Sorghum Producers Learn About Guatemala and Dominican Republic Markets 

Four U.S. sorghum producers recently traveled to Guatemala and the Dominican Republic to explore opportunities for U.S. sorghum and dried distillers grains. Both countries are in the process of implementing free-trade agreements, which would benefit U.S. producers. 

Chris Corry, U.S. Grains Council Senior Director of International Operations, believes that Guatemala and the Dominican Republic are looking to decrease their feed costs.

"Both countries' livestock and poultry sectors are under tremendous pressures because of the high cost of feed ingredients," Corry said. "The reason I say that is because today, the only two feed ingredients that comprise a ration, or the bulk of the ration, is corn and soybean mill. So, the producers in the countries are really looking for ways in which they can lower the cost of their feed rations, and one way to do that is to diversify their ingredients. " 

Jay Zimmerman of the Kansas Grain Sorghum Commission said both countries expressed interest in sorghum. Zimmerman said there was a possibility that the U.S. Grains Council will further educate the producers in Guatemala and the Dominican Republic about the benefits of grain sorghum as an alternative feed. 

"There is potential. The U.S. Grains Council is going to hold some instructional meetings for nutritionists for both Guatemala and Dominican Republic and try to help those people understand how they can utilize grain sorghum and what the benefits are and maybe we'll get some interest. There seems to be more potential in Guatemala because of the facilities that are available. There may be potential if the market for corn goes down in Mexico and grain sorghum becomes more readily available," Zimmerman said. 

Stewart Weaver of the Arkansas Corn & Sorghum Board said that the countries face issues such as transportation, the cost of electricity and a corrupt government. However, Weaver said that the primary export issue is tariffs.

"With the tariff, they're paying more for it, so they're not really looking into it," Weaver said. "After this tariff is lifted, its just a matter of getting the right folks in there to work with them and show them and help them to be able to bring it in and start using it. They sound like they're interested. I don't think it's going to be immediate, but I think they will probably start to use some of it. They've got that unsure factor right now. They haven't used it, so they're not really sure if they can work it in or not. But, if you get the right people there and work with them and show them, there's a very good possibility there. "     

The knowledge about sorghum is very basic in both countries, and Lynn Belitz of the Nebraska Grain Sorghum Board said very few livestock producers have any experience with this product.

"In the Dominican Republic, we talked to one of the feed mills, and he said he preferred to use sorghum over corn because it makes a more palatable pellet. I think if we can get the Guatemalans to try some sorghum, then someone will go back down there to see if they are satisfied or not," Belitz said.

Jay Wilder of the Texas Sorghum Producers said both countries are similar in the fact that neither grow sorghum, but instead utilize corn and soybean mill. Wilder said the Dominican Republic would use sorghum in its poultry industry. 

"Most of their grain use would be in their poultry industry, which I think is roughly 70 percent of their consumption as far as food, and then the other second largest would be their swine," Wilder said.

"I think there we've got a pretty good chance of getting in. We just have to show the guys how to use sorghum. They use primarily all corn and soybean mill right now. So we'd just have to teach them how to use milo."

Corry said there were ideas for programs in both countries to educate the people about sorghum.

"What we are proposing to our members is to bring the executive director of each one the co-ops, as well as one of their board members, to the United States, and let them basically move from the stock to the export elevator; move from the farm, where the grain sorghum is being produced all the way to the Center Gulf so they can see it actually getting loaded on vessels and exported," Corry said.

The programs would focus on the handling and storage of sorghum. Corry also said that each co-ops nutritionist would be trained in Mexico on formulating sorghum and dried distillers grains.

The National Sorghum Producers (NSP) works in conjunction with the U.S. Grains Council to ensure profitability for the U.S. sorghum producers.

NSP represents U.S. sorghum producers. Headquartered in Lubbock, Texas, in the heart of the U.S. Sorghum Belt that stretches from the Rockies to the Mississippi River and from South Texas to South Dakota, the organization works to ensure the profitability of sorghum production through market development, research, education and legislative representation. To learn more about NSP, visit www.sorghumgrowers.com.  

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