Council Leadership Team First to Follow Up on FTAs

An elite U.S. Grains Council delegation was the first group to meet with key officials in Panama and Colombia since U.S. passage of the Colombia and Panama free trade agreements (FTA).

USGC Chairman Wendell Shauman, National Corn Growers Association Chairman Bart Schott, were accompanied by Council staff, Floyd Gaibler, director of trade policy, Chris Corry, director of international operations, and Kirk Schultz, regional director in Latin America. The team explored the outlook for FTA implementation with government officials in both countries, with private sector grain customers, and with U.S. ambassadors and USDA staff.

“The Council has been committed to regaining unfettered access to markets in both Panama and Colombia,” Shauman said. “The FTA will go far toward reversing trade flow of South American corn and soybeans moving into the Caribbean Basin.”

Schott, who spent much of his year as NCGA president working for U.S. ratification of the agreements, said, “Our purpose was to see how far those folks have gone on implementing the FTAs,” said Schott, who spent much of his year as NCGA president working for U.S. ratification of the agreements.

“In Colombia, we met with a couple of big conglomerates, and they are very excited about the new FTA. Some thought it would be implemented by April, some said June, and some said the end of the year,” Schott reported.

“Now it sounds like [implementation] will progress smoothly in Panama and Colombia, and we’ll be back exporting corn to them,” he added.

The delegation also used the opportunity to answer questions about the availability and quality of U.S. feed grains, reconciling concerns about high levels of dust and foreign material in some shipments.

Both countries are currently sourcing corn from Argentina, and it’s very good quality, according to Shauman. However, excitement about the shipping advantage with U.S. feed grains is clear. Panamanian customers, for example, can place an order and receive their shipment within five days.

Once fully implemented, the Colombian FTA is expected to increase all U.S. agricultural exports by an additional $370 million per year. In Panama, the pact is projected to produce an additional $46 million in annual sales.
U.S. Corn Mission Sees Potential in Vietnam
The rapidly increasing entrepreneurial spirit witnessed in Vietnam encouraged participants of the U.S. Grains Council’s Corn Mission about future opportunities for U.S. agricultural products.

Nine U.S. producers and corn organization staff traveled to Japan, China and Vietnam Nov. 28-Dec. 9 for a firsthand look at the challenges of developing and defending export markets and to share insights on the U.S. 2011 crop supply and quality. Participants met with international customers, key foreign government officials and the Council’s foreign-based international staff.

Vietnam is the fastest growing feed market in Asia. Although Vietnam mostly fills its corn needs with domestic and nearby country imports, the group still felt encouraged by the market potential.

“The drastically changing consumer habits will increase grain demand in Vietnam. We need to continue to educate Vietnamese buyers and farmers on benefits of buying from the United States,” said Pat Feldpausch, mission participant and president of the Corn Marketing Program of Michigan. “The United States has a dependable system that provides transparency and risk management. We are a consistent supplier and buyers get better value for their purchases. Buying corn from nearby countries or from Ukraine is a risk. You may get a bargain but it’s a gamble.”

The group had the opportunity to see a Council program in action at the local feed mill where USGC Consultant Dr. Budi Tangendjaja was conducting a seminar on the use and application of U.S. distiller’s dried grains with solubles (DDGS).

Paul Herringshaw, mission participant and vice chairman of the Ohio Corn Marketing Program, said, “Vietnam has agile users of U.S. DDGS. It’s a good product that helps every diet. It’s a great way to move protein at a lower moisture, and it’s replacing Indian soybean meal and other competitive ingredients. We need to continue market education to increase the product moving into the country.”

In 2010, Vietnam became the 15th largest market for U.S. agricultural products. U.S. agricultural exports to Vietnam grew fivefold from a mere $216 million in 2006 to $1.3 billion in 2010. Vietnam is the 8th largest market for U.S. feedstuffs, doubling over the past two years and valued at $151 million in 2010.

Mission members include:

• Bruce Wetzel, Board Member, Texas Corn Producer Board
• Pat Feldpausch, President, Corn Marketing Program of Michigan
• Tom Mueller, Board Member, Illinois Corn Marketing Board
• Randy Woodruff, Board Member, Wisconsin Corn Promotion Board
• Paul Herringshaw, Vice Chairman, Ohio Corn Marketing Program
• Kurt Hora, Board Member, Iowa Corn Growers Association
• Rob Korff, Chairman, Missouri Corn Merchandising Council
• Kelly Brunkhorst, Ag Program Manager, Nebraska Corn Board              
• Nancy Kavazanjian, Communications Director, Wisconsin Corn Promotion Board, Inc.   

Quelle: US Grains Council