US grain exports to see further challenges this year

US organisations that focus on increasing grain exports will see further challenges this year after record shipments in 2008, according to a grain industry official.

This year's global market dynamics pose substantial challenges regarding exports, said Shannon Schaffer, director of membership for the US Grains Council (USGC).

Last year, the US exported 59.9 million tonnes of corn and 6.1 million tonnes of sorghum. However, the USDA placed fiscal 2009 coarse grain exports at 51.6 million tonnes, nearly 17 million tonnes from 2008.

Due to tough competition in world markets, the hands-on international market development for US agricultural products offered by organisations such as USGC will be more important this year, said Schaffer.

The USGC will work with livestock and poultry industries overseas to expand capacity and increase the need for feed ingredients, said Schaffer.

The US will be facing a tough competition from the abundant and cheap supply of feed wheat from Russia, the EU and Ukraine this year. In response, Schaffer said the USGC will focus on marketing the distillers' grains (DDGS), a byproduct of ethanol, this year.

The USGC sees the DDGS as an ingredient most likely to compete with feed wheat from a price perspective, and the US will work to secure the presence of US corn, sorghum, barley and their co-products in the global markets, according to Schaffer.