November 15, 2007

US grain reps court barley export orders from Japan

 

 

The US Grains Council's Barley Mission was in Japan last week to explore new opportunities for US barley and address buyers' supply concerns, according to a press release on their website.

 

According to USDA figures, Japan imported 355,500 tonnes (16.3 million bushels) of US barley in 2006/07.

 

The next food barley tender for 14,900 tonnes (684,351 bushels) is scheduled for Nov. 29 and the next feed barley tender is expected in early December.

 

"The direct dialogue and update on food barley varieties and products is extremely important for our number one export customer," said Dan Mader, Idaho Barley Commission

 

"We let them know that if they are interested in food barley, the US is a potential source and we are willing to work to make our products fit their market."Mader said.

 

The team has met with Japan Food Barley Council, Hakubaku Company, Ltd. and Grain Importers Association, as well as the Ministry of Agriculture, Forestry and Fisheries (MAFF).

 

"These meetings were good opportunities to hear from industry and government about a variety of issues affecting the barley industry as well as the potential that exists for US food barley exports to Japan," said Kim Karst, manager of international operations.

 

The Council also hosted a seminar for approximately 80 people representing Japan's food and feed barley industry.

 

The strong turnout illustrates the concern in Japan regarding the world barley supply, according to Cary Sifferath, USGC senior director in Japan.

 

To address those concerns, Tim Potter of CHS, Inc. gave a presentation on barley supply and demand, explaining the tight US barley supply situation as higher-than expected exports draw down US stocks.

 

Potter predicted world total exports will be between 14.4-14.5 million tonnes (661.3-665.9 million bushels), 500,000 tonnes (22.9 million bushels) lower than USDA estimates.

 

Mission members also met members of the Japan Feed Manufactures Association and Zennoh, the two largest feed barley importers in Japan.

 

"Both Zennoh and Japan Feed Manufactures Associations have purchased significant amounts of US barley in the last two SBS feed barley tenders and we expect them to be large buyers of US barley in the SBS tender in early December," said Sifferath.

 

"The timing of this mission is important. Council members have been able to talk directly to the Japanese buyers' concerns, showing how much the US grain industry values our relationship with them."