USGC’s MAP-Funded Technical Assistance Helps Spur Record U.S. Sorghum Sales to China

U.S. sorghum exports to China are expected to reach more than 3 million tons in September-August 2013/14, approaching $1 million in value, compared to exports of 3,376 MT the previous year.  Building demand for U.S. sorghum was attractive as sorghum is not subject to a tariff rate quota restriction in China, the way corn is.  Starting in 2012, the USGC used MAP and FMD funds to assess potential demand.  USGC and United Sorghum Checkoff Program representatives traveled to China to familiarize the Chinese feed and livestock industry with the benefits of feeding sorghum in pork, poultry and aquaculture production. These efforts helped convince the Chinese of the quality and value of U.S. sorghum and its suitability for inclusion in their feed rations. The surge in Chinese sorghum purchases began in the fall in 2013, when China experienced tight feed supplies that drove its domestic corn prices well above world market levels. Imported corn and sorghum became cheaper than domestic corn in key regions of China.  In addition, biotechnology issues with U.S. corn and DDGS imports have resulted in China forecast to import about 30 percent of U.S. sorghum production, making it the largest U.S. sorghum export market.  However, despite all the challenges surrounding U.S. feed exports, China has imported more than 3 MMT each of U.S. corn, DDGS, and sorghum in year ending Aug. 31.