World Grain - October 2011 - (Page 64)

FEATURE China W ith many analysts speculating that China will significantly increase corn imports in the coming years, the world’s major corn producers are looking to position themselves to become the supplier of choice for that lucrative market. The United States, which by a large margin is the world’s top corn producer and exporter, has been working on strengthening its trade relationship with the world’s most populous country. “We just had a couple of powerful regulators from China here for a couple of weeks to show them the complete integration of the U.S grain system. I think it was a revelation to them and should give them some confidence in us,” Wendell Shauman, chairman of the U.S. Grains Council (USGC), told World Grain on Aug. 31 at the 2011 Farm Progress Show in Decatur, Illinois, U.S. “We are certainly working hard to build our relationship with them.” He said the U.S. has several advantages over other potential corn exporters, such as Argentina, including a logistical edge in regards to shipping. “It is a shorter distance for us to deliver the corn to China and therefore the shipping expenses should be lower,” said Shauman, also noting that the U.S. has a good track record in terms of being a reliable supplier. “One of the questions we get from any country that’s going to be importing our product is: ‘Are you going to be a reliable supplier?’” he said. “Look at what happened to Russia last year when they had to shut off their wheat. Those types of things can have repercussions for years.” The U.S. Department of Agriculture (USDA) forecasts China to import 2 million tonnes of corn in 2011-12, up from 1.5 million in 2010-11, 1.2 million in 2009-10 and 47,000 tonnes in 2008-09. Shauman said that because of the growth in China’s middle class, which can now afford to consume more meat products, 64 A battle for by Arvin Donley USGC President says U.S. looking to export more corn to China in the coming years he believes it’s inevitable that the country will become a significantly larger corn importer in the near future. He recalled a conversation he had with a Chinese farmer five years ago in which the man said, “Last year I could afford to eat meat three times a month and this year I can only eat meat once a month.” “It’s the way he measured wealth,” Shauman said. “If he can now eat meat five times a month, look at the increased market you’ve got with 300 million people now in the middle class.” Shauman said the USGC sees other opportunities for increased corn imports in that region of the world. “The Southeast Asia market is not nearly the opportunity that China is, but it is a rapidly growing economy and a market that’s going to develop,” he said. “India is potentially a huge market. It’s a lot like China was. We had worked with China for 30 years before we finally got a market, and I hope it’s not going to take 30 years to get the market in India.” Like China, India has a growing population with a high gross domestic product. “It has a rapidly growing middle class society that’s going to eat better, and there’s a pretty significant number in that population that will eat meat,” Shauman said. FTA AND DOHA DISAPPOINTMENT While there’s increased optimism about making inroads October 2011 / World Grain /

Table of Contents for the Digital Edition of World Grain - October 2011

World Grain - October 2011
Grain’s influence on global population trends
News review
Focus on Turkey
In it for the long haul
Deregulation shapes shipping market in Australia
Port developments
News Roundup
Thai rice plan controversial
A growing force in corn
Is biotech blooming in Europe?
A battle for China
Marketing maneuvers
Biofuels News Review
A new imaging method for millers
U.S. soy crushers face challenges
IAOM Eurasia
Flour trade prospects improve
Ridding your facility of rodents
Intersystems expanding Omaha facility
OCRIM school educates millers from around the world
Perten Instruments acquires TexVol Instruments
Food Protection Alliance names Schmitz as director
SternMaid to participate in Food Ingredients Europe
Insta-Pro International names Latin American sales manager
Alltech realigns leadership team
Advertiser Index

World Grain - October 2011