Kansas, South Dakota Corn Producers Examine Export Potential of China
Published: Feb 23, 2011
In any discussion related to U.S. agricultural exports, China is certain to have a prominent place in the conversation. Just ask David Fremark, USMEF Executive Committee member and chairman of the South Dakota Corn Utilization Council (SDCUC), who recently visited this key market.
“In agriculture, every move seems to depend on what China does – whether they are purchasing grain, purchasing pork or potentially purchasing our beef,” Fremark said. “The ramifications of what China does seems to be all-encompassing for agriculture these days. So that was the original impetus for our trip, to learn more about how the markets work there.”
“In agriculture, every move seems to depend on what China does – whether they are purchasing grain, purchasing pork or potentially purchasing our beef,” Fremark said. “The ramifications of what China does seems to be all-encompassing for agriculture these days. So that was the original impetus for our trip, to learn more about how the markets work there.”
Fremark was part of a delegation of leaders from the SDCUC and the Kansas Corn Commission (KCC) who toured agricultural operations in the Beijing area. They also met with several importers and traders and gained a feel for the rapid growth of China's supermarket and restaurant industries. The group also visited Hong Kong and Macau, two areas that serve as significant economic hubs for international trade.
“We all know about China having 1.3 billion people - I get that, I was ready for that,” Fremark said. “But what really struck me most about the trip was the large number of people in the region who seem to have a very high standard of living. That, I wasn't ready for. It really surprised me.”
Fremark said this experience made him more optimistic about potential demand for U.S. beef, if the U.S. and China can agree to terms that will resume beef trade.
“Certainly there are still a lot of people living in poverty in China, but their middle and upper classes are growing rapidly,” he said. “If and when we get the beef market open, those are the people who will be buying our product.”
Fremark complimented the USMEF-Hong Kong/China staff for helping assemble a very educational and information-packed week of meetings and activities.
“Our briefing at the U.S. embassy with the agricultural attaché, the numerous supermarket and restaurant visits, the meetings with buyers and others active in the meat industry – those sessions were all first-rate and extremely informative,” he said. “The market intelligence we gained on this trip is first-hand, straight from the people USMEF has on the front lines living and breathing this region's meat trade every single day. It just doesn't get any more accurate than that.”
KCC Executive Director Jere White shared Fremark's observations and enthusiasm for the growing range of trade opportunities in China.
“It was really a mission designed to give U.S. producers a better understanding of the opportunities presented by these emerging Asian markets, and it was certainly a great learning experience,” White said. “Not so much a technical assessment of the market, but a chance to gain a greater appreciation for these changing economies and what these changes mean for the future of U.S. agriculture.”
While China holds vast trade potential because of its large population, White noted that Hong Kong offers tremendous opportunities of its own.
“Hong Kong may not be the largest population center,” he said. “But with the upscale population that lives there and the high-end restaurants and retail outlets – the opportunity for U.S. red meats to thrive in Hong Kong is quite obvious from the time you first set foot there.
“What the U.S. corn industry really needs is to see profitability throughout the entire chain of use,” White said. “And because corn's not priced the way it was 10 years ago, beef and pork producers need these value-added markets if they are going to remain viable users or corn. It's only when those sectors are profitable that we in the corn industry can also enjoy the opportunity for long-term profitability.”
“We all know about China having 1.3 billion people - I get that, I was ready for that,” Fremark said. “But what really struck me most about the trip was the large number of people in the region who seem to have a very high standard of living. That, I wasn't ready for. It really surprised me.”
Fremark said this experience made him more optimistic about potential demand for U.S. beef, if the U.S. and China can agree to terms that will resume beef trade.
“Certainly there are still a lot of people living in poverty in China, but their middle and upper classes are growing rapidly,” he said. “If and when we get the beef market open, those are the people who will be buying our product.”
Fremark complimented the USMEF-Hong Kong/China staff for helping assemble a very educational and information-packed week of meetings and activities.
“Our briefing at the U.S. embassy with the agricultural attaché, the numerous supermarket and restaurant visits, the meetings with buyers and others active in the meat industry – those sessions were all first-rate and extremely informative,” he said. “The market intelligence we gained on this trip is first-hand, straight from the people USMEF has on the front lines living and breathing this region's meat trade every single day. It just doesn't get any more accurate than that.”
KCC Executive Director Jere White shared Fremark's observations and enthusiasm for the growing range of trade opportunities in China.
“It was really a mission designed to give U.S. producers a better understanding of the opportunities presented by these emerging Asian markets, and it was certainly a great learning experience,” White said. “Not so much a technical assessment of the market, but a chance to gain a greater appreciation for these changing economies and what these changes mean for the future of U.S. agriculture.”
While China holds vast trade potential because of its large population, White noted that Hong Kong offers tremendous opportunities of its own.
“Hong Kong may not be the largest population center,” he said. “But with the upscale population that lives there and the high-end restaurants and retail outlets – the opportunity for U.S. red meats to thrive in Hong Kong is quite obvious from the time you first set foot there.
“What the U.S. corn industry really needs is to see profitability throughout the entire chain of use,” White said. “And because corn's not priced the way it was 10 years ago, beef and pork producers need these value-added markets if they are going to remain viable users or corn. It's only when those sectors are profitable that we in the corn industry can also enjoy the opportunity for long-term profitability.”
In any discussion related to U.S. agricultural exports, China is certain to have a prominent place in the conversation. Just ask David Fremark, USMEF Executive Committee member and chairman of the South Dakota Corn Utilization Council (SDCUC), who recently visited this key market.
“In agriculture, every move seems to depend on what China does – whether they are purchasing grain, purchasing pork or potentially purchasing our beef,” Fremark said. “The ramifications of what China does seems to be all-encompassing for agriculture these days. So that was the original impetus for our trip, to learn more about how the markets work there.”
“In agriculture, every move seems to depend on what China does – whether they are purchasing grain, purchasing pork or potentially purchasing our beef,” Fremark said. “The ramifications of what China does seems to be all-encompassing for agriculture these days. So that was the original impetus for our trip, to learn more about how the markets work there.”
Fremark was part of a delegation of leaders from the SDCUC and the Kansas Corn Commission (KCC) who toured agricultural operations in the Beijing area. They also met with several importers and traders and gained a feel for the rapid growth of China’s supermarket and restaurant industries. The group also visited Hong Kong and Macau, two areas that serve as significant economic hubs for international trade.
“We all know about China having 1.3 billion people - I get that, I was ready for that,” Fremark said. “But what really struck me most about the trip was the large number of people in the region who seem to have a very high standard of living. That, I wasn’t ready for. It really surprised me.”
Fremark said this experience made him more optimistic about potential demand for U.S. beef, if the U.S. and China can agree to terms that will resume beef trade.
“Certainly there are still a lot of people living in poverty in China, but their middle and upper classes are growing rapidly,” he said. “If and when we get the beef market open, those are the people who will be buying our product.”
Fremark complimented the USMEF-Hong Kong/China staff for helping assemble a very educational and information-packed week of meetings and activities.
“Our briefing at the U.S. embassy with the agricultural attaché, the numerous supermarket and restaurant visits, the meetings with buyers and others active in the meat industry – those sessions were all first-rate and extremely informative,” he said. “The market intelligence we gained on this trip is first-hand, straight from the people USMEF has on the front lines living and breathing this region’s meat trade every single day. It just doesn’t get any more accurate than that.”
KCC Executive Director Jere White shared Fremark’s observations and enthusiasm for the growing range of trade opportunities in China.
“It was really a mission designed to give U.S. producers a better understanding of the opportunities presented by these emerging Asian markets, and it was certainly a great learning experience,” White said. “Not so much a technical assessment of the market, but a chance to gain a greater appreciation for these changing economies and what these changes mean for the future of U.S. agriculture.”
While China holds vast trade potential because of its large population, White noted that Hong Kong offers tremendous opportunities of its own.
“Hong Kong may not be the largest population center,” he said. “But with the upscale population that lives there and the high-end restaurants and retail outlets – the opportunity for U.S. red meats to thrive in Hong Kong is quite obvious from the time you first set foot there.
“What the U.S. corn industry really needs is to see profitability throughout the entire chain of use,” White said. “And because corn’s not priced the way it was 10 years ago, beef and pork producers need these value-added markets if they are going to remain viable users or corn. It’s only when those sectors are profitable that we in the corn industry can also enjoy the opportunity for long-term profitability.”
“We all know about China having 1.3 billion people - I get that, I was ready for that,” Fremark said. “But what really struck me most about the trip was the large number of people in the region who seem to have a very high standard of living. That, I wasn’t ready for. It really surprised me.”
Fremark said this experience made him more optimistic about potential demand for U.S. beef, if the U.S. and China can agree to terms that will resume beef trade.
“Certainly there are still a lot of people living in poverty in China, but their middle and upper classes are growing rapidly,” he said. “If and when we get the beef market open, those are the people who will be buying our product.”
Fremark complimented the USMEF-Hong Kong/China staff for helping assemble a very educational and information-packed week of meetings and activities.
“Our briefing at the U.S. embassy with the agricultural attaché, the numerous supermarket and restaurant visits, the meetings with buyers and others active in the meat industry – those sessions were all first-rate and extremely informative,” he said. “The market intelligence we gained on this trip is first-hand, straight from the people USMEF has on the front lines living and breathing this region’s meat trade every single day. It just doesn’t get any more accurate than that.”
KCC Executive Director Jere White shared Fremark’s observations and enthusiasm for the growing range of trade opportunities in China.
“It was really a mission designed to give U.S. producers a better understanding of the opportunities presented by these emerging Asian markets, and it was certainly a great learning experience,” White said. “Not so much a technical assessment of the market, but a chance to gain a greater appreciation for these changing economies and what these changes mean for the future of U.S. agriculture.”
While China holds vast trade potential because of its large population, White noted that Hong Kong offers tremendous opportunities of its own.
“Hong Kong may not be the largest population center,” he said. “But with the upscale population that lives there and the high-end restaurants and retail outlets – the opportunity for U.S. red meats to thrive in Hong Kong is quite obvious from the time you first set foot there.
“What the U.S. corn industry really needs is to see profitability throughout the entire chain of use,” White said. “And because corn’s not priced the way it was 10 years ago, beef and pork producers need these value-added markets if they are going to remain viable users or corn. It’s only when those sectors are profitable that we in the corn industry can also enjoy the opportunity for long-term profitability.”