Washington, DC
September 25, 2008
The European market offers
“tremendous” long term export opportunities for U.S. sorghum
producers, according to participants of the
U.S. Grains Council’s 2008
Sorghum Mission to Europe. Last week the team visited Germany
and Spain to explore U.S. sorghum export opportunities in each
market.
“There is tremendous long-term opportunity for U.S. sorghum to
be exported into Europe because end-users will have better
access to sorghum, know how to use it due to ongoing education
efforts and will build it into their rations at high inclusion
rates,” said Troy Skarke of the National Sorghum Producers and
USGC Board member. Skarke said last year nine European Union
countries imported U.S. sorghum for the first time, making the
region the United States’ largest sorghum export market. Mexico
imported larger quantities of U.S. corn because of the
competitive price for U.S. sorghum spurred by the new demand
from Europe.
“This year we heard that a lot of feedmills were nervous about
the market and bought feed wheat at a high price,” said Chris
Corry, USGC senior director of international operations for Rest
of the World. “But it is possible Europe will buy U.S. sorghum
in May 2009. This period bodes well for the United States as
Europe would be buying for July, August and September delivery.
By then, the new crop will be in and prices should be reasonable
in the United States.”
U.S. sorghum growers are harvesting or will be shortly, and
early reports indicate success. Chuck McDonald, Texas Grain
Sorghum Producers Board, said the harvest in the Rio Grande
Valley area was not record breaking but above average, despite
natural calamities. McDonald said the majority of sorghum in his
region was harvested in early July.
“The majority of the harvest was very good. We had a very dry
spring down here and a very wet July, which caused some damage
to the crop but not enough to have a devastating impact on
production,” said McDonald. “The hurricanes caused significant
damage to cotton, but thankfully sorghum was harvested prior to
that devastating calamity my fellow Texas farmers and I had to
endure.”
The 2008 USGC Sorghum Mission aimed to capitalize on last year’s
large exports to the region by maintaining relationships within
the market to ensure that Europe remains a reliable buyer of
U.S. sorghum in the future.
The U.S. Grains Council is a private, non-profit partnership
of farmers and agribusinesses committed to building and
expanding international markets for U.S. barley, corn, grain
sorghum and their products. The Council is headquartered in
Washington, D.C., and has nine international offices that
oversee programs in more than 50 countries. Financial support
from our private industry members, including state checkoffs,
agribusinesses, state entities and others, triggers federal
matching funds from the USDA resulting in a combined program
value of more than $26 million. |
|
