June 8, 2007

Taiwan signs agreement to buy 10 million tonnes of US corn

Taiwan would be purchasing 7.5 to 10 million tonnes of corn from the US over 2008 and 2009.

The Taiwanese Agricultural Goodwill Mission has signed a letter of intent with the US Grains Council committing to purchase 7.5 to 10 million tonnes, or 295 to 394 million bushels, of US corn in 2008 and 2009.

The agreement is part of a longtime partnership between the Council and Taiwan, according to USGC Chairman Vic Miller.

Taiwan has imported more than 40 million tonnes of US corn since 1998, worth more than US$4 billion, said Miller.

Miller noted that Taiwan has grown to become one of the largest customers of US grains, importing nearly 4.5 million tonnes of US feed grains last year,

Taiwan imports 96 percent of its feed grains from the US. In recent years, it has also expanded its range of grains from corn and sorghum to barley and DDGS.

Miller said the long-lasting partnership with Taiwan and other trading partners has supported much of US agriculture.

Miller said that currently, one in three acres planted in the US was for export and exports now account for a quarter of farm income.