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Chinese soy buyers worried about quality of U.S. imports
By MICHELE F. MIHALJEVICH
Indiana Correspondent

FORT WAYNE, Ind. — A group of soybean buyers from China arrived in the United States early last week to spend 10 days touring farms, grain elevators and terminals, with the goal of helping them make better informed purchasing decisions.

Their visit was off to a wet start as rain scaled back a visit to a grain farm in southern Allen County, Ind., during the delegation’s first full day in the Midwest. The 20 buyers had been scheduled to spend part of Sept. 19 viewing the soybean and corn fields at Wyss Farms Enterprises, but heavy rain during the day changed the plans, bringing most activities inside.

The tour was also scheduled to include stops in Illinois, Iowa, Minnesota and North Dakota.

“This is a good chance to build relationships,” said Don Wyss, chief marketing officer and assistant general manager for his family’s farm. “By coming to the farms, they can see firsthand the quality of our soybeans. Soybean producers are 100 percent committed to growing a top-quality product for domestic use and for end users around the world.”

Soybean buyers in China are concerned about differences in quality of the soybeans they saw during a visit to a local grain elevator versus what they see in soybeans exported from the U.S. into China, said Zhang Qiang. She is vice general manager for Jiusan Oils & Grains Industries Group Co. Ltd., an international trade corporation in Harbin, Heilongjiang province, China.

“We’re interested in how farmers grow soybeans, how they sell them and how committed they are to international markets,” she explained. “The problem is the quality is different. The soybeans coming to China are of lower quality.”

China imported 5 billion metric tons of soybeans last year, she noted, adding she expects an increase in imports this year. How many more soybeans China purchases from U.S. soybean growers depends on quality, she said.

“The soybean market is competitive in price and quality. The quantity (purchased by China) increased in the last year and will continue to increase in the future,” she said.

The delegation included a mix of buyers from private and state-owned companies. They represent more than 90 percent of the soybean buying power in China.

Growers shouldn’t be concerned the Chinese will decrease the amount of soybeans it buys from the U.S., Wyss said before the farm tour. “China is continuing to grow in its need for protein and livestock feed,” he noted.

“Their focus here is on overall crop quality and size.”

Had the delegation been able to get into the fields and closely examine the soybean crop, they would have found good quality but highly variable yields, Wyss stated. Local farmers dealt with late planting in a wet spring, and heat and dryness in July and August, he added.

Wyss stressed the family farm nature of his business during his presentation to the delegation. What started as a 120-acre farm in 1948 is now a 2,000-acre corn, soybean and wheat operation. His parents, wife and siblings are involved in various aspects of the business, he noted.

The Wyss family was asked by the Indiana Soybean Alliance (ISA) to host the stop on the tour; Don Wyss is a member of ISA’s soybean board. The U.S. Soybean Export Council, in cooperation with the American Soybean Assoc., United Soybean Board and the U.S. Foreign Agricultural Service, hosted the tour.

Members of the Wyss family have visited China, most recently this summer. Don Wyss saw hosting the delegation’s visit as a chance to return the hospitality his family benefited from there.
“It’s a nice way to reciprocate the treatment we received while we were in China. We’re privileged to be able to do that,” he said.
9/28/2011