Grainnet

This article is reprinted from the U.S. Grain Council August 21 Global Update.

The U.S. Grains Council’s 2008 Corn Mission is getting a firsthand look at three very different markets for U.S. grains and co-products in Asia.

Six mission participants from corn checkoff boards are visiting Vietnam, a developing market; Indonesia, an emerging market; and Taiwan, a mature market; on the two week trip. The first stop was Vietnam.

While in the country, one specific opportunity for U.S. exports that caught the team’s attention was distiller’s dried grains with solubles (DDGS) for aquaculture.

“DDGS is proving to be of extreme benefit, especially to aquaculture farms raising tilapia and catfish,” said Kevin Rempp of the Iowa Corn Promotion Board.

“It has been a very positive development and is expected to be even greater in the future.”

In fact, Vietnamese aquaculture could represent as much as 200 million tons of DDGS demand in the future, according to Mike Callahan, USGC director of international operations – Asia, who is accompanying the mission participants.

However, reaching the full potential of this demand will require additional work on the part of the Council.

There is a belief among catfish farmers that adding DDGS to fish rations could cause catfish flesh to turn yellow – a serious problem since a significant premium is paid for white flesh.

The Council has conducted tilapia feeding trials with DDGS inclusion rates of up to 15 percent with no yellowing, but such results don’t automatically calm local skeptics.

“If you do the trial and prove the results, that can convince those directly involved with the project, but not necessarily other farmers and feed millers,” said Adel Yusupov, director of USGC’s Southeast Asia office.

The Council plans to conduct DDGS feeding trials with catfish in the near future.

Another challenge to increasing the purchases of U.S. corn and DDGS that mission participants identified was the lack of available credit.

While there is no direct action the Council can take to address this issue, it is working with the U.S. Department of Agriculture to explore the possibility of opening a program in the region which would allow for government guaranteed financing.

Overall, the mission has allowed the Council’s producer members to see the value of its programs firsthand.

“As a corn grower, I am encouraged by the relationships the U.S. Grains Council has established as a basis of trade and future market share for my corn,” said Bill Christ of the Illinois Corn Marketing Board.

“The Vietnam market is emerging as a market with great potential for U.S. corn and DDGS.”

Mission participants are: Dave Nielsen of the Nebraska Corn Board; William Christ of the Illinois Corn Marketing Board; Keith Finney of the North Dakota Corn Utilization Council; Kevin Rempp of the Iowa Corn Promotion Board; Robert Garber of the South Dakota Corn Utilization Council; and Mike Richardson of the Arkansas Corn & Grain Sorghum Board.

Mike Callahan, USGC director of international operations — Asia, and Shannon Schaffer, USGC director of membership are accompanying the team along with overseas staff in the markets visited.

For more information, call 202-789-0789.

See Related Websites/Articles:

• The Global Update from the U.S Grains Council

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