Missouri Ag Connection - USGC Chair: Mexican Buyers Need Supportive Farmer Voices

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USGC Chair: Mexican Buyers Need Supportive Farmer Voices
Missouri Ag Connection - 04/25/2017

U.S. grain farmers are voicing their support and appreciation for trade with Mexico, a message U.S. Grains Council (USGC) Chairman and Maryland farmer Chip Councell carried with him when he traveled to meet with Mexican buyers.

"If you look at the logistics of Mexico, no other country can replace it as a customer for U.S. grain," Councell said recently to the National Association of Farm Broadcasting about the mission. "The logistics by rail, truck and boat give the United States such a huge advantage."

Councell and USGC President and CEO Tom Sleight, accompanied by USGC Mexico Director Ryan LeGrand and Assistant Director Heidi Bringenberg, offered reassurance about U.S. grain producers' dedication to customers in Mexico, who in turn expressed serious concerns about the state of trade relations between the two countries.

"Quite honestly, they are a little bit confused and they are pretty upset," Councell said. "They have always depended on the United States to be a reliable supplier of quality grain at competitive prices, and they are in question about that now from the noise they are hearing."

Councell described the "Plan B" Mexican buyers are considering, referring to the growing examinations of sourcing options from Brazil and Argentina. The U.S. and Mexican agriculture industries are increasingly integrated, thanks in large part to favorable geographical and logistical advantages built since the North American Free Trade Agreement (NAFTA) came into effect. Mexico is now the largest market for U.S. corn, with 523.6 million bushels of imports in 2015/2016, as well as the top buyer of U.S. barley in 2015/2016. Mexico was also the second largest customer for U.S. DDGS and sorghum in 2015/2016.

"I think it is extremely important that our friends in Mexico know that U.S. producers are advocating for agriculture," Councell said. "USGC has been working in Mexico for over 35 years to help them build their industry, and it is too important to ignore."

Seeing the potential in Mexico, the Missouri Corn Merchandising Council (MCMC) has made significant investments through the U.S. Grains Council. These investments are helping fund staff time on the ground to continue expanding this market for U.S. ethanol, corn and ethanol co-products. There are positive signs we are close to making Mexico a major buyer of corn-based ethanol.

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