Chinese Corn Taking Asia by Storm

South Korean, Malaysian & Indonesian Corn Imports by Origin

* Partial year data

** Forecast

  In just four years, China has replaced the United States as the predominant corn supplier in three key Asian markets. The United States now has only a quarter of its former market share in South Korea, Malaysia, and Indonesia, while China’s share in these markets has tripled.

  The United States had a comparative marketing advantage in those markets due to its ability to consistently and reliably ship large quantities of good-quality, government-inspected and certified corn. Despite significantly higher freight costs and relatively high prices, this reliability was of primary importance to the major buyers.

  In recent years, however, as markets evolved to accommodate buyers’ changing needs and priorities, the U.S. advantages have been undermined by China. Despite inconsistent quality and shipment scheduling, China is able to offer lower freight costs and low prices, in part as a result of its proximity, government support of internal transportation costs, and value-added tax rebates. Additionally, China has been able to capitalize on its ability to make small, more frequent shipments, thereby lowering the storage cost for buyers.