The U.S. Grains Council recently conducted a roadshow in Mexico to promote better business relationships between sorghum importers and U.S. grain cooperatives and offer potential buyers the latest information about this year's sorghum crop.
“The tour allowed us to meet buyers face to face,” said Manuel Sanchez, USGC manager of global trade. “It’s important that we develop these relationships across the country to ensure sorghum’s continued adoption.”
As the top importer of U.S. corn and barley and second largest importer of distiller's dried grains with solubles (DDGS), Mexico is an important market for U.S. feed grain exports. With the poultry, swine, dairy and beef industries continuing to grow consistently, the chance for end-users to learn more about sorghum and its applications has the potential to increase development in these industries.
Stops on the roadshow included visits to potential customers in Monterrey, Laredo, Guadalajara and Merida, where representatives showed and shared details about sorghum, current crop conditions and buying considerations.
From feed mills to poultry producers, dairies to swine producers, the roadshow was an opportunity to show a diverse cross-section of end-users just how important quality is to U.S. producers.
“Sorghum is gaining traction for its use in feed,” Sanchez said. “Energy reforms also present a unique opportunity for sorghum to be used in ethanol production, as well, especially with the recent price drops.”
In 2015, Pemex, Mexico's state-owned petroleum company, announced its plan to introduce a pilot program that would blend gasoline with ethanol. The resulting boom in ethanol interest gave USGC the opportunity to lead conversations around additional applications of U.S. sorghum, drawing further interest to the grain.
Last week, the Energy Regulatory Commission of Mexico approved a regulation that would allow for the blending and sale of up to 5.8% ethanol in the nation’s fuel supply outside of the three major metropolitan areas of Mexico City, Guadalajara and Monterrey.
Source: U.S. Grains Council