Iowa Ag Connection - Taiwanese Sign Letters of Intent to Buy Iowa Corn

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Taiwanese Sign Letters of Intent to Buy Iowa Corn
Iowa Ag Connection - 09/18/2017

A trade team from the Taiwan Feed Industry Association visited Iowa last week and met with Iowa Corn leaders as part of a Goodwill Mission to build contacts between Taiwanese agricultural leaders and Iowa farmers and suppliers.

As part of this mission, the delegation met with Iowa Governor Kim Reynolds, Iowa Corn Promotion Board (ICPB) and U.S. Grains Council (USGC) in taking part in a signing ceremony held today. The letter of intent signed between ICPB and the Taiwan Feed Industry Association, outlines the intention by the Taiwanese to purchase 5.0 million metric tons (197 million bushels) of corn and 0.5 million metric tons of distillers dried grain with solubles (DDGS) between 2018 and 2019. The estimated value of these future purchases totals $1.05 billion.

"Taiwan is an important buyer of U.S. corn and co-products," said ICPB Director Mark Heckman, a farmer from West Liberty. "By having this Goodwill Mission in our state, we are strengthening trade ties and helping to maintain the well-established partnership between the United States 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 nearly 40 percent of total market share and a position as the sixth largest U.S. corn market. Taiwan also serves as a key buyer of U.S. DDGS, a co-product of ethanol production that is a high-protein feed ingredient for livestock.

The Goodwill Mission has been organized by Taiwan's Ministry of Foreign Affairs (MOFA) every other year since 1998 and allows Taiwanese participants to gain familiarity with U.S. coarse grains' yield, production and quality. It also educates the delegation on the advantages of U.S. coarse grains and related co-products and reconfirms the United States' commitment to being the long-term, reliable supplier of grains for their market.

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