Representatives of the Iowa Soybean Association will accompany Gov. Kim Reynolds and more than 20 agricultural leaders for a historic trade mission to China July 19-28. They will discuss trade and related issues with Chinese officials, with the goal of boosting demand for Iowa-grown grains, meat, milk and eggs.

The delegation representing Iowa’s soybean, corn, beef, turkey, dairy, poultry and pork industries will be greeted in the country of nearly 1.4 billion people by Terry Branstad, Iowa’s former governor and new U.S. ambassador to China.

“This will be my sixth trade mission to China. We are going because that country is a priority customer for Iowa and our farm families,” says Reynolds. “One of every six jobs in Iowa is tied to trade, benefiting every sector of the state’s economy. The Iowa brand is meaningful and carries to all markets across the world. Growing markets ultimately improve Iowa’s economy and you do that by building relationships and meeting customers in their countries to better understand their needs.”

Frequent destination for Iowa business leaders
Kirk Leeds, chief executive of ISA, has traveled to China 20 times on behalf of the soybean industry. He reaffirms that country’s importance as a trading partner and thus a frequent destination for Iowa business leaders. China has 10% of the world’s arable land and 20% of the global population, he notes.

“An estimated 300 to 400 million Chinese will join the middle class in the next decade, a number equal to the population of the United States,” says Leeds. “This increasing affluence will increase demand for protein.”

China, which wasn’t in the market for soybeans 15 years ago, currently accounts for 60% of global soybean imports.

“We’re honored to be part of the mission and looking forward to meeting Ambassador Branstad when we arrive in China,” Leeds says. “It’s truly a great day for agriculture to have Gov. Reynolds leading an agricultural delegation united in its mission of increasing market opportunities for Iowa farmers.”

Fish farming rapidly growing business in China
While in China, the delegation will make stops in Shanghai, Xi’an and Beijing. They’ll tour an aquaculture demonstration farm funded by Iowa soybean farmers and the soybean checkoff, attend industry briefings on China’s market and demographic trends, and participate in meetings with Chinese government officials. The group will also attend an evening reception hosted by Branstad.

Trade with China is a big deal for Iowa and U.S. soybean farmers, says ISA President Rolland Schnell. One of every four rows of soybeans grown in Iowa is destined for China. “It’s a vital market and an historic trip,” he says. “Relationships matter for the Chinese. Rarely do they do business with people they don’t know.”

Assuring the Chinese that we are good partners
ISA leaders joining Schnell and Leeds on the delegation are Jeff Jorgenson, District 7 director; Karey Claghorn, chief operating officer; Grant Kimberley, market development director; and Joe Murphy, senior communications manager.

“Personally, I want to gauge the strength of the Chinese market for soybeans,” says Kimberley. “While reading reports and listening to advisers can be helpful, you really don’t have a full scope of the market until you’re there, can verify the situation firsthand, and visit directly with the people who buy, process and trade agricultural commodities.”

He adds, “The delegation will further solidify with the leaders of China that we are partners in meeting mutual goals in food security, safety and sustainability.”

More on China
Additional facts about China include:

• The U.S. soy family (through national and state checkoff dollars) has invested $1.3 million in an In-Pond Raceway System technology.

• Since 2014, the China Ministry of Agriculture and private industry have invested over $200 million in pond renovation.

• China produces more farm-raised seafood than the rest of the world combined. In 2015, China increased production by 4% with a total of just under 50 million metric tons of aquaculture products.

• Total aquafeed use in China was around 36 million metric tons with the soy product use for aquafeed estimated at 8.8 million metric tons in 2015. This equals 408 million bushels of soybeans.

• China is by far the largest soybean importer projected at 83 million metric tons, or a little more than 3 billion bushels.

• U.S. market share of China’s soybean demand is 36.5% (nearly 1.1 billion bushels).

• About one out of every four rows of Iowa soybeans is exported to China.

• Soybeans are crushed into soybean meal in China to feed its 730 million pigs. Chickens are the second-largest consumer of meal. China is the world’s No. 1 egg producer. Soybean oil is needed for cooking.

For more information, visit iasoybeans.com.

Source: Iowa Soybean Association