BEIJING, China — Iowa Soybean Assoc. (ISA) officials and state agribusiness leaders recently returned from a nine-day trade mission trip to Communist China, July 23-Aug. 1, with the goal of developing relationships and consumer preference with current and potential buyers, and users of Iowa and U.S.-grown soybeans.

"Iowa soybean growers play an integral part in keeping China’s 1.3 billion people fed, supplying soybeans for livestock feed and cooking oil," wrote Matthew Wilde, ISA senior writer, in his daily China travel blog. "From what I and others heard from Chinese government and agribusiness officials, and witnessed in Beijing and outside the capital, that role will only intensify," he added.

The ISA delegation included President Brian Kemp, who farms near Sibley; President-elect Tom Oswald, who farms near Cleghorn; CEO Kirk Leeds; Market Development Director Grant Kimberley; and Wilde.

Currently, China’s population is 1.35 billion, nearly four times that of the United States (315 million). As the largest export market for U.S. soybeans, China accounted for 1.7 billion bushels during the 2012-2013 marketing year, representing approximately 56 percent of all U.S. soybean production.

Last year, the United States exported nearly 775 million bushels of whole soybeans to China, records show, Wilde wrote. "Since Iowa is traditionally the top soybean producer nationwide, it’s reasonable to assume a good portion came from the Hawkeye State," he added.

According to ISA and Chinese officials, Chinese soybean imports are expected to reach a record 70 million metric tons by the end of the current marketing year, with U.S. soybeans accounting for about half of that total. Soybean demand could reach 80 million metric tons within five years.

ISA officials said China’s soybean exports exploded during the past decade after the nation made a strategic decision to raise more grain, such as corn, and import soybeans. In the early 1990s, China imported virtually no soybeans, and now it is by far the world’s largest buyer, Wilde wrote. Double-digit percentage increases were common during the past decade.

"The growth is out of (beyond) expectations of everyone, including the government," Li Xirong, secretary general of the China Feed Industry Assoc., said through an interpreter. "U.S. soybean growers probably expected China wouldn’t import so many soybeans."

Kemp said ISA representatives are working to build that market share. "There are 30 people from Brazil here doing what we’re doing," he said. "We have to be at the table. China is working on moving the rural population to the cities. The standard of living is increasing. The people want to eat better and have more protein, whether it’s through chickens or hogs."

While in China, ISA delegates visited several ports, processors, livestock farms and feed mills, met with Chinese agricultural and business officials, and obtained updates on key issues including soy demand forecasts and implications of China food policy on U.S. grain and livestock imports. By July 25, the ISA delegation met with the representatives of the U.S. Soybean Export Council (USSEC); China’s Ministry of Agriculture and its Division of GMO Biosafety and IPR Department of Science, Technology and Education; China Feed Industry Assoc.; China Animal Agriculture Assoc.; State Administration of Grain; China Oilseed & Feed Corp. (COFCO); and Monsanto.

Chang Muping, vice president and general manager of COFCO’s Risk Management Division, and fellow employees visited Iowa in the past – especially the ISA’s fall harvest tour. Through an interpreter, Muping said periodic, face-to-face meetings with farmers and ISA officials gave him confidence to buy Iowa and U.S. soybeans. In addition, the delegation visited with Chinese farmers involved in the country’s growing dairy industry through a first-ever trip to the province of Inner Mongolia.

"Unlike Iowa, where soybeans and corn are king, Chinese farms are highly diversified," Wilde blogged on July 31. "They resemble Iowa State University Extension and Outreach research farms. A few rows of corn, soybeans, peanuts, tea and other crops are often intermixed together. Growth stages vary as well. It’s not uncommon to have fruit trees, like apples and pears, planted among row crops."

Oswald said: "The decisions they make may seem illogical to us, but they apply here. We see the small plots and that probably won’t change for decades. We have to understand their needs to better serve their market."

Toward the end of the trip, Chinese government and industry grain experts told the ISA delegation that soy imports will continue to increase, "though they may not skyrocket as rapidly as in the past." (On July 30, ISA delegates held a teleconference with reporters to provide an update on their trip.) "Overall, soybean demand will keep going up," Kimberley said. "Another 300 million people are expected to join the ranks of the middle class in 5 to 10 years. They are going to go from eating meat once a week to three to four times a week."