December 19, 2011

Vietnam seen as a potential country in corn market

Vietnam became the 15th largest market for US agricultural products, making itself as a potential country in the market.

US agricultural exports to Vietnam grew fivefold from a mere US$216 million in 2006 to US$1.3 billion in 2010. Vietnam is the 8th largest market for US feedstuffs, doubling over the past two years and valued at US$151 million in 2010.

"The drastically changing consumer habits will increase grain demand in Viet Nam. We need to continue to educate Vietnamese buyers and farmers on benefits of buying from the US," said Pat Feldpausch, mission participant and president of the corn Marketing Programme of Michigan. "The US has a dependable system that provides transparency and risk management. We are a consistent supplier and buyers get better value for their purchases. Buying corn from nearby countries or from Ukraine is a risk. You may get a bargain but it's a gamble."

The group had the opportunity to see a Council program in action at the local feed mill where USGC Consultant Dr Budi Tangendjaja was conducting a seminar on the use and application of US distiller's dried grains with solubles (DDGS).

Paul Herringshaw, mission participant and vice chairman of the Ohio Corn Marketing Programme, said, "Vietnam has agile users of US DDGS. It's a good product that helps every diet. It's a great way to move protein at lower moisture, and it's replacing Indian soybean meal and other competitive ingredients. We need to continue market education to increase the product moving into the country."