US losing market share for grains in Colombia

The US is losing market share in Colombia for corn, wheat and soy because of an unratified US-Colombia Trade Promotion Agreement (CTPA), the US Grains Council (USGC) announced on March 18.

Rick Fruth, USGC chairman, lead a team of 10 USGC officers, board members and staff on a mission to evaluate grain market opportunities in the Caribbean and Latin American regions. The delegation spent a week meeting with government officials, customers and industry experts in the Dominican Republic, Colombia and Panama, according to USGC. Fruth said the mission was well received by feed grain end-users and potential customers in the region. However, he expressed shock at the scope of lost grain business and trade in Colombia due to the lack of a CTPA.

"I was stunned at the volume and value of lost corn sales to Colombia from 2008-2009," said Wendell Shauman, USGC treasurer and Illinois corn farmer. "Not only did we deprive US corn growers of almost US$314 million in corn sales, but the impact on our barley and sorghum members, and our wheat and soy colleagues, was equally stark with additional losses of between US$200 and US$300 million."

Thomas C. Dorr, USGC president and chief executive officer, said that the absence of a signed free trade agreement in Colombia is threatening US trade with other countries in the region. For example, the Dominican Republic, where the US typically holds a 100% market share, imported a shipment of corn and soymeal from South America in 2009.

"The longer the US Administration waits to pass this agreement, the more US markets will diminish, resulting in a lower bottom line for US producers," Dorr said. "The question remains as to the Administration's perception of urgency, when CTPA will be signed, and at what social and market consequences to our Latin American friends and farmer members."