St. Louis,
Missouri
December 18, 2003
The American Soybean
Association (ASA) today signed a cooperation agreement with
representatives of the China Chamber of Commerce of Import and
Export of Foodstuffs, Native Produce & Animal By-Products (CFNA)
in support of continued U.S. soybean exports to China. The
ceremony was held at the Chicago Board of Trade.
"We have
just signed an agreement on cooperation between CFNA and ASA, in
which we agreed to begin a wide range of mutually beneficial
exchanges and activities, including the exchange of delegations
between our two organizations," said ASA Chairman Dwain Ford, a
producer from Kinmundy, Ill. "As a representative of U.S.
soybean farmers, I can tell you that we look forward to a long
and fruitful relationship."
Among the
distinguished delegates from
China
were Mr. Liao Xiaoqi, Vice Minister of Commerce; Mr. Cao Xu Min,
President of the CFNA; Mr. Xia Hongmin, Deputy Administrator of
the State Administration for Quality Supervision, Inspection and
Quarantine; and Mr. Deng Qinghai, Deputy Director General of
Development and Planning, from the Ministry of Agriculture.
ASA’s
mission in China has always been one of working closely with
Chinese aquaculture, livestock, feed milling, and soybean
processing industries to increase the demand and preference for
U.S. soybeans within these industries. This work not only
increased demand for U.S. soybeans, but also resulted in the
production of better and more food for the Chinese people.
Long before
China imported soybeans, ASA producer-leaders decided to open an
office in China to begin building demand for U.S. soybeans. That
was 21 years ago. More recently, ASA’s 25,000 farmer-members
were politically active in supporting
China’s accession to the World Trade Organization (WTO),
and successfully urged the U.S. Congress to grant China
Permanent Normal Trade Relations (PNTR) status.
China is now the
United States’
largest customer for soybeans and it is a growing market. In the
marketing year that ended August 31, China purchased nearly 7.7
million metric tons (283 million bushels) of U.S. soybeans with
an estimated farm-gate value of $1.6 billion. In the current
marketing year that began on September 1, 2003, China already
has purchased over 7.35 million metric tons with a farm-gate
value of $2 billion, and ASA anticipates more business will be
completed over the coming days and months.
"To the
soybean farmer, these are very exciting trade figures," Ford
said. "China is and will continue to be a critical market to the
American soybean farmer. It is ASA’s commitment to continue to
work with China to further build demand and preference for
U.S.
soybeans."
Since
opening the first office in 1982, the scope of ASA’s work in
China has grown from technical services to livestock and feed
production to the current important work with China’s livestock
producers, feed millers, aquaculture industry, soybean
processors, and the traders and distributors who supply their
protein needs. Today, ASA has a staff of highly respected
livestock, aquaculture, feed milling and marketing experts
located in offices in Beijing and Shanghai. ASA’s activities to
expand international markets for U.S. soybeans and products are
made possible by producer checkoff dollars invested by the
United Soybean Board and various State Soybean Councils, as well
as by cost-share funding provided by USDA’s Foreign Agricultural
Service.
While U.S.
soybean farmers have greatly benefited from ASA’s work in China,
so have Chinese consumers. Today, imports of soybeans from the
United States allow China to keep meat and vegetable oil
supplied and prices under control for Chinese consumers.
"ASA’s work
in China has created additional demand in China from the
livestock and aquaculture industries, and Chinese soybean
producers also have benefited from this additional demand
building," Ford said. "ASA is proud of the role it has played in
helping make China the number one export market for U.S.
soybeans."
Ford said
that the road to this point has been both rewarding and
challenging. At times, U.S. soybean exports have faced issues
such as trade restrictions, import permit delays, confusion over
biotechnology regulations and problems with transparency. These
issues have hurt both China and the United States. Ford said
that future prosperity lies in ensuring that the major buyers of
U.S. soybeans in China can operate knowing that they have a free
and unencumbered flow of soybeans from the United States.
"As soybean
producers, we need to know that the markets that we produce for
will be there when we harvest," Ford said. "If we can work under
those circumstances, we will all be prosperous. It is my hope
that this delegation, and the joint agreement we just signed,
will help ensure that soybean trade between our two great
nations continues unencumbered and we can operate our businesses
efficiently without having to focus on trade policy issues." |