Iowa Soybean Association

Kirk Leeds, Grant Kimberley, Randy Van Kooten and Delbert Christensen examine this Chinese farmer's soybean crop in the Jilin Province

On this final day of the trade mission in China, the group visited a grain warehouse in Cailjia, two hours outside Changchun. It was interesting to hear a bit more about how the agricultural system here works.

The farmers among us were surprised to hear most farmers here bring their crops to the elevator at 30 percent moisture. Because they are guaranteed a price by the government, and need the money, they hurry to bring in their crop and collect their payments.

In the Jilin province, the government encourages farmers to grow corn. We saw soybeans grown in strips between corn crops, along road ditches and even in the narrow dividers between rice fields. Soybeans are clearly a valuable crop, but corn is king in this area of China. In this region they call corn “jade rice.”

James Tsao shows the farmer and his family where Iowa is located.

A special part of this trip has been the opportunity to meet farmers. Today we met a farmer and his family from the Jilin province. Actually, most of the village came out to greet us. It was a wonderful experience to meet with the farmer, look at his crops, and see the pride he has in his farm.

To hear an interview with ISA President Delbert Christensen about the farmer to farmer link, click here:

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“This visit puts our jobs in a whole new light as we harvest our crops,” says ISA President Elect Randy Van Kooten. “It’s important where the crop is going and that we’re feeding families here and across the globe.” To hear an interview with Randy Van Kooten, click here:

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Meeting this little boy makes it easy to think about the U.S. and China working together to feed the world

To hear the insights of ISA’s Director of Market Development Grant Kimberley on the farm visit and the hospitality of the Chinese people, click here:

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ISA CEO Kirk Leeds outlined five challenges that we need to solve in order to meet demand and make sure the growing global population has enough to eat, now and in the future:

• Continued increases in production
• Solve quality issues and increase protein and oil
• Continue improving infrastructure, like the expansion of Port of Gray’s Harbor in Washington
• Market access, reducing trade barriers, and
• Acceptance of biotech traits.

“It’s important that we view the expansion of trade in the American ag industry as vital,” says Cal Meyer, group vice president of AGP. “We have to strive to open markets and be competitive from the farm to the ag industry and meet customer demand.”

To hear Cal’s interview with Kirk Leeds, click here:

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To hear Kirk’s comments, click here:

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Now that we’re acclimated to our surroundings and the 13 hour time difference it’s time to go home. Our travels tomorrow will take the Iowa delegation to Des Moines via Changchun, Beijing, Vancouver and Minneapolis.

By all accounts, this trade mission has been a success. We’ve learned and listened, and talked about Iowa soybean production. And we gained a new appreciation for the vast potential of this market for Iowa-grown soybeans.

The women of the farm family asked to have their photo taken with me.

We’ve met new people. We’ve seen things we’ve never seen before. We’ve eaten different food. But yet, for all the different and new experiences we’ve had here, what strikes me most about traveling to China is how surprisingly similar we all are. We and our Chinese counterparts have a great deal to learn from one another, and we’ve appreciated the opportunity to experience the Chinese culture briefly during our time here.

To listen to Kirk Leeds’ interview with me on a bus to Changchun, click here:

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I’ll continue to post wrap-up information and additional photos on the blog upon my return home.

The trade team was greeted at the feed company with a welcome banner. ISA CEO Kirk Leeds highlights the part of the sign that says "Iowa"

Today the trade team traveled to Changchun, China, for the final two days of the trip. After a morning of travel, the group visited the New Fang Yuan feed company. This company has a long history of working with ASA-IM on feed technology, and in fact the plant manager had a photo of himself with a group visiting an Iowa farm.

When asked about the soybean meal the company uses in its feed rations, the manager said he prefers meal made from U.S. soybeans over those grown in South America or even China because of the higher protein content. The limiting factor, though, is that he can’t get enough U.S. soybeans.

The big news both here and in the United States lately has been China’s first shipments of U.S. corn. A report in China Daily (the English language newspaper here) says increases in rice and corn imports had raised concerns that international grain prices would go up. The International Food Policy Research Institution maintains that grain imports are a “temporary phenomenon that will help reduce domestic prices.”

ISA CEO Kirk Leeds says that industry predicted that China would soon import corn, and industry was correct even though the government would disagree. However, he doesn’t see that there is any reason to expect the trend of importing U.S. soybeans and corn will end anytime soon.

“It’s unrealistic to expect that China will be able to avoid relying on exports of corn and other feedstuffs until the country adopts crop technology that will allow farmers in China to increase yields,” says ISA Director of Market Development Grant Kimberley. “Even then, it’s unlikely that, due to increased demand for protein, that China will be able to avoid importing grain.”

In the short term, whether or not China will continue to import corn will depend on the country’s harvest this fall. The China Daily report says the Heilongjiang region is on track for a good harvest despite weather challenges.

Peter Mishek of Mishek Inc & Associates says that soon China will have other challenges on its hands. “I believe we’re seeing the end of the surplus labor market in this country. The city is soaking up all the young people,” says Mishek. “With urbanization, there are very few 20 to 30 year olds on farms in this country anymore. Demographics are going to prompt changes like increased mechanization and fewer farmers controlling more acres.”

For the full interview with Mishek, click here:

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Tomorrow the group is scheduled to visit the Cailjia Grain Warehouse and Chinese farms near Changchun.

Port officials used a scale model to explain the features of the facility

Today the trade team visited one of the largest grain export and import ports in China, Dalian. It was the first time U.S. farmers have visited the Chinese port.

The main purpose of the facility is to transport food and other goods from north to south – essentially serving as a transfer station. According to COFCO officials, Dalian is a very important strategic location for COFCO. However, the port also takes in imports from countries like the United States and Brazil, and exports to countries like North and South Korea.

“Just a few years ago we were exporting soybeans and now we are adjusting to the change of importing them,” said Zhu Shi Liang, general manager of the PDA Bulk Grain Terminal Company. “Our soybean imports are increasing every day, so in a sense we are already working together.”

The port is huge and encompasses six different operations, the smallest of which is grain handling. The facility can handle 725,000 metric tons of grain, which translates to the capacity to store 26.6 million bushels of soybeans.

According to Gary Nelson, executive director at the Port of Gray’s Harbor in Aberdeen, Wash., he believes the port at Dalian is unmatched by any port on the west coast of the United States. To hear Nelson’s comments, click here:

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Representatives from the Iowa Soybean Association, AGP and Port of Gray’s Harbor met with the port officials and representatives from COFCO to attempt to develop relationships that would encourage a preference for U.S. soybeans.

“The scope and size of the market demand here is unbelievable,” says Grant Kimberley, director of market development for the Iowa Soybean Association. “It’s important for ISA to be here to culture and develop relationships to make sure U.S. soybeans are the market of preference for Chinese buyers.” To hear his comments in their entirety, click here:

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Tomorrow the trade team hops on a plane again, this time to travel to the last city on the itinerary: Changchun. The group anticipates seeing a feed company and farms in the region before heading home Sunday.