October 21, 2013

China receives first shipment of US sorghum for feed use

China's Guangzhou port received the country's first bulk shipment of US sorghum for feed use on October 18, marking a significant day for US sorghum exporters.

The shipment totalled 60,000 tonnes (2.36 million bushels) of sorghum designated for animal feed use.

US Grains Council (USCG) staff, representatives of buyers and sellers, port officials and a US government representative were on the scene to witness the historical event, celebrating another milestone in the growing US-China agricultural trade relationship.

"China's sophisticated feed industry has the capacity to explore different feed ingredients and evaluate their effectiveness in a highly competitive environment," said Bryan Lohmar, USGC director in China. "The Council believes US sorghum has significant potential to become a regular feed ingredient in China. Sorghum imports from the US can help keep food prices low and improve China's overall food security."

"As of this month, there are approximately 20 Panamax vessels of US sorghum to China, which represents around 1.1 to 1.2 million tonnes (43.3 to 47.2 million bushels)," said Alvaro Cordero, USGC manager of global trade. "Traders estimate that the 2013/14 crop year should register sales of 1.6 million tonnes (63 million bushels) or more."

"With China's meat consumption growing and subsequent growth in feed demand, the US is in a unique position, both in its capacity to produce and its variety of products, to respond and meet China's feed grain needs," said Julius Schaaf, USGC chairman.

China's tariff-rate quota restricts on corn imports, but has in turn provided an opportunity for US sorghum export to the country. In September, US Grains Council and the United Sorghum Checkoff Programme provided technical seminars in China to help the industry understand the nutritional value of sorghum.