NCGA Calls HFCS Allocation to Mexico Step in Right Direction (10-07-05)
The recent distribution into Mexico of 250,000 metric tons of U.S.
high fructose corn syrup (HFCS) is the first of many steps needed
to address the dispute with Mexico, the National Corn Growers Association
(NCGA) acknowledged.
HFCS is one of the largest processing markets for corn, and the
U.S. corn sweetener industry has long considered Mexico its top export
destination. Corn growers and refiners were effectively locked out
of the top HFCS export market by a 20 percent soft drink tax imposed
in 1997.
“We are very pleased to see this development and sale of HFCS
into the Mexican market,” said Leon Corzine, NCGA chairman. “This
step forward shows the very hard work done collectively by the administration
and NCGA working closely with the Corn Refiners Association (CRA).”
Corzine said NCGA believes the U.S government
must seek full restoration of the Mexican HFCS market for corn
farmers and refiners and stated that “additional access for
HFCS into Mexico is needed this year to rectify the long-term loss
of this market to our industry.”
“Opening new markets as well as maintaining our regular markets
are extremely important to corn growers because we have lots of corn
and we need markets for this high-quality product that our customers
want to use,” Corzine said. “For example, 7 percent of
total U.S. corn production is used for corn sweetener. Even with
the restrictions that some have tried to place on our product, there
is still high demand for it.”
According to the CRA, the corn processing industry
has lost access to a nearly $3.1 billion HFCS market since Mexico
imposed its soft drink tax. This translated to $1.479 billion in
lost corn sales or 672 million bushels that were not processed into
HFCS.
The Mexican market for HFCS is valued annually at $944 million or
168 million bushels of corn. Full restoration of HFCS exports to
Mexico would result in an increase of $0.10 per bushel in the price
corn in key corn states, or $0.06 nationally.