Corn

2001, China’s corn refiners had a capacity of2.8 million tons. It is estimated that China’scorn refining capacity will reach 24.5 milliontons this year, which is about 20% of thecountry’s corn production. The industry hasevolved at such a swift pace that thegovernment has imposed restrictions on anynew or planned construction. Through 2010,the Chinese government has set a limit on theproportion of national corn output that can beprocessed to 26%.Over the past 10 years, the value of U.S.refined corn exports to China has increasedsignificantly, from about $8.5 million in 1996to nearly $29.5 million in 2006. China doeshave a strong corn refining industry andnearby reliable suppliers of starch (tapiocastarch from Thailand and Vietnam). However,food costs in China are surging and theChinese government is determined to controlfood inflation for social stability and managedgrowth. If China’s corn refining industrycannot sustain growth and locally producedfood inflation bites consumers, the Chinesegovernment will intervene by subsidizingimports of refined corn products from theUnited States. Given the rate at which theChinese economy is growing, opportunities togrow this export market are apparent.OutlookThe outlook for growth in refined cornexports is positive due to a number of factors.The U.S. industry has a stable supply of highquality corn—a critical factor in theproductivity of corn wet millers, the quality ofour products and the ability to meet customerdemand. Our industry continues to invest inproduct development to meet the needs of ourcustomers, both domestic and international.Regional free trade agreements reducebarriers and present real opportunities forexport growth. The value of the U.S. dollarmakes exports of high-quality productsexceptionally attractive to countries shoppingfor ingredients to increase the quality of theirfood supply. These factors, combined withthe economic and population growth expectedin many parts of the world, present a clearsignal that exports of the U.S. corn refiningindustry are headed up.World Corn Production,Consumption & StocksPRODUCTIONArgentinaBrazilCanadaChinaEgyptEthiopiaEU-27IndiaIndonesiaMexicoNigeriaPhilippinesRepublic of South AfricaUkraineVietnamOthersUnited StatesTOTALCONSUMPTIONArgentinaBrazilCanadaChinaEgyptEU-27IndiaIndonesiaJapanRepublic of KoreaMexicoNigeriaPhilippinesRepublic of South AfricaUkraineOthersUnited StatesTOTALENDING STOCKSBrazilCanadaChinaEU-27IranMexicoRepublic of South AfricaOthersUnited StatesTOTAL2005/0615,80041,7009,361139,3655,9324,00061,15314,7106,50019,5007,0005,8846,9357,1503,81865,245282,311696,3646,20039,50010,837137,00010,10061,50014,2007,90016,7008,57927,9006,8005,8008,2005,100104,189232,063704,0293,0152,00135,2559,9341,3132,7072,30816,51849,968123,0192006/0722,50051,0008,990145,4805,9405,00054,64714,9806,70022,0007,8006,2306,7006,4004,31267,169267,598703,4466,70041,00011,436143,00010,50061,10014,6007,90016,5008,83330,3007,6006,3008,6005,250108,509230,783721,4824,2151,34332,4829,8311,7133,2071,30817,76733,117104,983Source: USDA, Foreign Agricultural ServiceBased on local marketing years in thousands of metric tons.2007 Corn Annual | 9