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Foreign buyers like U.S. product quality, frown on shipping costs

A foreign buyer likes American value-added feed products but says there is a trade obstacle to overcome.

Wael Gaama from the United Arab Emirates and Mohamad Gad from Saudi Arabia are in Wisconsin to find suppliers for specialty feed products like milk replacers and amino acid supplements for dairy cows.

Gaama tells Brownfield there are a lot of opportunities for U.S. exports, but he says Americans have some challenges to overcome.  “The issue is the midwest farmers are focused on the local market in the U.S.  There is actually a lack of experience in exports in exports, and I actually advise that by diversifying your markets outside the U.S.A. will actually minimize the risk of any economic cycle.”

He says the American products are competitively priced compared to European suppliers, but the transportation costs from the U.S. eat away at margins.  “We have to look for optimum supply chain partners in order to move the products at a good price.  It’s not logic(al) that the container moves from Japan with $1,500 dollars but from here is $3,000 dollars which is totally not realistic.”

Gaama and Gad tell Brownfield the American products generally have better quality than what they can get in Europe.