2011 u.s. grains council sorghum mission u.s. grains · pdf filetitle slide u.s. grains...

Title slideU.S. Grains Council

Developing Markets | Enabling Trade | Improving LivesDeveloping Markets | Enabling Trade | Improving Lives

2011 U.S. Grains Council Sorghum Mission

Morocco, Spain & BelgiumJuly 5‐15, 2011

Developing Markets | Enabling Trade | Improving Lives

Team Participants

Team members included: • John Dvoracek, Nebraska Grain Sorghum Checkoff Board • Jeff Rutledge, Arkansas Corn & Grain Sorghum Board • Brad Brainard, Oklahoma Sorghum Commission • Benjamin Smith, Texas Grain Sorghum • Jerry Van Zee, United Sorghum Checkoff Program • William Greving, Kansas Grain Sorghum Commission • David Thomas, National Sorghum Producers • Lindsay Kennedy, United Sorghum Checkoff Program

USGC staff included:• Chris Corry, senior director for international operations; • Kevin Roepke, manager of international operations; and • Cary Sifferath, senior director for the Mediterranean and Africa.


Morocco


Morocco Market Overview

• Before 1995, sorghum was not even listed as a product to import into Morocco

• Sorghum is now a security for Morocco– Aflatoxin in corn is too risky

• USGC began lobbying Moroccan government, made opportunities for U.S. sorghum

• Rapidly developing poultry industry– Moroccan poultry industry is seeing 5% yearly growth– Country met 2014 poultry production goals by 2010


Moroccan Sorghum Imports

0

20

40

60

80

100

120

140

160

2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011

Thou

sand

Metric

Ton

s

Sorghum TY Imports from U.S.

ThroughJuly 21


Moroccan Trade Mission Activities

• Graderco – Trade Company in Casablanca• CasaGrains – Trade Company in Casablanca• Alf Sahel – Feedmill near Casablanca• Atlas – Feedmill in Mediouna• Zaim’s Egg Farm – Benguerir• COPAG – Dairy and dairy product manufacturer in Taroudant


Graderco – Trading Company

• Located in Casablanca• Roughly 1 million bu. of grain in storage, 50k on site in Casablanca in two silos

• Biggest challenge = education to grain buyers


CasaGrains – Trading Company

• Located in Casablanca• 56,000 tons in silo storage, 30,000 tons in flat storage

• Started using sorghum because of USGC efforts

• Buy sorghum FOB


Atlas – Feedmill

• Production is 180,000 tonnes/year

• Grain quality is No. 1 priority, price is No. 2

• 25‐35% of grain used is U.S. sorghum• Less problems with

aflatoxin• Mostly import

sorghum from U.S.


Alf Sahel – Feedmill

• 1.2 million tons/year production capacity

• Largest feed producer in Morocco• State of the art facilities and

equipment• U.S. sorghum represents roughly a

quarter of the grains they use• Utilizing sorghum for livestock and

pet feed• Utilizes heat treatment


Zaim’s Egg Farm

• 400,000 layers per house—currently 900,000 layers• Extremely sanitary conditions• State of the art layer facility located in Benguerir, Morocco• NOT utilizing sorghum in feeding rations

CBS6

CBS7

CBS6 it is 400,000 layers per house. The new layer house we visited had 400,000 birds. They do have other smaller houses at other location. They have 900,000 layers currently in productionCary B. Sifferath, 8/3/2011

CBS7 Actually they weren't using sorghum at all. The reason being that they cannot get a course grind on sorghum with their hammer mill like they do with corn. When they use sorghum, too many of the berries go straight through the screen in the hammer mill. The reason for this visit for the mission members is to learn for sorghum to expand into Morocco's layer industry, we need to show how roller mills can be used to grind sorghum to a simular size as they get with corn on a hammer millCary B. Sifferath, 8/3/2011


COPAG – Dairy & dairy products

• Large dairy coop• Using steam flaker

provided by Sorghum Checkoff

• In 2003, USGC/COPAG support development of first U.S.‐style open feedlot with 10k head capacity

• Major end user of feed grains


Morocco ‐ Observations

• Opportunity, opportunity, opportunity• Rapidly growing poultry industry opens the door for U.S. sorghum

• Need for continual education with grain buyers and end users on sorghum’s nutritional benefits and quality


Spain


Spain Market Overview

• No. 2 export market for U.S. sorghum in 2010/2011 marketing year

• U.S. sorghum exports in the EU totaled almost 730,000 tons (29 mil bu.) as of early March 2011

• Sales of an additional 60,000 tons (2 mil bu.) were outstanding.

• From no sorghum purchases last market year, Spanish purchases now stand at 590,000 metric tons (23 mil bu.)


SPAIN US SORGHUM IMPORTS

No. 1 US importer

As of July 21


Spanish Sorghum Market Share 2010

86%

13%

US

France

Portugal

Others


Spain Activities

• Port of Tarragona• San Cosme• Picasat in Campillo• Leycegra facilities• Port of Malaga


Port of Tarragona

• Most important port for imports of grains from U.S.

• Average traffic unloaded of 2 million tonnes/year

• SITASA – Silos de Tarragona– 400k tones storage capacity at the port– Unloading capacity of 15k tonnes/day

• Met with Riera Roura, private importer, biggest merchant (imports)

• Met with Huevos Guillen– Largest egg producer in Spain,

6.5‐7 mil layers


San Cosme, Picasat & Leycegra

• Using sorghum for poultry feeding in Spain

• Buy imported grain that arrives at Port of Malaga


Port of Malaga

• Oldest continually operated port in Spain

• Important for importation of grains into the EU


EU Import Levy Overview

• EU levy system used inaccurate reference price for sorghum– Levy on U.S. sorghum increased, pushing sorghum prices in Europe higher than the price of corn

• USGC petitioned EU for a rule change to use U.S. sorghum prices or U.S. corn prices as its reference

• Worked with European grain groups and USDA’s FAS staff in Brussels

• On July 3, EU implemented usage of CBOT corn price as its reference point for determining sorghum levy


EU Meetings

• USDA – FAS in Brussels– Maurice House, Minister Counselor– Cynthia Guven, Senior Agricultural Attaché – J. Barrie Williams, Sr. Agricultural Specialist

• European Commission – DG Agriculture on sorghum levy issue– Herman Verteijlen, Director Agricultural Markets– Felix Bloch, International Relations Officer OECD– Giampiero Genovese, Market Analysis Officer– Louis Flodelers, responsible for levy tariff calculations

• COCERAL and FEFAC– Dr. Teresa Babuscio, Secretary General, COCERAL– Alexander Doring, Secretary General, FEFAC


Additional Media

• Visit the Sorghum Checkoff YouTube channel for videos from the sorghum trade mission– www.YouTube.com/sorghumcheckoff

• For a complete set of photos from the trade mission, visit the Sorghum Checkoff on Flickr.com– www.Flickr.com/USCP


Questions?

Brought to you by the U.S. Grains Council and the United Sorghum Checkoff Program

2011 u.s. grains council sorghum mission u.s. grains · pdf filetitle slide u.s. grains...

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