Market opportunities for U.S. coarse grains and co-products such as distillers dried grains are likely to expand significantly faster than previously anticipated, according to an article by the U.S. Grains Council (http://bit.ly/…).
The Council recently released its Outlook Colombia 2030 report which revealed faster market growth than historical trends suggested.
According to Council President and CEO Tom Sleight, the report showed a bullish potential for U.S. feed grain and DDG exports to Colombia. Colombia's corn imports alone are projected to reach 5.5 million metric tons in 2020 and 7.8 mmt by 2030.
Sleight said the bullish outlook is due largely to increased meat consumption from the country's middle class. That increase in meat demand will force Colombia's livestock industry to increase production by more than 50% from the country's 2014 production. With little growth in Colombia's crop production, livestock producers will need to rely largely on feed imports to support expansion.
The Council has been working in Colombia more than 25 years in efforts to build demand from the country's poultry and swine industries. The U.S. faces strong competition from countries such as Brazil, Paraguay, Uruguay and Venezuela. Argentina will also be a strong competitor because of its recent elimination of export taxes on agricultural commodities.
However, the U.S. has an advantage of the free trade agreement with Colombia which has resulted in increased exports there. The Council hopes to maintain and expand the country's demand for U.S. coarse grains and co-products.
Cheryl Anderson can be reached at Cheryl.email@example.com
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.