The dynamic evolution of China’s economy is leading to an increased demand for imports, particularly with a growing, affluent population and corresponding demand for more protein-rich diets. With a population of 1.3 billion — and expectations to reach 1.4 billion by 2030 — even a small shift in food trends can myriad opportunities for exporting the feed grains necessary for expanded meat production.
The U.S. Grains Council has been on the leading edge of organizations working with the Chinese government to meet these demands.
Over the next 10 years, imports of coarse grains are expected to double as China tries to keep-up with
demand outpacing the growth of domestic production. The Chinese domestic grain production is already nearing capacity, largely due to constraints of land and water, as well as access to a workforce to maintain the land.
As food imports become a necessity, major grains exporters like the United States are building partnerships with China to assist in meeting the mutual goals of food safety, security and sustainability. A critical hurdle to meeting the demand will include on-going education of the Chinese population about the safety and effectiveness of biotechnology and communicating the importance of approval. These ideas are being emphasized through aggressive Council programs.
“When problems arise in foreign markets, it is critical to stick with them through the growing pains,” said Erick Erickson, USGC vice president. “There is an increasing sense of cooperation among major exporters to redouble partnership-building efforts to ensure biotechnology questions are answered based on science and recognition of its value.”
To develop a mutually beneficial trade relationship, China and the United States held the 24th U.S.-China Joint Commission on Commerce and Trade (JCCT) in December 2013. The forum worked toward resolution of trade and investment issues, highlighting touchstone topics, including the acceptance of biotechnology. The United States emphasized its commitment to helping China streamline its biotechnology approval process and implement a pilot program for reviewing biotechnologies, as well as proposing a Memorandum of Understanding for science and technology cooperation in agriculture.
Increasing communication and laying groundwork for future cooperation between these two nations is vital for more open and transparent trade.