A trade team from the Taiwan Feed Industry Association visited Iowa in mid-September, meeting with Iowa Corn leaders as part of a Goodwill Mission to build contacts between Taiwanese ag leaders and Iowa farmers and suppliers.

As part of this mission, the delegation met with Iowa Gov. Kim Reynolds, members of the Iowa Corn Promotion Board (ICPB) and the U.S. Grains Council (USGC) in Des Moines, Iowa. The letter of intent signed between ICPB and the Taiwan Feed Industry Association outlines the intention by the Taiwanese to purchase 5 million metric tons (197 million bushels) of U.S. corn and 500,000 metric tons of distillers dried grain with solubles (DDGS) between 2018 and 2019. Estimated value of these future purchases totals $1.05 billion.

Important buyer of U.S. corn and coproducts
“Taiwan is an important buyer of U.S. corn and coproducts,” says ICPB director Mark Heckman, a farmer from West Liberty. “By having this goodwill mission visit to our state, we are strengthening trade ties and helping to maintain the well-established partnership between the U.S. and Taiwan. Trade matters to our economy and to U.S. farmers who need access to global markets to maintain and expand exports of corn in all forms.”

Taiwan imported more than 2 million metric tons (80.2 million bushels) of U.S. corn in marketing year 2015-2016, claiming a position as the sixth largest U.S. corn market. Taiwan also is a key buyer of U.S.-produced DDGS, the coproduct of ethanol production and a high-protein feed ingredient for livestock.

Trade mission ongoing since 1998
The goodwill mission has been organized by Taiwan’s Ministry of Foreign Affairs every other year since 1998 and allows Taiwanese participants to gain familiarity with U.S. coarse grain yield, production and quality. It also educates the delegation on the advantages of U.S. grain and related coproducts and reconfirms the U.S. commitment to being the long-term, reliable supplier of grains for their market.

“The U.S. Grains Council has worked in Taiwan for more than four decades and has watched Taiwan grow into one of our largest customers,” says Deb Keller, an Iowa corn farmer from Clarion who is chairwoman of USGC. “The goodwill mission helps us maintain a healthy trading relationship with Taiwanese buyers and end-users by providing continued confidence in the U.S. market.”

Hosting trade teams builds relationships
ICPB is an active member of USGC, a nonprofit organization that works to develop markets, improve lives and enable trade around the world. USGC develops export markets for U.S. barley, corn, grain sorghum and related products, such as ethanol and DDGS. Participating in the goodwill mission aids USGC in its work to preserve Taiwan’s preference for U.S. coarse grains and coproducts, says Keller.

Keller says USGC will continue to nurture its relationship with Taiwanese policymakers and industry leaders by bringing trade teams to the U.S., sending U.S. industry leaders to Taiwan and undertaking direct trade servicing efforts. Besides Iowa, the group from Taiwan also visited some other states on this trip.

Introducing U.S. growers to foreign buyers
There is no pricing or date-specific delivery included in these agreements that are signed. “It is a letter of intent to purchase,” explains Heckman. “The trade teams are coming here, looking at what we have and how we produce these products, and stating that they value our business relationship. Likewise, we tell them it is a commitment between our two countries, and we pledge our support as they buy our products. Our goal is for Taiwanese buyers and end users to have continued confidence in the U.S. marketplace for grain and other U.S.-produced ag products.

“As the Iowa Corn Promotion board, we provide education,” adds Heckman. “We introduce our growers to the foreign buyers. Relationships matter and trade matters. We want our customers to be confident in our product. They want to see the quality, as well as establish a relationship so they know we’re in it for the long haul.” For more information, visit iowacorn.com.