Sorghum Checkoff works to further develop Mexican market

December 03, 2010

The Sorghum Checkoff and the U.S. Grains Council are working together to develop new relationships with the United State’s largest sorghum importer. A group of Mexican sorghum buyers visited the Texas Panhandle last month to learn more about the crop’s benefits as a livestock feed and how it can continue to be a viable component of the Mexican feed industry.

 

The group visited a variety of facilities where they learned about the different aspects of the sorghum livestock feed process. Stops included the Levelland-Hockley County Ethanol Plant where they learned about the feeding value of sorghum DDGs and a flaking company that steam flakes sorghum.

 

The group also attended a short course on sorghum purchasing that addressed marketing, grading, basis and other variables that affect the price of U.S. sorghum. Buyers were able to talk with industry leaders about how trades are negotiated and how basis affects those trades.

 

Mexico is the currently largest importer of U.S. sorghum and uses it mainly in their rapidly growing livestock industry.

 

"This group of buyers from Mexico will be the next generation of sorghum buyers," said Florentino Lopez, marketing director for the Sorghum Checkoff. "Having the opportunity to educate the younger generation of sorghum buyers in Mexico is important, especially as their country’s livestock industry continues to grow. Some have already assumed their roles as buyers, but each of them will benefit from having a better understanding of the industry."

Miguel Davalos of Attebury Grain in XX met with the group to discuss marketing and what variables affect the price of sorghum.

 

"At the end of the day, these missions are intended to add value to sorghum," Davalos said. "This is helpful to sorghum producers because they add value to the supply chain, which translates into more demand and potentially higher prices for their sorghum.