SIOUX FALLS, S.D. — U.S. sorghum exports are drawing steady interest overseas as buyers expand beyond longstanding destinations, according to industry representatives.
“Our No. 1 trade partner over the years has been China,” said Amy France, chairwoman of National Sorghum Producers.
The United States ships 50% to 70% of its sorghum crop abroad, and China takes 70% to 90% of those volumes. Other consistent outlets are also in play.
“Mexico has been a longtime trading partner,” said France, who spoke at the Midwest Agriculture Export Summit in Sioux Falls on Aug. 12. “New doors have opened in Vietnam, Malaysia. So we continue to look at relationships we can build and opportunities for our producers. I would be remiss to not mention India and the potential there.”
Sorghum’s non-GMO status is a selling point for several international buyers.
“When we’re talking international buyers, that is a key element that sorghum is kind of a shining commodity for,” France said.
Demand is supported by varied end uses, which differ by country.
“In China it was an alcohol called Baijiu, as well as their pork sector. Vietnam, it would be their aquaculture, and in Malaysia we’re beginning those conversations,” France said. “India would be supplying feed for the poultry sector as we see a demand in that and an increase in their ethanol production where corn is going, sorghum really comes in and can help in that area with feeding the poultry.”
U.S. acreage has edged higher.
“What we’re seeing that drive come from is the input costs. Sorghum uses significantly less inputs, as well as water, so one-third less than other commodities,” France said.
France noted headwinds tied to weather and planting patterns globally, which can cloud market signals.
“They are looking for market signals, there’s no question about it. So we’re working very diligently to open those other international trade partners,” she said.
U.S. sorghum exports and ethanol policy
Ethanol remains a critical outlet for sorghum, she added.
“E15 would move bushels immediately, so that’s another thing. Also 45Z is very important to the markets. That tax credit would go to ethanol plants and then pass down to our producers,” France said. “So we’ve got a lot of irons in the fire and a lot of things that could make our market move. But we need some movement ourselves to get those reflections in the market.”
Sorghum also features in Food for Peace, a longstanding U.S. foreign assistance program.
“Many times we have excess grain and those conversations: ‘What do we do with this?’, ‘How can we benefit not only our producers by moving those bushels but also those around the work that need food?’ So, we’re also very strong advocates of using U.S. commodities. We truly believe there is no other commodity better in the world than our U.S. grown sorghum and so that just utilizes the excess that we make and do best, but also helping those others,” France said. “So, at one time that was slowed down a bit, but now we’ve seen that pick up, and we did our first shipment move out of actually western Kansas, where I’m from, into the African ports.”
France said the outlook is positive.
“This administration has opened some new doors for us and one thing that’s extremely important always has been, always will be the Food for Peace aspect. So, that’s 3-5% percent of our sorghum export goes to that and those western Africa countries. So we’re excited to see those movements begin again and those conversations. We’re absolutely looking for that permanent home at USDA,” France said. “Sorghum has always been on the map and building those relationships to see what doors open in our future.”
She expects acres to grow, particularly across the Great Plains, as domestic uses expand.
“I do, absolutely. You know, oftentimes people don’t know that sorghum is used in ethanol production, so we’re at the table with E15, but I can’t help but mention the human consumption piece. So sorghum also has health benefits, non-GMO, gluten free, so we’re seeing a lot of interest in that as we as human consumers are trying to hone our diets and really make smart decisions,” she said. “We always take care of our pets too and sorghum is used in that, bird food.”