At his weekly press conference on October 3, Iowa Gov. Terry Branstad announced he will lead a trade mission to China and Japan in mid-November. Branstad was joined by the president of the Iowa Pork Producers Association, Al Wulfekuhle, and the executive director of the Iowa Beef Industry Council, Chris Freland. 

In 2015, Iowa companies exported $1.2 billion in manufactured and value-added goods to China and $1.1 billion to Japan. China is Iowa’s third largest export destination, while Japan is the fourth largest. In addition, Japan is Iowa’s leading export market for pork and beef. Iowa companies exported $564 million in meat products to Japan in 2015. 

NEW MARKETS: Primarily focusing on beef and pork exports, Iowa Gov. Terry Branstad will lead a trade mission to China and Japan next month aimed at growing Iowa exports to the two giant Asian economies. The Iowa group will depart for Asia Nov. 11 and return to Iowa on Nov. 18.

Trip will take place Nov. 8 to 18; goal is to build trade relations
“This mission marks my fourth visit to China and third to Japan since 2011 and is a testament to my long-standing commitment to strengthening economic ties with these important export markets for the state,” said Branstad. “Trade missions like this one allow Iowa companies to expand their markets outside of the U.S. and ultimately creates more jobs and strengthens our economy.”

The mission includes stops in Beijing and Hebei (Iowa’s sister state) in China while

Tokyo is the primary destination in Japan. In China, Branstad is slated to speak at China’s Food Security and Food Safety Strategy Summit and the International Meat Conference. Additional mission highlights include a potential meeting with Chinese President Xi Jinping, attending a reception at U.S. Ambassador to Japan Caroline Kennedy’s residence, and meetings with investment or trade prospects. 

Asian markets very important for Iowa and U.S. ag products
The governor’s office is working to secure a meeting with the Chinese president. "This trade mission is part of the Iowa Economic Development Authority’s ongoing strategy to build on Iowa's success in exporting to China and Japan," said IEDA director Debi Durham. "These markets are important to our agricultural commodities and with the recent announcement that China plans to lift the 13-year ban on beef imports from the U.S., Iowa is poised to benefit from renewing our relationships in this industry."

China announced recently it is planning to open its market to U.S. beef. China had concerns about BSE (mad cow disease) in 2003 and quit buying U.S. beef. At the governor’s press conference Oct. 3, the executive director of the Iowa Beef Industry Council, Chris Freland, was asked: How will China’s decision to once again allow import of U.S. beef into that country impact Iowa’s beef producers?

China is exciting new market for Iowa beef producers
“China imported 2.3 billion pounds of beef in 2003 before the BSE ban,” says Freland. “We are cautiously optimistic we can now regain some of that market.” How much?

“There are regulations, negotiations and they have qualified entities, of course,” she adds. “So we need to find out that the specifications include, what the market demands, to fully understand this. To throw out a figure this early is really of no value because 2003 statistics are 13 years old. Obviously market conditions have changed. But we know with a 1.4 billion population and a rising middle class, that Asian market, especially in China, will open another big market for U.S. beef and Iowa beef.”

Iowa firms involved in meat processing are on this trip
Mission participants include Iowa companies involved in meat processing and representatives from the Iowa Pork Producers Association, Iowa Beef Industry Council, Iowa Corn Promotion Board and Iowa Soybean Association. Iowa companies will participate in meetings specific to their market entry or expansion needs. IEDA is working with the state’s China contract representatives and the U.S. Meat Export Federation (USMEF) to identify trade and investment prospects for the delegation.

The IEDA’s International Trade Office markets Iowa products and services, educates Iowa businesses on exporting and assists global companies wishing to establish or expand operations in Iowa. To find out more about these services or other trade missions that the IEDA is planning, visit iowaeconomicdevelopment.com.

Iowa Lt. Governor is on a trade mission to Argentina and Uruguay
Meanwhile, Iowa Lt. Gov. Kim Reynolds is already on a trade mission; she is in South America with an Iowa group. She left for a trade mission to Argentina and Uruguay this past weekend. Her trip is also aimed at expanding trade opportunities for Iowa farm products and manufactured goods. Her trip is aimed at expanding trade opportunities for Iowa businesses and is being coordinated by the Iowa Economic Development Authority (IEDA).

“Trade missions like this one in South America allow Iowa companies to expand their export markets outside of the U.S. and ultimately create more jobs here at home,” said Reynolds. “Iowa has a great reputation globally for quality people, products and services. I’m looking forward to leading this trade mission beginning this weekend to expand additional trade opportunities.”

Mission aimed at expanding trade opportunities in South America
Argentina is a very attractive market for U.S. exporters. With imports all but frozen over the past four years, there is now a wide variety of market segments that need to import supplies, capital goods and services in order to manufacture locally, as well as companies that seek to import sophisticated technology and equipment that is not currently available in the market. As Argentina addresses its current economic challenges, opportunities will increase and the possibilities available to U.S. exporters extend to both the public and private sectors. This is an excellent time to begin exploring the market and establishing relationships. Participants on this trade mission will be primarily visiting the Buenos Aires and Rosario areas. 

Uruguay is a market-oriented economy with an open trade policy which has been experiencing steady economic growth. A combination of favorable exchange rates, higher wages, historically low unemployment, and consumer confidence in the economy has been increasing demand for imported products. After 12 years of unprecedented high growth, the economy has gradually decelerated, but growth of about 3% is still projected for 2016. Participants on this trade mission will primarily be visiting the Montevideo area.

IEDA also explores opportunities for international investment in Iowa
Reynolds will be meeting with U.S. embassies, ministries, chambers, universities, associations and Iowa company operations in Buenos Aires and Rosario, Argentina and Montevideo, Uruguay. Participating companies and organizations include: ACT, Inc.; Cozen O’Connor; Fredriksen & Byron; Holbrook Development; MetalTech Industries; Tri-States Grain Conditioning.

The IEDA’s International Trade Office not only markets Iowa products and services, educates Iowa businesses on exporting and assists global companies wishing to establish or expand operations in Iowa, but also explores opportunities internationally for investment within the state. Taxpayer dollars will not be spent on the lieutenant governor’s travel. Her travel will be paid by private donations to the IEDA Foundation.