U.S. Sorghum Going to Canada

Sale presents possibility of further opportunities.

The U.S. Grains Council has organized the sale of four railcars of South Dakota sorghum to Canada. The sale of approximately 360 metric tons was finalized last week. Dan Keefe, USGC manager of international operations for dried distillers grains, said this sale was not about quantity but more so about opportunity.

"This is the initial step in getting greater quantities of U.S. grain sorghum to our northern neighbors," Keefe said. "Realistically, this is a small amount of sorghum but it is a great beginning."
Keefe said U.S. sorghum has strong potential for growth in the Canada's marketplace due to its competitive price to local wheat and barley. Exporting sorghum, according to Keefe, is profitable for U.S. farmers; in the case of this transaction, the sorghum was priced higher than it was in South Dakota.

"The deal is finalized and the sorghum is set for a March delivery," said Jamie Williams, merchandiser for the Furst-McNess Company, which handled the logistics of the agreement. "This sorghum will be used primarily as bird feed but will also be used for livestock. I'm hoping this is a sign of good things to come for U.S. sorghum growers."

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