Six Iowa Soybean Association(ISA) directors traveled overseas to visit Asian trading partners: China and Japan. April Hemmes, director of District 2, says ISA directors hope to gain a better understanding of both markets.
?It?s a learning mission for us on the board,? Hemmes said. ?To keep up relations with people we do business with, soybean buyers. They can?t buy our soybeans now, but it?s(about) keeping those relations going.?
Soybean buyers vocalized frustrations surrounding trade war ramifications. However, Hemmes reports five crushers will receive a tariff exemption on some U.S. soybean cargoes, arriving before December 31.
Hemmes stresses a need for full tariff removal, as Chinese feed mills announced their intentions to ramp up production. The move would heighten China?s dependence on soybean imports.
?We?ve been talking to feed companies. Some are down a little in making feed, but others are ramping up production,? Hemmes said. ?African Swine Fever is going to make small, backyard farmers decrease in numbers and larger farmers consolidate more – They?re ramping up their production and getting tighter on biosecurity.?
Regardless of circumstances, ISA hopes to strengthen relations with China.
?Relationships matter,? Hemmes said. ?Everybody asked, ?Why are you going to China? They can?t buy our beans.? Well, we have been in this market and they have been buying our soybeans. We?ve been doing a lot of work (here) for over 30 years. There?s a hiccup with the tariffs, yet we have to keep those relations going.?
ISA directors will head to Japan next.
