China takes in U.S. soybean, corn

China takes in U.S. soybean, corn    The American Soybean Association (ASA) highlighted the importance of the China export market for U.S. soybeans during a hearing before the U.S. International Trade Commission on Tuesday.
   The St. Louis-based trade group said in 2009 the value of U.S. soybean exports to China reached a record $9.2 billion. U.S. soybeans represent more than half of the total value of U.S. agricultural exports to China.
   “More than half of the world’s soybean exports are purchased by China,' testified ASA Vice President Randy Mann, who is chairman of ASA’s Trade Policy and International Affairs Committee. 'The 22 million tons of U.S. soybeans expected to be exported to China in 2010 represent over 50 percent of all U.S. soybean exports and 25 percent of the U.S. soybean harvest. In other words, one of out of every four rows of soybeans grown in the U.S. is exported to China.”
   As a result of substantial economic growth, more Chinese consumers can afford a higher standard of living, including more protein and vegetable oil in their diet. China’s ability to supply these needs through increased production of soybeans and other feeds and oilseeds is limited, so most of the increase in demand will be filled by imports.
   Yet trade issues related to U.S. soybean exports remain to be addressed between China and United States, Mann said.
   One area that could impact China’s imports of U.S. soybeans is a lack of understanding concerning quality and safety of U.S. soybeans and soybean products. Chinese authorities have from time to time been concerned that some shipments of soybeans, due to their coloring, may include planting seed that is coated with a pesticide treatment. However, in some instances, soybeans are naturally discolored during growing and harvesting.

Vilsack

   “ASA is very pleased with the recent announcement by U.S. Agriculture Secretary Tom Vilsack that China and the U.S. have agreed to address inspection, quarantine, and quality and safety of U.S. soybean exports to China,” Mann said.
   Another issue that has affected U.S. exports of soybean products is China’s requirement of a phytosanitary certificate for all imports of soybean oil. Due to extensive processing, which eliminates any risk of soybean oil harboring injurious plant pests, the U.S. does not require or issue a phytosanitary certificate for imports of soybean oil, and international standards do not call for a phytosanitary certificate on soybean oil.
   “For several months, USDA officials have been working closely with Chinese officials to identify an alternative approach that would be acceptable to both countries,” Mann said. “We are appreciative that an interim solution to allow U.S. exporters to sell soybean oil to China has been developed, and that U.S. sales of soybean oil have taken place in recent weeks. We are hopeful that a long-term solution where no phytosanitary certificate is needed can be agreed upon by U.S. and Chinese agencies in the future.”
   Another key area that has affected China’s imports of U.S. soybeans in recent years is its policies regulating registrations of agricultural commodities derived through biotechnology. China’s regulatory approval process for commodities containing biotech traits sometimes has been unpredictable and opaque, causing concern in the U.S. soybean industry about obtaining trait approvals prior to commercialization. ASA is actively supporting efforts to encourage China to allow applications at the time they are made in the U.S. and other countries, the ASA noted.
   “Fortunately, China has embraced biotechnology for its own agricultural development,” Mann said. “This acceptance, and its importance as the largest importer of biotech soybeans, makes China an ideal and necessary partner in addressing and resolving current and future biotech-related issues.”
   In addition, ASA expressed that Differential Export Taxes (DETs) used by Argentina preclude U.S. soybean oil exporters from effectively competing in the Chinese market on a long-term basis. China’s market for soybean oil has been dominated by Argentina primarily because of the subsidies that Argentina provides to its oilseed processors and exporters through the use of DETs.
   To improve its presence in China, ASA established an office in Beijing 28 years ago.
   'ASA International Marketing has undertaken a variety of programs to educate the Chinese on the economic, nutritional and other benefits of utilizing U.S. soybean meal for animal feed and soybean oil for human consumption,' Mann said. 'Our partners in China range from feed mills, livestock and marine aquaculture producers to soyfood companies. Our efforts have clearly paid off.”
   In other news, the U.S. Grain Council said that for the first time in nearly 15 years, a shipload of U.S. corn arrived in China. The vessel, carrying 55,000 metric tons of U.S. No. 2 yellow corn, arrived at the Longkou Port in Shandong Province on June 21. The vessel cleared China Customs quickly and started unloading on June 22.
   'The cooperation throughout the supply chain — from the U.S. supplier, to the vessel agent, to the port management, to the buyer, to the customs office, to the inspector and finally to the feed mills — appears to be very good,' said Dan Keefe, U.S. Grain Council marketing specialist, in a statement. 'This is a very positive indication for future corn imports.'
   The discharging operation is expected to be completed in four days, weather permitting.
   Another vessel of U.S. corn is due to discharge at the Chinese port in July, the council said. ' Chris Gillis