Indiana Hosts Korean Corn Buying Team to Examine U.S. Corn Production
INDIANAPOLIS, Ind. (Oct. 28, 2015) — A U.S. Grains Council (USGC) trade team of Korean corn buyers traveled to Indiana recently as part of a learning journey to the United States to get in-depth information about the U.S. grain supply chain from production to market.
Korea is a reliable, long-term buyer of U.S. corn, coming in as the fourth largest importer of the commodity in the marketing year that ran Sept. 1, 2014 to Aug. 31, 2015. The Council works to sustain the partnerships with Korean buyers that have served both nations well for many years while also remaining aware that Korea is a highly sophisticated market with the ability to diversify sourcing and reformulate rations in response to pricing.
“We want to maintain our relationship with this important buying country,” said USGC Chairman Alan Tiemann, who farms in Nebraska. “The Council and its partners, like Indiana, will continue to act as the bridge between Korean grain buyers and U.S. farmers and agribusinesses through trade teams like this one, targeted customer servicing efforts and other USGC-directed programs.”
The goal of this team’s visit to Indiana is for the Korean participants to gain a deeper understanding of the U.S. grain export value-chain and to learn how U.S. corn is produced, graded and marketed.
“We believe that by seeing the U.S. corn value-chain firsthand, the confidence of our Korean customers in the U.S. grain export system will be reinforced, and team participants will have a better understanding of the advantages of buying U.S. coarse grains and co-products,” Tiemann said.
Indiana Corn Marketing Council (ICMC) hosted the group Oct. 27-28 during their time in the state. The group also visited New Orleans, Ohio and Chicago. The itinerary included stops at corn farms, country elevators, river terminal elevators, export terminal facilities, grain trading houses, ethanol plants, a biotechnology company and more.
ICMC is an active member of the Council, a private, non-profit organization that works to develop exports in more than 50 countries from 10 worldwide offices and its Washington, D.C., headquarters.
Facts about Korea’s Demand for Coarse Grains:
- Producing very little feed grains domestically, Korea has regularly been the world’s No. 3 or No. 4 coarse grains import market. Korea produces only about 0.2 million metric tons of coarse grains but consumes 12.3 million tons a year. Of the total consumption, 78 percent or 9.6 million tons is used for animal feed, 16 percent for corn milling and 6 percent for beverage alcohol production and others.
- Korea’s coarse grains imports have ranged from between 10.2 million tons and 12.8 million tons in the last decade. Corn has dominated the Korean coarse grains import market, accounting for 65 to 85 percent of the total volume depending on the price and availability.
- Click here for a market profile of Korea.