US & Japan: US Grains Council Mission Focuses on Barley Trade with Japan

Finding the synergies between U.S. barley producers and buyers in Japan was the focus of the U.S. Grains Council’s Simultaneous Buy Sell (SBS) Barley Mission, which returned to the United States on November 12, according to US Grains Council.

Mission participants, who included farmers and agribusinessmen, met with Japanese government officials and feed industry representatives November 7-10, in advance of Japan’s fifth and final SBS barley tender of the year.

“A majority of Japan’s feed barley imports go through the SBS system and we learned that both the Japan Feed Manufacturer's Association and the Ministry of Agriculture, Forestry and Fisheries (MAFF) expect the system to account for most, if not all, of the feed barley purchases in the future,” said Ryan LeGrand, USGC manager of international operations, who accompanied the team.

“We also learned the feed manufacturers were not happy with the plumpness and colour of the barley they received from one of our international competitors after their fourth barley tender. "Our team took the opportunity to showcase the quality of U.S. barley and the U.S. inspection system which guarantees our customers receive the quality of grain they have specified.”

The team also addressed other topics – including the condition of the current crop and declines in U.S. production – during a half-day seminar at the USGC Tokyo office. As part of the seminar, Keith Schumacher from Primeland Cooperatives, CHS Inc., gave a presentation on the U.S. and world barley supply and demand.

Dan Mader of the Idaho Barley Commission, Tom Zwainz of the Washington Barley Commission, Richard Groven of the North Dakota Barley Council and Robert Candee of the Montana Wheat and Barley Committee presented barley quality crop reports from their respective states.

Mader also spoke about new varieties of U.S. barley with MAFF officials and buyers.

“While visiting the Ishonomaki Port Silo Company and Northern Japan Coop Feed Company, there were significant discussions on green pea commingling in U.S. feed barley shipments to Japan – a major concern for some Japanese feed barley customers,” said Cary Sifferath, USGC senior director in Japan.

“The mission members were able to explain to U.S. barley’s number one export customer that both U.S. barley producers and U.S. barley grain elevators are aware of the concerns that Japan buyers have and that they are working hard to reduce these incidences.

"Having these face-to-face meetings before the fifth and final SBS tender of 2005 will hopefully help U.S. barley sales within the SBS system.”

“This mission opened our eyes to the concerns the Japanese buyers have with foreign matter contamination, particularly green pea contamination,” said Schumacher. “We as the industry understood they had concerns, but we did not understand the buyers’ level of urgency. "Those of us on the mission now have to communicate that level of urgency to the rest of the industry.”

U.S. barley accounted for approximately 8.5 million bushels (187,000 metric tons) of 26.6 million bushels (580,000 tons) of feed barley purchased during the first three SBS tenders this year. However, the fourth tender of nearly 9.2 million bushels did not include any barley from U.S. sources. The fifth barley tender for 10 million bushels is expected to take place later this month.

Source: US Grains Council

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