Grainnet

Top leaders of Korea’s largest feed manufacturers and buyers of U.S. feed ingredients are in the United States to review the U.S. corn supply and demand in view of increasing demand from the U.S. ethanol industry.

The high-level team is working with their longtime partner, the U.S. Grains Council, to acquire intelligence regarding corn supply, marketing and export systems.

“We are honored to host this group of reliable buyers of U.S. feed ingredients.

"We have been working with them since 1972 to assure them of the ability of U.S. farmers to meet all demands,” said Ken Hobbie, USGC president and CEO.

“The influential leaders of buying groups will become even more convinced of U.S. agriculture’s ability to reliably supply sufficient amounts of high-quality corn to meet the demands of both U.S. ethanol and Korea.” Byong Ryol Min, USGC director is Korea, said.

“The largest buyers of U.S. corn in Korea will see firsthand the advantages of U.S. feed ingredients and will likely give priority considerations to U.S. corn when making corn buying decisions.”

The Korea Feed Association (KFA), is a trade organization consisting of 42 feed milling companies.

KFA utilizes a total 5.5 million metric tons of feed ingredients with 97 percent being imported in 2008, including 4.6 million tons of corn, all of which was imported.

Corn and distiller’s dried grains with solubles (DDGS) are the top ingredients KFA imports from the United States.

Min said KFA imports more than half of the total feed grains that go into Korea and Nonghyup Feed Inc. (NOFI), also participating in the fact-finding mission, imports more than 30 percent.

Chairman of KFA Nam Jo Cho said importing feed grains has been challenging due to the global economic crisis and the exchange rate.

Cho said Korea is fortunate to have export credit guarantees from USDA.

“The GSM-102 program has allowed us to purchase feed ingredients for our customers and also secures demand for U.S. grains.

"I am so thankful for this program and the Council’s support,” said Cho.

Producing less than 3 percent of the total domestic demand, Korea has historically been the world’s second or third-largest feed grains import market.

Korea’s grain imports are reached at 10.6 million tons in 2008, compared with the previous five year average of 10.5 million tons.

Korea’s corn imports represented 85 percent of the total, standing at 9 million tons.

The U.S. share in the Korean feed grains and substitutes import market was 81 percent in 2008, the highest in 20 years, according to Min.

The U.S. market share in the corn import market was 94 percent (96 percent for feed use and 86 percent for food and industrial use) in 2008.

For more information, call 202-789-0789.

See Related Websites/Articles:

• U.S. Grains Council

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