March 19, 2008

US sees higher opportunity in Australian grain market

The US Grains Council (USGC) recently sent a team to Australia and the Philippines to assess the competitiveness of the grain markets in the two countries for the next twelve months.

As Australian grain production has been heavily compromised by drought, the US predicts a high opportunity to export to the country, council president Ken Hobbie, said.

However, due to recent rain in Australia, the country may still post more competition for the US as it will grow more feed wheat and grain sorghum.

The USGC also noted a growing interest for distillers dried grains (DDGS), especially from livestock and feed milling sectors in Australia.

Meanwhile, tariff quotas in the Philippines protect local corn producers and limit grain imports.