Young Mexican Feed Grains Professionals Learn About Value Chain In Mission To Kansas
(MANHATTAN, KS) – The U.S. Grains Council (USGC) has partnered with the Kansas Corn Commission and the Kansas Grain Sorghum Commission to sponsor a trade team of young professionals from Mexico to travel to Kansas to better understand the U.S. grain marketing system and pave the way for continued growth in grain and co-product sales to Mexico.
The team of 10, including swine and poultry producers, feed millers and grain traders, are in the state between June 17 and June 22, and are participating in a two-day grain purchasing short course at Kansas State University.
“Mexico is a long-term, loyal market for U.S. grains, and educating up-and-coming professionals about our industry here will help us continue the good working relationship we’ve had for years,” said new USGC President and CEO Ryan LeGrand, who previously served as the Council’s director in Mexico. “We hope these participants will understand the competitive advantage the U.S. can provide in terms of logistics and pricing.”
Mexico topped all other markets in imports of grain in all forms, with total 2017-2018 marketing year shipments growing 6.3 percent year-over-year to a new record of 25.2 million metric tons (almost 1 billion bushels in corn equivalent). By category, Mexico ranked as the largest buyer of U.S. corn, barley and dried distiller’s grains with solubles (DDGS), with sales in each category increasing from the prior year.
“We were excited to continue hosting young feed grain professionals from Mexico again this year,” said Stacy Mayo-Martinez, Kansas Corn director of industry relations. “Kansas has a special relationship with our corn buyers in Mexico as we are able to deliver high-quality corn via rail. We look forward to working with the next generation of grain buyers for many years to come.”
During their short course, participants will learn about risk management, contracting, negotiating and arbitration, USDA grain standards, futures, derivatives and options, market analysis, supply and demand issues and more before heading out of Manhattan to tour a sorghum farm, a corn farm and an ethanol plant.
Mexican purchases of U.S. ethanol increased 12.8 percent year-over-year to 31.1 million gallons (11 million gallons in corn equivalent) in 2017/2018. In 2017, Mexico expanded the ethanol blending allowance from E5.8 to E10, providing a crucial step for long-term policy and market development. While this policy does not include the three largest cities in Mexico – Mexico City, Guadalajara, and Monterrey – potential market demand still represents nearly 720 million gallons for ethanol.
“In Mexico, we have been pushing to get the trade deal with the U.S. done,” says Israel Anaya, administrative manager of Semillas y Fertilizantes El Geyser, SA de CV, and participant of this trade mission. “We have done our part, the Senate has already passed the deal. I think you as farmers, as part of the chain, you have to also get involved, not just see what happens. Let’s make it happen.”
The trade team will round out its visit in Kansas City with a tour of the Federal Grain Inspection Service’s National Grain Center and meet with U.S. grain industry executives before returning to Mexico.
For more information on the U.S. Grains Council’s work in Mexico, please visit https://grains.org/news-events/newsroom/#country=21.