Last week, U.S. Grains Council (USGC) staff and Board of Directors leaders, including USGC Chairman Josh Miller and Vice Chairman Brent Boydston, spent time in Kenya and Tanzania to learn about the current Council-sponsored programs in place and how the organization can continue to play a role in these countries as their demand for grain grows.
“The Kenya and Tanzania markets hold great potential for U.S. grains,” Miller said. “These are long-term market opportunities that we are fortunate to be involved with on the ground floor.”
“East Africa holds immense potential as a future export market region for U.S. feed grains,” said Katy Wyatt, USGC manager of global strategies. “The region, especially Kenya and Tanzania, is changing dramatically – demographics, growing middle class and changes in consumer preferences are key factors driving demand for access to higher quality and nutritious protein foods, like poultry, beef and dairy products.”
While this demand is apparent within these markets, production challenges and constraints are limiting growth potential, chief among these being the high cost of animal feeds as well as inconsistencies in access to raw materials for animal feed production. Changes abound in both Kenya and Tanzania, with local feed and livestock industry associations actively working to address factors hindering development and growth of these sectors.
“While these markets may not be U.S. feed grain export markets in the immediate short-term, opportunities for this to change in the coming years are apparent,” Wyatt said. “These are future markets that should be taken seriously and nurtured – and this is the perspective that the Council has. Addressing production and efficiencies challenges today, will enable these markets to be future export markets for the U.S. agricultural sector.”
During the mission, the group met with industry groups, including partners AKEFEMA and Unga Farm Care, in addition to making site visits to feed mills and poultry and dairy farms where sorghum feeding trials are being conducted. In Nairobi, the Council and AKEFEMA signed a multi-year memorandum of understanding (MOU), which will see the two organizations working together to support the feed and livestock industry in Kenya to develop and expand.
As these markets continue to grow, the Council looks forward to building upon the industry partnerships created over the years in addition to creating new.
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.