World Grain - March 2024 - 42

FEATURE: RECORD-SETTING IPPE
USDA undersecretary
emphasizes diverse market
With US agriculture exports facing strong trade headwinds,
including the strength of the US dollar and increased competition,
market diversification is a priority, said Alexis Taylor,
US Department of Agriculture undersecretary for trade and
foreign agricultural affairs.
Taylor spoke with reporters during the International Production
and Processing Expo (IPPE) in Atlanta, Georgia, US.
While those markets are important, and the USDA will continue
to invest in them, there are new demographic trends
happening.
" We want to encourage market diversification and help
our industry really explore what other markets might open
new opportunities for them, " she said, noting that the USDA
announced in October $1.2 billion in new funding for the Regional
Agricultural Promotion Program.
Some areas where the USDA sees growth opportunities
include Africa, Latin America, the Middle East, South and
Southeast Asia.
There's a lot of untapped market potential in Africa, especially
with the 2019 ratification of the African Continental
Free Trade area.
" That is driving the continent toward a harmonized trade
facilitation regime, " Taylor said. " By 2050, one in four people
on the planet will live on the African continent. "
Southeast Asia is seeing rapid gross domestic product
growth, an expanding middle class, urbanization and increasingly
modern food retail systems.
" What we know is by getting into those markets early, we
can build lifelong consumers of US food and ag products, "
she said.
Some of the oldest US trade agreements are with Latin
America. This region and the United States have a similar value
system around science-based trade and decision-making,
Taylor said.
" Doubling down and investing in that area is going to be
really important going forward, " Taylor said. " While we're
seeing more competition from Latin America, we're also seeing
more competition into Latin America. "
Breaking into new markets can face hurdles, including
health and safety challenges, technical barriers, import licenses,
facility registrations and tariff barriers, she said.
" They kind of run the gamut depending on the market and
the product, " Taylor said.
The USDA works to knock down those barriers by engaging
bilaterally with Foreign Agricultural Service offices across
the world and multilaterally with groups such as the World
Trade Organization. Trade is about the people in the industry,
their priorities and the challenges they are having getting
into the market, Taylor said.
42
equipment hasn't been manufactured at AGI's regional
hub in Brazil, it requires a product transfer from
North America.
The company's 250,000-square-foot
facility
in
Brazil is located four-and-a-half hours from Sáo Paulo
and can manufacture most of AGI's product lines.
" Now it's going to manufacture the feed equipment
as well, " Noam Silberstein, AGI senior vice president,
global feed, told World Grain.
The FLEXmill, a model of which was on display at
IPPE, includes a loop conveyor, hammermill, mixer
and micro dosing station. AGI also can supply the
storage and handling on the receiving end, and the
truck load out.
" We think that not only is it flexible, unique and innovative,
but the fact that we're offering the storage,
handling and processing is unique and innovative, "
Silberstein said.
AGI has seen its feed sales double in the last year.
It focused on the Americas in 2023 and will continue
that into this year.
" It's where we have the most experience, the
history and manufacturing
most
capabilities, "
Silberstein said.
AGI also will begin product transfer to India and
Asia Pacific, which will continue into 2025 as part of
phase two of its feed expansion. Phase three in 2026
will focus on the AMENA region.
" We are seeing a number of opportunities in Africa,
and we've had to accelerate some of the transfer of
knowledge to address this demand, " he said.
Logistics are a consideration for AGI when determining
where equipment will be manufactured and
shipped from, Silberstein said.
" This is where having regional hubs is very helpful
for us, " he said. " For example, if AGI is supplying a
project in Ecuador, maybe it's better to ship from the
US than to try to truck it from Brazil.
" That's the calculation we're able to run. Regional
hubs allow us to have very strong positions where we
can offer engineering, project management, equipment
manufacturing, installation and service, all within
the region. "
Bühler, Inc., Plymouth, Minnesota, US, told World
Grain that customers are looking for sustainability,
energy efficiency and ease of operation.
" You don't have people sticking around 20 to 30
years that have that knowledge, " said Chris Wagner,
sales account
representative-oilseeds, for Bühler.
" You've got to be able to have somebody come in and
be able to operate the equipment. "
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email reprints@sosland.com.
March 2024 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - March 2024

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