U.S. Soy Growers Looking for New Buyers
USAgNet - 01/10/2019
America's soybean industry is scrambling to find new international trading partners after the trade war with China cost the industry it's single largest buyer -- plummeting prices and devastating farmers.
According to UPI, China purchased around 30 percent of all the soy grown in the United States before the terriffs started -- and 60 percent of the exported soy. That stopped suddenly last summer when China levied a 20 percent tariff on U.S. beans. The move
was retaliation for similar tariffs imposed by the Trump administration.
The enduring trade dispute mean Chinese buyers have purchased a fraction of what they normally would, leaving millions of bushels of beans sitting in grain bins around the country with nowhere to go.
The situation has exporters urgently looking for other nations to buy that soy, reports UPI.
The problem they're running into is there simply isn't enough worldwide demand for soy to make up for the loss of China. To fill the void, exporters say, they must create demand for soy in countries where there is none.
U.S. soy groups are now focused on creating similar relationships with farmers in other developing countries. In Asia, they're looking at places like India, Pakistan and Bangladesh. They're also looking at African nations like Ethiopia and Liberia.