Cargill AgHorizons President discusses 5 ways to boost corn exports
At the US Grains Council's 7th International Marketing Conference, Christopher Langholz, president of Cargill AgHorizons, spoke to the nearly 200 attendees on the significance of USGC's role in expanding trade opportunities for US farmers.
Acknowledging the ongoing balancing act between managing supply and demand, he emphasized the need to focus on promoting demand creation to unlock the full potential of the US ag supply chain.
"The last 10% of demand sold effectively determines the price on 100% of supply," Langholz says. "If the 1.3 billion bushel corn carry out of 2008 would have been 500 million bushels higher or lower, it would have had a significant effect on the price."
"Exports are a way to get us those extra, critical cents per bushel," he adds. "We want demand that we can see coming - and be able to produce for it."
Langholz discussed five tangible ways to increase US corn exports:
- Active Trade Policy Agenda.
Langholz says approvals on pending free trade agreements are fundamental to expanding US ag exports.
- Re-investment in US Export Infrastructure.
"The United States has a competitive advantage with the farm-to-market river system," said Langholz. "We need to invest in our inland waterways. Keeping that system well-functioning and efficient is key for long-term success."
- Champion Greater Use of Biotechnology.
"We continue making inroads on acceptance of biotechnology, but still face many challenges."
- Adaptability and Capability of Supply System.
Langholz says the US has significant market advantage due to unparalleled capabilities such as combination vessels, fast loading, credible governmental inspection service and flexibility in standardized contract terms.
- Basic Market Development in the Right Sectors.
Langholz notes, "This is what the Council does best. Do more of what you're doing."
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