A U.S. Grains Council team of feed and livestock industry representatives from Taiwan traveled to the United States in the fall of 2019 to learn about the U.S. corn and distiller’s dried grains with solubles value chains, ultimately agreeing to purchase $16.8 million worth of the feed ingredients following their journey.
The Council organized the eight-member survey team to travel to Illinois, Nebraska and Washington and visit corn farms, ethanol plants, grain elevators/traders, a container trans-loader and an export terminal. The primary purpose of this activity was assuring participants of the quality, logistics, and service reliability of the U.S. export system and expanding their procurement volume from the United States.
The team included one Taiwan government officer, the top five feed producers in Taiwan, a grain trader (self-paid), and the Council escort. The tour helped the team members learn how U.S. farmers use agricultural equipment and technology to efficiently manage their farm operations. The team members were impressed by U.S. logistical management, cargo transportation, and the efficiency of the supply chain.
The capability and reliability of U.S. export channels are crucially important for Taiwanese customers to understand. U.S. corn is one of the key ingredients for their feed production, and the U.S. supply chain can help them improve managing the inventory to reduce capital costs. The predictable U.S. corn quality can assist nutritionists in their efforts to precisely handle the feed formula with good feeding efficiency.
The team members also learned how modern ethanol plants manage raw material flow and produce ethanol and DDGS, which helped them to be more confident in DDGS quality. This, in turn, provided a foundation for the Council to encourage feed millers and end-users to increase inclusion rates in their compound feed formula.
The team members included representatives from the top five feed producers, Great Wall, CP Taiwan, Non Sheng, Kuo Hsing and Fwusow. The Council helped them to facilitate face-to-face meetings and build direct connections with corn and DDGS suppliers like DeLong, CGB, Gavilon, Flint Hills and Cargill.
While traveling, team members negotiated with these suppliers to conclude sales of 65,000 metric tons of corn and 12,000 metric tons of DDGS, with a combined export value of $16.8 million. The Council invested $70,000 of Market Access Program (MAP) funds in support of this marketing program, generating a total return on investment (ROI) of $240 for every $1 spent.
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.