World Grain - June 2015 - (Page 40)

FEATURE CHINESE REFORMS CREATING MARKET UNCERTAINTIES W hile exports of agricultural products, including grains, to China have grown dramatically over the past 20 years and trade is expected to grow further in the future, economic reforms that are being implemented in China are clouding nearer-term prospects for trade, said Fred Gale, a senior economist with the Economic Research Service (ERS) of the U.S. Department of Agriculture. Gale offered an in-depth look at changes in the U.S.-China farm trade relationship in an article in the current ERS publication Amber Waves. The pace with which China has emerged as the leading importer of U.S. farm goods has been breathtaking. As recently as the 1990s, China accounted for only 2% to 3% of U.S. farm exports. In 2012-14, China's share ranged from 16% to 18%, catapulting the country past the traditional leading customers of the United States - Canada, Mexico and Japan. Similarly, the United States is the leading exporter to China, accounting for 24% of the country's imports in 2012-13. The United States holds the top rank in China as a supplier of soybeans, cereal grains, distiller dried grains, cotton, meat, cattle hides and hay. Recounting this transformation of China into a major and broad importer, Gale cited the country's 2001 accession to the World Trade Organization (WTO) as a key turning point. While in the 1990s, China was a net exporter of soybeans, 40 by Josh Sosland Economic reforms clouding near-term prospects for U.S.-China agricultural trade, ERS economist says today it accounts for 60% of global imports with 40% of those coming from the United States. Domestic agricultural production in China has not suffered during this period of burgeoning imports. With its entry into the WTO, China established tariff rate quotas on imports of cereal grains and focused domestic farm-support policies on production of wheat, rice and corn. Overall grain output expanded each year between 2004 and 2014, an unprecedented string of increases, Gale said. Even with these extraordinary gains, China has emerged as a major importer of grains, he added. The key to this expanded appetite for grains has been growth in consumption of meat and dairy products, fueled by the country's economic growth during this period. "China's rapidly growing livestock sector has stimulated a growing demand for feed and forage," Gale said. "The counJune 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain - June 2015

World Grain - June 2015
Table of Contents
From the Editor-in-chief - Flour output data points to eating trends
Calendar of Events
News review - Ceremony marks opening of Whitewater Mill
ADM plans extensive improvements at Argentina port
Dangote Flour Mills hurts Tiger’s earnings
GrainCorp Oils increasing oilseed crushing capacity
Noble Agri appoints former ADM executive as CEO Jansen
Hovis names new CEO
Southern Africa nations facing food shortage
EBRD provides loan to Turkish edible oil producer
Gruma full steam ahead on European expansion
Oilseeds, grains push Wilmar earnings up 49%
GrainCorp earnings drop on smaller crop
ADM makes management appointments in key areas
ADM earnings surge on oilseed crush margins
Bunge returns to profit on soybean crushing
GrainCorp plans upgrades at 13 sites
Grain Market Review - Rice
Country Focus - Argentina
Technical Profile - Crustless pan bread favored in Argentina
Feature - Bridging a Gap
Feature - Chinese Reforms Creating Market Uncertainties
Feature - Investing in Food Security
Feature - Grain Storage and Handling Projects
Feature - IAOM Conference 2015
Feature - China, currency impacting markets
Feature - A new plan for Egypt
Feature - Team approach to marketing for Canadian grains
Canadian wheat customers share their experiences
Feature - IAOM MEA District Conference & Expo
Feature - Traders Utilizing Exchanges More than Ever
Supplier News
Product Showcase
World Grain Archive
Advertiser Index

World Grain - June 2015