Building Relationships Across the Pacific Soy agreements important for U.S. and Chinese interests. STORY BY JEFF HUTTON AND KRISS NELSON | PHOTOS BY JOSEPH HOPPER
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hile the geopolitical climate between the United States and China has been strained, the relationship between Iowa’s soybean farmers, agribusinesses and Chinese buyers continues to flourish. In October 2023, American and Chinese entities signed multiple agreements worth billions of dollars. It also signified continued relationships benefiting soybean producers and Chinese consumers. During an event at the World Food Prize Hall of Laureates in Des Moines, China’s Hopefull Grain & Oil Group signed two purchase agreements with Archer-Daniels-Midland Co. (ADM) and Olam to purchase $3 billion worth of U.S. soybeans over the next three years. A delegation of government officials and business leaders led by Hebei Vice Governor Jin Hui and leadership from the Iowa Soybean Association (ISA) witnessed the signing. China’s soybean imports grew from 20 million metric tons in 2004 to 100 million tons in 2020, with more than 30 million tons sourced from the United States, says Li Chengfeng, vice-general manager of the international business department at Hopefull. Li says Hopefull’s soybean imports grew 500% — to 5.85 million tons — from 2012 to 2022. “Of these, 3.06 million tons came from the United States, and one out of every five ships of soybean deliveries comes from Iowa,” he says.
More agreements Other Chinese agriculture companies and American commodity exporters signed purchasing agreements and contracts at a separate event.
Kenneth Quinn, president emeritus of the World Food Prize Foundation, stands alongside Hebei Vice Governor Jin Hui and ISA President Suzanne Shirbroun inside the World Food Prize Hall of Laureates.
22 | JANUARY 2024 | IASOYBEANS.COM
During the U.S.-China Sustainable Agricultural Trade Forum in Des Moines, Chinese companies signed 11 purchase agreements with U.S. exporters. Among the companies that signed agreements were ADM with Bohi Industry; ADM with China Agri; ADM with Fuzhiyuan Feed Protein (Wilmar International); Bunge with Sinograin Oil; Cargill with Sinograin Oil; CHS with Bohi Enterprises; CHS with Sinograin Oil; COFCO International with China Agri; COFCO Agri with Zennoh Grain; Shenzhen Gem with Hangtung Resources; and Zennoh Grain with Bohi Industry. The agreements highlight the importance of trade to U.S. soybean producers and consumers around the world. Consider the following: • Soybeans and soy products are America’s leading agricultural export with an export value of more than $34.37 billion in 2022. • ISA increases demand and builds customer preference for U.S. soy globally. ISA partners with the American Soybean Association (ASA) and the U.S. Soybean Export Council (USSEC) to accomplish these goals. • Every checkoff dollar spent on international marketing generates $17.95 in return value to growers, according to research by Texas A&M University. • Global soybean demand is up 264% since 1990, due in part by the work of U.S. soybean organizations and international marketing export programs over the past 30 years.
Beyond financial While the bottom line will always be important to both exporters and importers, the agreements between the Chinese and American soybean producers and businesses reinforces the need for strong relationships. “Just remember these three words: Peace through agriculture.” That was the message from Kenneth Quinn, the president emeritus of the World Food Prize Foundation, who was among the many dignitaries to attend the signing event, co-organized by ISA, USSEC, the U.S. Grains Council, and the China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce & Animal By-products (CFNA). Xie Feng, Chinese ambassador to the United States, says the agreements represent immense value between Iowa soybean farmers and the Chinese people. “People are the foundation of a nation, and food is of paramount importance,” he says. “The China-U.S. agricultural cooperation is a rich land with bright prospects. The contracts signed today are multiple billions in value. Let us sow more seeds of cooperation on the fields of hope.” The ambassador says Iowans, in particular, represent what is good about America.
