USGC: Indonesia, Vietnam ripe for U.S. sorghum
The U.S. Grains Council said end-users and feed millers in Indonesia and Vietnam offer ripe markets for U.S. sorghum exports.
'The addition of sorghum to the repertoire of feed ingredients used would be highly beneficial to the region as sorghum currently has a zero percent import tariff in Indonesia and a 5 percent tariff in Vietnam,' said Alvaro Cordero, USGC's manager of international operations, who recently traveled to Indonesia and Vietnam with Joe Hancock of Kansas State University to promote U.S. sorghum in these markets.
Seminars and workshops funded in part by the United Sorghum Checkoff Program allowed Cordero and Hancock to present the latest updates on the nutritional aspects of sorghum and demonstrate its competitiveness in feed.
USCG noted that Indonesia's meat production is dominated by its large poultry sector, which accounts for 75 percent of total feed demand. Indonesian poultry consumption has been growing 6 percent a year, while feed production has increased alongside feed demand at an estimated rate of 7 percent per year. These aspects add to the growing prospect of Indonesia as a consistent importer of U.S. feed grains, such as sorghum, the trade group said.
Vietnam is also an expanding market for U.S. sorghum and corn, since local and regional corn crops are of poor quality, Cordero said.
'While the import tariff for U.S. yellow corn and sorghum is 5 percent, local corn is priced relatively high at $300 per metric ton. Import price for U.S. corn and sorghum is around $315 per ton CIF (Cost, Insurance and Freight). As Vietnam continues to develop, people will pay the extra price for a better quality product,' Cordero said.
USGC: Indonesia, Vietnam ripe for U.S. sorghum
