September 24, 2007

EU turns to sorghum over feed shortfall

Tight domestic grain supplies in EU will have the region increase its sorghum imports from the US, according to Chris Corry, US Grains Council (USGC) director of international operations on September 20.

Drought and continuous flooding in Europe as well as depleting stocks of wheat and barley have contributed to the feed shortage, says Corry.

He added that Europe had minimal feed grains in storage due to a poor harvest last year, also on adverse weather. Given the current market situation, Corry said Europe has turned to US sorghum as an alternative feed source. About 25.4 million bushels (646,000 tonnes) of US sorghum has been traded to Europe with France as the largest buyer within the last three weeks.

Corry said France has purchased an astounding 3.25 million bushels (82,500 tonnes) of sorghum, adding that Ireland, Italy, Netherlands and Spain were also purchasers. Spain has imported 14.8 million bushels (376,500 tonnes) of US sorghum and has been an importer of the grain for some time.

He said that USGC consultants will be in Europe assessing the market situation and the extent of the crop damages and identifying opportunities and constraints. Early reports suggest France may need up to 1 million tonnes of corn and sorghum and is looking to source these grains from the United Stated, Brazil and Argentina. However, Brazil and Argentina will not harvest the current corn crop until April, leaving US sorghum as the most likely source, due to biotechnology restraints. Gretchen Flanley, USGC director of biotechnology programs, said the tight supplies and high feed costs in the European Union have led the agricultural industry to call for a faster regulatory process.