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The American Soybean Association (ASA) urged the US government on Tuesday (US time) to reach a deal with China that would reopen this vital market to American soybean exports, stressing that US soybean growers cannot afford a prolonged trade dispute with their largest customer.
Caleb Ragland, ASA president and a farmer from Kentucky, said in a letter to the Trump administration, according to the association's website:
"American soybean growers are standing on a trade and financial precipice. They are under severe financial strain, with prices continuing to fall while farmers pay far higher costs for inputs and equipment. Our farmers cannot survive a long trade dispute with our biggest customer."
Historically, China imports more than 60% of the world's soybean supply, with the United States previously its main source. However, retaliatory tariffs have made American soybeans 20% more expensive than supplies from South America, prompting China to turn to Brazil, which has ramped up production to meet demand, according to the association.
Ragland added: "China has not purchased any American soybeans for the coming months, and we are on the verge of harvest season. The longer it takes to reach a deal with China on soybeans this autumn, the more severe the negative impact will be on American soybean farmers."
The association also released a white paper outlining the financial consequences of a long-term loss of market share in China. According to the paper, China is by far the largest buyer of American soybeans, having imported around 25 million metric tonnes of US soybeans in the 2023/2024 season, compared with just 4.9 million tonnes imported by the European Union. The second-largest buyer purchases barely a fifth of what China alone imports.
Ragland concluded: "Every day that passes without a deal further erodes American farmers' share of the Chinese market. We strongly urge the US administration to secure an agreement that reopens this vital market to American soybeans."
Source: Al Mal Forum