Severe Decline in Corn Gluten
Exports Weakens US Ethanol Industry's Future
New ACGF Survey Shows
Only 26% of Elevators Segregate GMO from Non-GMO
...view 2007 Elevator Survey
Results
WASHINGTON, May 18, 2007—The American Corn Growers
Foundation (ACGF) surveyed 1,057 grain elevators during
April 2007 in the eighteen (18) states that produce the
majority of U. S. grain. “Only 26% of the elevators
surveyed report that they require the segregation of GMO
(genetically modified) varieties from Non-GMO varieties.
This finding raises concerns about the ability of the U.S.
to hold on to the critical corn gluten export market that is
so important to the future health of our ethanol sector,”
reports Dan McGuire, Director of the ACGF Farmer
Choice-Customer First program. “Both the ACGF and the American
Corn Growers Association (ACGA) are again warning U.S. corn
farmers and the critically-important U.S. ethanol industry
that key U.S. corn gluten export markets are being lost due
to unapproved biotech varieties, specifically an unapproved
Bt corn variety was detected in U.S. cargoes of corn gluten
feed and pellets in April 2007 at the Port of Rotterdam and
shipped from New Orleans.”
“According to USDA data for
the current corn marketing year which began on September 1,
2006, U.S. corn gluten exports are 38.1% below the year
earlier to the European Union-27 for the September to March
period and the EU has been by far the most important export
market for U.S. corn gluten feed and meal,” said McGuire.
“Foreign demand for U.S. corn gluten is extremely important
for the economic future of corn processing ethanol plants.
As recently as the 1999-00 marketing year the EU imported 5
million of the 5.8 million metric tons (MMT) of total U.S.
corn gluten exports. By marketing year 2005-2006 U.S. corn
gluten exports had dropped to only 3.6 MMT with the EU-27
importing only 2.655 MMT. It’s time to re-learn the
marketing reality that ‘the customer is always right’ in
deciding what they choose to buy.”
“Farmers are realizing
relatively strong corn prices as a welcome change due to
growth in the domestic ethanol industry, which needs the
export market for corn gluten as well as distillers dried
grains (DDG),” said Larry Mitchell, ACGA Chief Executive.
“Biotech companies have preached that the U.S. should be
able to grow the grain varieties it wants, but given the
failure and arrogance of U.S. ‘export-oriented’ farm policy
over the past ten years of telling the world what they will
buy, taken together with the grain export sector’s
ill-conceived attempts to ‘privatize’ export grain
inspection at our ports, importers are losing confidence in
the U.S. system. It’s time for both the biotech and export
sectors to reconsider their arrogant policies.”