September 22, 2011

Taiwan feed millers signed a formal letter on September 20 to purchase 7.7-10.5 million tonnes of US corn and half to three-quarters of a million tonnes of corn co-products in 2012-2013.

"For US farmers, Taiwan is a long-established and deeply valued customer and partner," said US Grains Council (USGC) Past Chairman Terry Vinduska, who signed the letter on behalf of the council in the US Capitol.

"Taiwan is the sixth-largest export market for US agriculture, and our fifth-largest corn market," he noted. "This letter of intent is the latest in Taiwan's unique tradition of goodwill missions to announce its plans. It represents a promise of more than 300 million, maybe as much as 400 million bushels of corn exports."

The value of the Taiwanese corn purchase commitment is estimated to total from US$2.47 to US$3.39 billion.

TFIA Chairman Yau-Kuen Hung represented the Taiwanese association. The delegation, which also included representatives from Taiwan's oilseed processing association and flour millers' association, signed similar letters outlining their intent to purchase three to 3.2 million tonnes (110-118 million bushels) of US soy and 1.7 million tonnes (62 million bushels) of US wheat.

After formal visits in Washington, the delegation will travel to Virginia, Ohio, Indiana, Illinois, Wisconsin and Iowa for meetings with producer groups and state officials.

Taiwan, with the second-highest per capita consumption of US agricultural products in the world, imported 2.4 million tonnes (94 million bushels) of US corn in the 2010-11 market year.