September 7, 2007

US feed grain exports seen at record US$24 billion

Growing demand for US feed grains is seen to reach US$24.3 billion in 2008 due to expected hike on agricultural exports this year and the next.

The US Department of Agriculture (USDA) reports that US agricultural exports are seen to reach US$79 billion this year, surpassing last year's US$68.6 billion, and may increase to US$83.5 billion in 2008. These factors have upped estimates for feed grains, according to US Grain Council (USGC) president and CEO Ken Hobbie.

According to Kirk Miller, general sales manager of USDA's Foreign Agricultural Service (FAS), many facets contributed to USDA's most recent forecasts for US agricultural exports. 

Miller said their competitors are facing natural calamities have reduced crop size, thus, increasing US grains entry to importing countries.

Hobbie said the heightened demand for US feed grains also contributed greatly to the USDA's forecasts. Corn exports alone are expected to reach US$9.3 billion in 2008, accounting for 11 percent of the total value of US agricultural exports. He also said with increasing corn prices, demand for barley and sorghum is growing as trade partners search for feed alternatives. Sorghum exports are expected to rise by US$200 million.

Kevin Natz, USGC director of trade policy said recently signed free trade agreements will open many doors for US farmers to very important markets, thus fuelling demand. 

If Congress approves free trade agreements with the Andean countries of Peru, Colombia and Panama, the US will ultimately have free trade for US feed grains with over two-thirds of the population in the Western Hemisphere, said Natz. The pending agreement with South Korea also stands to greatly benefit US agriculture, he said.