Possible New, Increased Markets for U.S. Sorghum in Taiwan, Japan
USGC -- November 11, 2009 -- Alvaro Cordero, USGC manager of international operations for marketing, traveled to Taiwan and Japan last week to assess the market potential for U.S. grain sorghum. Cordero said increased opportunities for U.S. sorghum exist in Taiwan and Japan both in the food and feed industry, but there will need to be strategic marketing consideration for leverage over competing sources. Japan, the largest feed grains export market for the United States, imports approximately 19 to 20 million metric tons of feed grains a year. In 2008, the United States secured a 90 percent market share, a slight increase from the 87 percent market share it had in 2007.PAID ADVERTISEMENT
“Japan is increasingly becoming more price sensitive and is sourcing from other origins. We need to reeducate end-users on the quality of U.S. sorghum and its benefits in relation to price and bottom lines,” he said, adding that there is also interest in incorporating sorghum within the food industry. “While Japan already uses sorghum in food, both countries seek factual research for food product development to increase their current usage. The China Grain Products Research and Development Institute in Taiwan is set up for such research and allows for a better introduction of the product. They conduct trainings for food and restaurant chain industries to introduce new recipes and better blending techniques.”
Due to limited natural resources, Taiwan depends heavily on foreign trade. U.S. agricultural products account for more than 30 percent of Taiwan’s agricultural import demand. U.S. agricultural exports total about $3.5 billion annually, making Taiwan the United States’ sixth-largest agricultural export market.
“Taiwanese feed manufacturers are not currently using sorghum in their rations. There is a lack of actual virtues of sorghum as both an energy source and protein provider. There is still the belief that tannin causes digestibility problems, which is untrue, and it is almost new news to the marketplace that U.S. sorghum is tannin free. There is initial interest from the Taiwan Feedmillers Association to run trials for consideration of future imports,” said Cordero, adding Taiwan has an extensive Livestock Research Institute with well-established stations around the country capable of assisting and advising on the analysis of sorghum in their rations.
USGC Director in Taiwan Clover Chang said, “The young generation of nutritionists in Taiwan have no experience in using grain sorghum. We have to educate them on the characteristics and advantages of U.S. grain sorghum. Due to the proximity of other competitive sources, the Council’s Taiwan office will provide timely market information on the production, supply and demand, inspection, shipment, applications, etc., of U.S. grain sorghum and co-products in order to show local traders the quality of U.S. sorghum compared to competitors. We will also demonstrate the United States’ ability to meet demand both domestically and worldwide.”
EXCERPTED FROM THE USGC’S GLOBAL UPDATE NEWSLETTER BY PERMISSION OF USGC
U.S. Grains Council, 1400 K Street, NW, Suite 1200, Washington, DC 20005, phone: (202) 789-0789, fax: (202) 898-0522, web site: www.grains.org, e-mail: grains@grains.org
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