Corn Exports from the USA

November 8, 2021

Corn Exports from the USA

Meeting the food demand of an expanding human population necessitates higher production as well as a significant policy shift in how food is produced, processed, delivered, and consumed. Another major problem of global agriculture is minimizing environmental and human health repercussions.

Agriculture occupies 38% of the world's geographical area, contributes less than 1% of GDP in wealthy countries and up to 50% in some developing countries, and produces enough calories to meet the present food demand of the human population. However, 815 million people globally are malnourished.

Agriculture also provides many benefits to human society in the form of food, feed, fiber, bio-products, genetic material maintenance, carbon sequestration, landscape aesthetics, recreational opportunities, and so on, commonly referred to as ecosystem services, are increasingly being studied in agricultural systems. In agriculture, these are referred to as positive externalities.

Corn is vital in the world economy, with the United States producing 370 million tonnes from 36 million hectares (harvested 33.08 million hectares in 2017), accounting for more than one-third of global corn production. More than 92 percent of this is GM corn.

It is currently the second-largest traded agricultural commodity globally after wheat, with a global production of 1.06 billion tonnes from 187 million hectares. It is mainly utilized as animal feeding in developed countries, followed by ethanol and other industrial applications. In contrast, in other countries, the majority of corn is consumed directly by humans.

Although corn (or maize, as it is called throughout much of the globe) is grown in nearly all 50 states, production is predominantly concentrated in the northern and Midwestern states known collectively as the United States Corn Belt.

The United States produced more than 14.42 billion bushels (366 million metric tonnes) of maize during the 2018/2019 crop marketing year (September 1-August 31). Approximately 14.3 percent of total output was exported to over 73 different countries.

The top three maize export destinations for the United States were Mexico (31%), Japan (25%), and Colombia (9%).

The global maize market is becoming increasingly competitive. The United States Grains Council feels that having accurate, consistent, and comparable information is in everyone's best interests in the long run. Increased trade will be facilitated by improved knowledge, and when trade works, the globe benefits.

The US Grains Council develops two reports, the Corn Harvest Quality Report and the Export Cargo Quality Report, to assist international buyers of US maize in understanding the initial quality of US yellow commodity corn as it enters the marketing channel and is assembled for export.

Corn exports from the United States increased by $1.6 billion (20 percent) year on year to $9.2billion in 2020. Strong feed demand in China and China's implementation of the Phase One Agreement contributed to this rapid increase. Exports to China reached $1.2 billion, the highest level since 2012.

After Mexico and Japan, China will be the third-largest exporter of corn from the United States in2020. The top three markets accounted for 62 percent of all corn exports from the United States. The total value of corn exports from the United States to Colombia, South Korea, and Guatemala, three of the country's free trade partners, increased by $424 million in 2019.

Exporting goods is critical to the viability of the American economy. With about 95% of the world's population residing outside the United States, the importance of agricultural exports to American farmers and the US economy cannot be overstated.

Agricultural exports account for approximately 10% of total national exports and sustain nearly 1 million American jobs—wow! To be sure, exports account for 31% of farm income, as evidenced by the fact that one out of every three acres in the United States is cultivated for crops that will be sent out of the nation in some form.

From grains to value-added products such as pork and beef, the United States leads the world in corn exports, with Iowa leading the way as the top producer of corn, DDGS, and ethanol, among other items. Value-added products such as ethanol and meat products have accounted for around 63 percent of US agricultural exports.

The inland waterways, dubbed "the backbone of the transportation logistics system," are an essential aspect of the transportation supply chain in the United States. The system consists of a massive 12,000-mile network of interconnected rivers with 218 locks.

However, the majority of the Mississippi River system's locks and dams were built in the 1930s and are already far past their 50-year design life. Modernizing the nation's inland waterways system will sustain and generate American employment, increase US exports, and inject billions of dollars into the US economy, fueling our growth for the next 50 years.

How can Royale Global help?

We source high-quality agricultural food exports from across the United States for export to countries in need.

We ship Soybeans, Corn, Wheat, Rice, and Tree Nuts all over the world.

Our clients purchase these US agro-products for their domestic markets, where they benefit handsomely due to their great demand.

Corn exports from the United States are in high demand by various businesses around the world. You may utilize this high-quality export to set your business ahead of the competition. You want the most incredible corn available, and you can get it with corn imports from the United States.

When it comes to corn exports from the United States, Royale Global makes the process easier. We handle the search for the best corn to export from the United States and the associated discussions. We will then direct the transportation of your new maize food import in the most cost-effective manner possible.

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