Mark Linnhoefer – Next week Beijing and Washington will sign an agreement to allow US companies to export rice to China. This phytosanitary agreement is an addition to original negotiations that resulted in China allowing soybeans, cotton, and other grains to be imported from the US.
The US Rice Producers Association (USRPA) has been trying for fifteen years to finally get into the Chinese market.
China used to be one of the world’s biggest exporters of rice, but in recent years that focus has shifted, and the Far Eastern country is now one of the biggest importers, buying rice mostly from Vietnam due to its high quality, good price, and proximity. Entering this huge market could be a great boost for the American rice industry, which has recently been suffering under cheap imported rice taking business away from local producers.
The USRPA conducted surveys amongst the Chinese consumer class to see how well American rice would actually do if importing it was ever allowed. The results were very clear – US rice would be a preferred product for Chinese consumers and could be sold for a premium price to the newly emerged consumer class in China.
The association’s analysis of China goes back to 1998 according to USRPA President and CEO Dwight Roberts, who describes the effort taken by all parties involved “so important” and that the “long and exhaustive process” that has led to the agreement is just the way that “international market developments” unfold.
The agreement will allow the US to aggressively penetrate the Chinese rice market and exit the slump it is currently finding itself in – something our favorite candidate, Donald Trump, would surely approve of as he “loves China” and “the Chinese love [him]”, as long as they’re the ones buying from the US and not the other way round.
The rice farmers and producers will also be thrilled about this development as it will allow them to access a market of an unimaginable 1300 million people, most of which eat rice.
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