China to Import More US Farm Goods in 2014
Dean M. Bernardo | | Apr 09, 2014 02:06 AM EDT |
Despite the sometimes shaky relations between the United States and China, the world's largest and second largest economies, the two nations are interlocked in a trade relation that feeds and benefits the people of China, and makes profits for American farmers.
China's demand for agricultural goods like meat, corn and soybeans is expected to grow in 2014 and its primary supplier are farms across the United States.
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It was only in 2013 when the U.S. became the largest supplier of farm goods to China.
China's growing demand has pushed its agricultural purchases from the U.S. to US$ 23.5 Billion in 2013, according to a report by the U.S. Department of Agriculture (USDA).
The Agriculture Department projects that China will continue to become the leading market for U.S. farm products with an estimated US$ 25 Billion (155 Billion yuan) of goods shipped in 2014.
The Chinese government's subsidies on seeds and fertilizers to farmers resulted in minimal government technical support and lower purchase prices for rice and soybean, pushing farmers to focus on producing more profitable grain staples.
The high prices of local corn, rice and soybean paved the way for cheaper imports like those coming from the United States.
In 2013, China imported a total of 84 million metric tons of agricultural produce from all over the word. Among the top imports are 14 million tons of wheat, corn and rice, providing nearly 2.6 percent of the country's cereal requirements.
Soybean imports rose by 8.6% in 2013, based on a year-on-year survey, for a total of 63.38 million metric tons from Brazil and United States. Foreign imports of soybean contributed to nearly 80% of China's national consumption.
Some 11.7 million metric tons of wheat and 124 metric tons of corn imported from the U.S. went into the Chinese livestock sector, an increase of 7.2 percent for wheat, and 5 percent for corn from 2012.
Analysts believe that China will need to import more products to ensure the country's grain security and supply the growing domestic consumption.
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