TIPTON, IND. - A nationwide
emphasis on improving the diet of
its citizens will transform the
People’s Republic of China from a
feed grain exporter to a significant
importer by the next decade-and
American farmers are in a good
position to supply that grain,
participants in a United States
Feed Grains Council (USFGC)
trade mission to that country
learned recently.
Trade team members were
USFGC officers, feed grain
producers, USDA Foreign
Agriculture Service officials, and
several farm media members.
“This trade mission gave par
ticipants a comparison of what the
Council has done to build demand
for feed grains in Japan with the
tremendous potential in China,”
says Bob Wichmann, president of
the Eastern Division of'Pioneer Hi-
Bred International, Inc.
In China to dedicate the first
joint venture with the National
Feedstuffs Corporation, trade
team members learned that a
premix feedmill located in Nanjing
is the first of 400 similar feedmills
to be built in the next five years.
Approximately 20 feedmills are
under construction now.
“The Council supplied
technology and equipment, and the
Chinese government supplied the
other resources to help put
together this pilot feedmill which
will be used to train people for
additional mills the government
plans.
“With the government’s desire
to improve the diets, animal
protein is going to be very im
portant, but the Chinese have a
severe shortage of premix feed
mills to handle the increased
livestock production planned in
their five year program,” Wich
mann explains.
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Pioneer exec sees China as potential grain market
China currently has the feedmill
capacity to utilize 12 million tons of
coarse grains each year-up from
one million tons in 1980. This
capability will rocket to 50 million
tons by 1990 if animal production
increases as planned.
Although the Chinese now export
grains because they need foreign
currency and do not have the
storage capacity, roads and
railways necessary to move grain
from northern crop to southern
animal production areas, they
expect to be purchasing feed
grains within a short period. China
has the potential to purchase 530
million bushels of grain each year
under its current program.
Wichmann says there was very
little time for sightseeing during
the trade mission, which was
sponsored in part by a grant from
Pioneer Hi-Bred International,
Inc.
“The biggest part of our time
was spent with members of the
Chinese government. Most of the
time we talked about the potential
we have to supply their country
with the feed grains we felt are
going to be necessary as a result of
their desire to improve the diets of
the Chinese people.”
Chinese leaders expressed
concern with the growing
protectionist movement in the
United States and impending
restrictions on textile imports
during those discussions, he notes.
“It was a concern to them that
protectionism would enter into it
and that certainly would be
detrimental to us developing a
strong trade relationship. We also
were made aware that the strong
U.S. dollar had an affect on the
price of our commodities; that our
commodities were not as com
petitive in the world market as
they had been.”
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Wichmann says the USFGC
trade team countered by stressing
America’s track record in
assisting Japan and other coun
tries with agricultural develop
ment.
“China is looking at a substantial
amount of production by 1990 and
beyond, and there are few coun
tries that could be as consistent a
supplier of quality grain as the
United States. And hopefully, our
government will make a com
mitment to reduce the budget
deficit and would not always be in
the position where our com
modities would be higher priced
than commodities from other
countries.”
Trade team members left the
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Experts in poultry feeding.
country feeling positive about the
future for American feed grain
sales.
“Many of us felt that there was a
tremendous potential, but it was
going to take time and patience.
The Chinese gave us the im
pression they are eager for
technology and eager for help.
Hopefully, the country that can
supply that and can develop a good
relationship with many of those
key people will be in a position to
see that trade expand.
“If the government can come
close to reaching that five year
goal, there would be a real in
centive for us to continue to work
hard to be the one that supplies the
bushels they’ll need,” Wichmann
concludes.
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