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Trade mission to China tries to lay a foundation

 

By DAVE BLOWER JR.

Farm World Senior Editor

 

BEIJING, China — Building relationships overseas will build trade opportunities; and that, said Indiana’s agriculture officials last week, will open new markets for Hoosier farm products.

Lt. Gov. Sue Ellspermann and Ted McKinney, director of the Indiana State Department of Agriculture (ISDA), led a delegation to China in recent weeks with this goal in mind. They claim there is precedent for their belief.

"This is a long-term investment," Ellspermann explained. "These things don’t happen right away. For example, we are the strongest state in our relationship with Japan, and that relationship started 30 years ago. But that relationship has turned into thousands of jobs and opportunities.

"What we’re doing here could be worth tens of millions, hundreds of millions or even billions of dollars down the road. This is a small investment in what could help in the future."

Ellspermann said much of this trade mission has involved meetings with local, state-level and federal government officials in China. "Government plays an important role in opening the doors here," she explained. "They give permission for companies in China to work with companies in Indiana. They play an important role in bringing Indiana businesses to the table."

McKinney concurred. "This is a key starting point," he said. "It is critical you meet with their governments. They are very receptive. They are sincere in their interest when they meet with us … then you get to work with individual companies."

Representatives from several Indiana farm businesses and producer groups participated in this trade mission. On the first day, Keith Cole of Cole Hardwood in Logansport and the Indiana Hardwood Lumbermen Assoc. met with three furniture companies in China’s Sichuan Province.

Clyde Shaffer of Shaffer Genetics, Inc. in Randolph County discussed swine breeding, meat quality and more with Sichuan farm businesses. Sichuan is considered important for pork in China.

Although China is a major producer of farm products, it is also a country of 1.3 billion people. Ellspermann said when they speak to a mayor or vice mayor, they’re often talking to an administrator for a city of 8 million-10 million. "With 1.3 billion people, there is tremendous opportunity here," she added.

China’s agricultural output cannot keep up with its population, McKinney said. "They produce a lot of agricultural products, but that is still dwarfed by their population numbers," he said.

"I believe that’s why they have such an interest in what we have to offer."

Like many foreign markets, genetically modified (GMO) grains or other farm products are not allowed. China is studying the issue.

"They’re trying to work through the science part of it," Ellspermann said. "There are concerns that aren’t really science-based, and they’re interested in the science. We want to help them understand that we need (GMO technology) in order to provide the food we need."

McKinney said the Chinese officials they’ve spoken with have been receptive. "I think it’s clear that they have a high regard for food safety in the United States," he said.

Gov. Mike Pence visited China this spring in an effort to encourage foreign investment in Indiana with a focus to bring jobs back to the state. Different areas of China have been visited on this trip. This trade mission is primarily to promote Indiana agriculture, Ellspermann said, and it has been entirely funded through private sponsorship.

She noted Hoosiers should be patient for results. "The opportunities here are immense," McKinney added.

Ellspermann said, "This is the first agriculture trade mission to visit the Sichuan province. This province is really the pork capital of China. They’ve been very interested in the genetics we’ve brought, and they use a lot of our corn and soybeans."

The Indiana delegation exhibited 10 state agricultural products at the Beijing International Food Show on July 3. Ellspermann said the goal was to "put Indiana’s name out front at that event."

Among the popular members of the Indiana delegation with the Chinese is Harvey Gutwein of Gutwein Popcorn in Francesville.

"We are continuing what we’re calling ‘popcorn diplomacy,’" Ellspermann quipped. "With every handshake, Gutwein has been giving out a package of microwave popcorn."

7/8/2015