July 12, 2006

Producer groups see promise in corn exports to China, Vietnam

Both Vietnam and China are promising markets for US corn exporters, representatives of the US Grains Council (USCG) and National Corn Growers Association (NCGA) said after an 11-day fact-finding mission.

In Vietnam and China, the representatives analysed the market for US feed grains and co-products like dried distillers' grains (DDGs).

NCGA President Gerald Tumbleson and First Vice President Ken McCauley both said they saw the potential of markets for DDGs in Vietnam and for corn in China.

Tumbleson said the fledgling pork industry in Vietnam provides a good opportunity for the export of DDGs into its market.

McCauley stressed US suppliers would have to work with pork producers to explain the composition of DDGs and the process it has been through.

Both Tumbleson and McCauley said Vietnam's ports would be able to handle containers from US ships.

They also confirmed the trend shift in China that it is morphing from a corn exporter to that of a corn importer. Tumbleson attributes the trend to the small-scale farming present throughout China and the absence of biotechnology used in farms. Both factors resulted in its corn producers' failure to supply the massive quantities the industry needs, Tumbleson said.

Tumbleson said China's social programmes pay farmers to remain in the countryside, thus limiting the amount of corn the country can produce. However, at the same time, the country's processing capability is expanding rapidly and needs much greater quantities to supply their needs.