Trade and Cooperation Planned with Top Export Market for U.S. Soybeans

The American Soybean Association’s (ASA) President signed an agreement yesterday in Washington, D.C., that promotes long-term trade and cooperation with China. In a Capitol Hill trade conference, ASA President Bob Metz signed the memorandum of understanding with Cao Xumin, President of China’s Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-products (CFNA).

“For nearly 25 years, ASA has been in China, working with the trade and other organizations on increasing soybean demand,” said Metz, a soybean grower from South Dakota, who welcomed the group to Washington, D.C. “We are proud that the industry trusts us and values the programs conducted for our customers.”

ASA hosted the trade conference in cooperation with the U.S. Foreign Agriculture Service, United Soybean Board and U.S. Soybean Export Council. United States Department of Agriculture (USDA) Under Secretary J.B. Penn and other USDA leaders, as well as North American Export Grain Association (NAEGA) representatives, participated in the program that helped wrap up the Chinese delegation’s trip to the United States, which also included visits in Illinois and Minnesota.

The Chinese participants were responsible for 67 percent of all the soybeans imported into China each year. In addition to CFNA, participants included members of the Ministry of Agriculture, Ministry of Commerce and Inspection and Quarantine Authority, along with representatives of Chinese companies. Chinese speakers at the conference cited aquaculture and increasing incomes as drivers for China’s growing demand for soybeans. Vice-Minister for the Chinese Ministry of Agriculture Niu Dun projected China increasing its soybean demand by 10 percent every year.

The three-year agreement between CFNA and the American Soybean Association International Marketing (ASA-IM) renews a 2003 agreement. It includes measures to increase trade and cooperation, such as the exchange of information on topics ranging from soybean growing conditions to solutions to trade issues. The parties will also conduct training programs for U.S. soybean end-users as well as downstream industries in China related to feed and animal production. The groups will link websites to facilitate the exchange of member companies of both parties. NAEGA also signed an agreement with CNFA and will conduct seminars in China in 2006.

Last year, China imported more than 435 million bushels (valued at more than $2.5 billion) of U.S. soybeans, making it the world’s largest importer of U.S. soybeans. Total U.S. exports last year of 1.1 billion bushels were valued at more than $6.3 billion, the highest value U.S. commodity export.

“The U.S. soybean industry is committed to growing and exporting quality soybeans,” Metz said. “U.S. soybean producers are proud that the soybeans that we grow are exported all over the world.”