despite this, the Council maintained a strong presence in the market through customer servicing programs that were looking for opportunities to rebuild U.S. market share in 2014. The Council engaged the market with technical programs, conferences, and workshops related to the Regional Laboratory for Food and Feed, corn co-product promotion and customer servicing programs.
More specifically, the Council used its annual U.S. Corn Harvest Quality Report and U.S. Corn Export Cargo Quality Report to tell the story of U.S. corn quality to the major Egyptian corn importers. The Council also invited three of the top four corn importing companies – Cargill, Cairo 3A and Medsofts – and the head of the Egyptian dairy industry association and the largest corn starch and sweetener company, to Export Exchange 2014 and to visit U.S. corn and sorghum producers in Nebraska following the conference. As a result, of the trip the participants were able to see that U.S. corn producers had responded to the previous year’s drought by producing a record, good quality corn crop and that Egypt could once again buy U.S. corn.
All of these activities and having boots on the ground making regular contact with the industry, have contributed to the rebound that U.S. corn exports experienced with the arrival of a large U.S. corn crop in MY 2013/2014.
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.