USGC-USfarmerslikelytomaint.cfm USGC: U.S. farmers likely to maintain market share
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USGC: U.S. farmers likely to maintain market share

"U.S. grain producers have a stake in the global marketplace and that role has become more important than it ever has before," said U.S. Grains Council Special Assistant for Planning, Evaluation and Projects Erick Erickson at the Council's 6th International Marketing Conference and 49th Annual Membership Meeting in Guatemala City, Guatemala. "There are a lot of uncertainties of what 2009 will bring for U.S. commodities, world economic growth, oil prices and finical turnaround. The downturn in total world trade and increase in exportable supplies in countries like Russia, the United Kingdom and the European Union will provide a tough year for U.S. coarse grains exports. However, the fundamentals for U.S. farmers to sustain their market share and continue to meet global demand are in tact."

Total world coarse grain production is expected to increase by 2.4 percent in 2009 as well as total world feed use, according to projection numbers from USDA's Foreign Agricultural Service. U.S. farmers are the leading supplier of coarse grains, providing more than 60 percent of the world's corn and sorghum. Crops in Argentina and Brazil were hurt significantly by drought and their production numbers continue to decline. This will help mitigate the lowered projection of U.S. exports as lower commodity prices will stimulate demand.

"U.S. ethanol production provided a tremendous boost in corn demand over the last five years. Although some questioned whether or not ethanol production would limit the availability of U.S. corn, U.S. farmers have proven they can provide enough corn for feed, food and fuel," he said. "The United States will continue to be the major supplier of coarse grains for the world. The Council will continue to explore market opportunities for U.S. coarse grains and work vigorously to increase profitability for U.S. growers."


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