U.S. Grains Council Strives To Rejuvenate Sorghum Exports To Mexico

Mexico's sorghum imports have been hindered over the last several years, but unexpected changes in the global marketplace and ongoing efforts of the Council and its members have turned this market around, nearly returning to its previous robust levels. In the 2007/2008 marketing year, Mexico imported 1.07 million metric tons (42 million bushels) of U.S. sorghum compared to almost 2 million tons (79 million bushels) the previous year and more than 3 million tons (118 million bushels) the year before that. So far this marketing year, Mexico imported approximately 1.4 million tons (55 million bushels) up 952,000 tons (37.5 million bushels) from the same time period the previous year, indicating U.S. sorghum promotional efforts are working.

"This is the fourth time we have hosted Mexican buyers in Texas since December 2008," said Kristin Heinemann, director of producer relations for Texas Grain Sorghum Producers. "These missions have definitely had a positive impact on improving relationships and identifying the current barriers that exist in U.S., Mexico trade. The United States has a long history with Mexico and a lot of relationships between buyers and sellers already exist. But in light of the reduction of trade that has happened in the past few years, a rejuvenation of these relationships is important."

Participants traveled to Texas and Kansas to learn more about the logistics of transporting sorghum into Mexico, which seems to be the biggest current market barrier. Manuel Chavez, USGC consultant who accompanied the team, expressed the importance for this group in particular to see firsthand the movement of grain from the Central United States to Gulf ports to then be loaded into vessels and shipped to Central Mexico.

"Some of the participants are new to the industry. They were very thankful for invitation as they learned a lot about how U.S. grain is handled. They now feel more confident in the U.S. grain inspection and shipping process and are eager to share the possibilities and opportunities of importing U.S. grains with their industry partners," said Chavez.

"Overall, I think this trip built a base of knowledge for all of us to establish and continue strong contacts and relationships. It also helps to identify potential business opportunities between U.S. grain farmers and elevators and Mexican livestock agribusiness," said Shelee Padgett, member services director for National Sorghum Producers, who also accompanied the team.

Source: U.S. Grains Council