(Des Moines) — Exports account for nearly 60 percent of the US soybean demand with a large portion shipped to China. Recently, a delegation from the Iowa Soybean Association, executives from Landus Cooperative of Ames, and Iowa
Secretary of Agriculture Bill Northey all traveled to China to solidify trade relations and encourage Chinese Agriculture officials to consider purchasing U-S soybeans and soy products. Grant Kimberly serves as the Iowa Soybean Association’s Director of Market Development. He says such trade missions are
important for Iowa farmers.
Kimberly says relationships do matter in Asia. The Iowa Soybean Association official says market prices are important too, but if everything is equal, Chinese buyers will go with the people they personally know and have conducted prior business.
Kimberly says although China is already the number one buyer of U-S soybeans, he believes there is still additional growth potential to expand the Chinese market.
The Iowa Soybean Association official is predicting a five percent annual increase for feed demand in the foreseeable future, at least for the next decade.
Kimberly says perhaps even a ten percent annual increase may happen for vegetable oil demand, which of course includes soybean oil. Kimberly says Chinese officials have and will again visit Iowa. He says Chinese officials like to see for themselves the farmers who grow the soybeans, as well as the grain handling companies, and even the shipping ports.
Photos courtesy of Iowa Secretary of Agriculture, Bill Northey.