Iowa Gov. Kim Reynolds will lead a first-ever all-Iowa agriculture trade mission to China July 19-28 with the goal of boosting exports of the state’s farm commodities. Traveling with her will be representatives of commodity groups and the Iowa Farm Bureau, emphasizing Iowa’s corn, pork, soy, beef, egg, poultry, dairy and turkey industries.

“This is the first time all of Iowa’s farm groups have come together for a trade mission. There is no better time than now to market and pitch our products in China,” says Reynolds. “Our relationship with China is strong, and their growing middle class means increasing purchasing power. Iowa stands to gain significantly as a result.”

Reynolds, who became Iowa’s chief executive May 24 after former Gov. Terry Branstad became U.S. ambassador to China, says the mission is to build relationships, understanding and trust with the hope of opening new possibilities for Iowa ag products. The group will meet with government officials and industry partners in China, whose insight will be important as the group navigates solutions to some of the current issues. The Iowa visitors will also meet with Branstad in Beijing.

Exports to China grow Iowa ag value
“This is an historic mission,” says Craig Floss, chief executive of the Iowa Corn Growers Association. The Iowa farm and commodity leaders say China has 10% of the world’s arable land but 20% of the global population, which means imports are essential for a stable food supply. China has 1.4 billion people, a population that has a middle class larger than the entire population of the United States.

Kirk Leeds, CEO of the Iowa Soybean Association, says China’s fish farms potentially offer a huge new opportunity for U.S. soybean exports. The Iowans plan to visit an aquaculture operation in China, which is already the largest importer of soybeans. China began importing soybeans in the mid-1990s, and today about one of every four rows of Iowa soybeans is exported to China.

Matt Deppe, CEO of the Iowa Cattlemen’s Association, says ICA is cautiously optimistic about recent developments regarding China, which plans to lift a 13-year-old ban on imports of U.S. beef. China stopped importing U.S. beef in 2003 to prevent the spread of mad cow disease. “Gaining access to the Chinese market once again for our beef will be a very crucial first step in our work going forward,” says Deppe.

Selling U.S. beef, more pork to China
As a leading beef producer, Iowa has a lot to gain from the Chinese market, estimated to be worth $2.6 billion a year. Some of the cuts of beef in China, such as beef tongue, are not popular in the U.S., but they do have an opportunity for sales in China.

In 2016, $5.9 billion worth of U.S. pork was exported, including more than $1 billion from Iowa. Pork industry officials say this adds more than $50 to the value of each hog marketed. They are also optimistic about increasing exports of other Iowa farm commodities, including dairy, turkey and distillers dried grains with solubles, obtained from ethanol production and used to feed livestock and poultry.

“I want to thank the individuals who are stepping up to lead this trade mission on behalf of Iowans,” adds Iowa’s new Lt. Gov. Adam Gregg. “Every time we open new markets, it means more career opportunities for families in every corner of our state.” The trip will be funded by the participating agricultural organizations.

Need to bring down market barriers
For some of Iowa’s commodities, China is a developed market. For others, it is a new opportunity to bring down barriers to imported ag products. Examples the Iowa governor’s office cites include:

• Soybeans. China is by far the largest soybean importer, projected at 83 million metric tons, or a little more than 3 billion bushels, according to the U.S. Soybean Export Council. Total feed use for aquaculture (fish farming) in China was around 36 million metric tons in 2015, with soy product use for aquafeed estimated at 8.8 million metric tons. That equals over 408 million bushels of soybeans.

• Beef. China’s ban on importing U.S. beef has been in place for 13 years. The recent announcement to lift the ban provides opportunity for cattle farmers, as 13% of U.S. beef production is exported.

• Pork. Over the last decade, U.S. pork exports to China and Hong Kong have surged from $271 million in sales and 169,000 metric tons in 2007 to over $1 billion in sales and 545,000 metric tons in 2016.

• Corn. China imported more than 50% of the exportable supply of U.S. distillers dried grains with solubles, or 6.3 metric tons valued at nearly $1.6 billion in 2015.

• Dairy. In 2016, China was the fourth-largest market for U.S. dairy products, as it imported $384 million worth, with potential for much more.

• Turkey. Iowa is fifth in U.S. turkey processing and eighth in turkey production. Iowa farmers and processors will benefit by reopening access for U.S. turkey products into the Chinese market.

“An estimated 93% of our market is outside the United States,” sums up Reynolds. “We need to continue to look for ways we can grow and expand access to Iowa commodities and products on the world market.”