A lot has changed since Beaver Creek farmer Jim Willers made his first trip to China on behalf of the Minnesota Soybean Research & Promotion Council (MSR&PC) more than a decade ago. Buildings and roadways have become more modern, pollution has declined and food safety and security has dramatically improved. One thing that has remained the same, however, is the strong relationship between China and the U.S. Soybean Export Council (USSEC).
“Even as U.S. soy purchases to China have declined over the years, it shows that we still care about our customers and that we stand behind the product that we’re selling,” said Willers.
Willers joined USSEC on behalf of MSR&PC on a trip to China July 7-12 to attend the 15th annual International Cereals and Oils Conference and visit with soy users and purchasers. The purpose of the trip was to help the key importers, crushers and soybean end users gather first-hand information on the U.S. new crop production outlook to ultimately aid them in making better purchasing decisions and manage market volatility.
As a soybean farmer, Willers said the industry folks are always curious about the progress of this year’s crop.
“They always want to know about yield and quality and we’re quick to let them know that there will be plenty of soybeans available if they’d like to purchase more,” Willers added.
China currently imports around 112 million metric tons (MMT) of soybeans with about 27 MMT coming from the U.S. That’s approximately 24% of all their soybean imports, and while they are still the top importer of U.S. soybeans, that number has declined steadily over the past couple of years as they continue to purchase more from South America.
Willers and the rest of the USSEC group spent their journey in Nanjing, which is just northwest of Shanghai on the eastern edge of China. They visited poultry producers, aquaculture farms and soy crushers. Willers stated that he was most impressed with the very modern approach of the Lu Kou Poultry company, which was a testament to how the industry is evolving in China.
“Their whole process of keeping the chickens comfortable was very impressive and everything was automated. They also packaged their eggs in a very unique and fashionable way that allowed the company to sell them at a premium to wealthier customers,” said Willers.
According to USSEC, the poultry industry utilized 24.43 MMT of soy in 2022 and is expected to grow by more than 10% by year 2030. Continuing urbanization and rising per capital income along with a demand for healthy and quality foods and increasing demand for precision animal nutrition are among the potential opportunities for U.S. soy.
This was Willers’ third visit to China since being elected to the MSR&PC board more than twenty years ago. He retired from the council in June and this trip was his final activity on behalf of MSR&PC.
Joining Willers in China was Janna Fritz, vice chair of USSEC, Suzanne Shirbroun, president of Iowa Soybean Association, Guy Allen, senior agricultural economist at Kansas State University and Ryan Olson, industry affairs manager at USSEC.
