The rapid growth of China’s agricultural output has begun to be outpaced by demand, despite strong production gains as a result of market-based reforms instituted 30 years ago. This, in conjunction with the country's dramatic economic growth, reportedly has encouraged China to open their markets to corn imports.
U.S. Grains Council sources suggest six additional cargos of U.S. corn (250,000-300,000 metric tons or 9.8-11.8 million bushels) may have been booked for China delivery.
"For the past 30 years, the U.S. Grains Council has had a presence in China, working with local producers, feed millers and manufacturers to demonstrate the value and cost effectiveness of U.S. corn and their co-products," said Rick Fruth, U.S. Grains Council chairman and Ohio corn farmer. "We are pleased to see that these market development efforts by the Council are being realized in corn sales to China. We anticipate China to be a long-term importer of U.S. corn and co-products."
Thomas C. Dorr, U.S. Grains Council president and CEO, says food security with our trading partners is dependent on continuous, transparent and stable trade relationships.
"We are hopeful the trade relationship with China will mimic the successful, longstanding relationships the United States shares with other parts of the world," Door said. "This is indeed encouraging news as U.S. corn growers proceed at one of the most rapid paces ever to plant what appears could be another record crop."