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China Trade Office a Plus for Soybeans, Other Commodities

Posted: 6:38 PM Aug 6, 2012
Reporter: Megan Johnson

Trade Office in China Opens Doors for Ag - Megan Johnson Reports at 9
Trade Mission Helps Nebraska -- Megan Johnson reports on NCN at 5:30

Soybean Board Chair Greg Greving says that while half of all US soybean meal stays in country and feeds domestic livestock, the other half is bound for export market.

"If you just look at any soybean here in Nebraska, one of out every four rows will be going to China," says Greving.

That's why Greving says a new trade office in Shanghai will open more doors for soybeans and other commodities.

He says US soybeans have to compete with other countries also vying for Chinese contracts, but says reverse trade missions and the AGP facility in Hastings have given Nebraska an edge.

"They crush soybeans there and that goes directly to Grays Harbor in Washington and they can get soybeans to China or southeast Asia quicker than any other port in the world," he explains.

Officials say a trade office also helps more of Nebraska than just ag products.

"We will look forward to working with the commodity groups, business and industry groups, as well as private businesses to be able to have them utilize the office to further their efforts in China," says Nebraska Department of Agriculture Director Greg Ibach.

Ibach says overseas offices are advantageous because they can be used to make contacts. Greving says that's especially helpful in a culture that often values contacts over contracts.

"We've got somebody there that the customers there already know and have been accustomed to and it's just going to be a win-win situation for everybody," says Greving.

Officials say the trade office will also open the door for more Chinese investment in Nebraska.

The Governor's office says the Nebraska Center - Shanghai will be the second overseas trade office established by Heineman. In 2006 the Nebraska Center - Tokyo opened to help Nebraska companies do business with Japan.