After Russia’s invasion of Ukraine, China has sought new suppliers, including fellow BRICS members Brazil and South Africa, to reduce its dependence on US producers, while Mexico is determined to push through with its partial ban on GM corn.
The United States Department of Agriculture is a record bumper crop for corn and increased soybean production in 2023. Domestic corn production is estimated to reach 15.265 billion bushels, up 1.535 billion on 2022’s record harvest, largely due to increased planted area. But as supply surges, US corn growers face the prospect of slumping demand in its second biggest export market, China, as well as stiffening regulatory challenges in Mexico, its largest market. China and Mexico over half of all overseas purchases of US corn last year.
As Reuters in early May, Chinese buyers cancelled 832,000 tons of US orders in the last three weeks of April alone. That was enough to push US corn exports to their lowest weekly total on record.
“China has made a strategic decision that rather than deal with the United States and our political differences, they will just buy from Brazil,” said Jim Gerlach, president of broker A/C Trading in Indiana.
Brazil is not only providing China with cheaper corn but is on track to overtake the US as the world’s largest corn exporter this year.
China is also anticipating a increased corn production this year. Farmers in the northeast, the top production region for corn and soybeans, have been more inclined to grow corn due to higher profits and easier management, CITIC Futures said.
Many US farmers are already fretting about the risk of further fallout from the escalating US-China trade wars. Soybeans farmers already lost in excess of $25 billion worth of agricultural exports to retaliatory tariffs a few years ago, as S&P Global in a market report last August.
“We [US farmers] somehow managed to pull through the last trade spat with China, but afterwards, we did lose some of the market share to Brazil,” said an Illinous-based soybeans farmer.
“Another round of trade restrictions from China could see us losing a significant volume of sales, which we can ill afford,” another farmer said.
So, the question is: are US farmers’ concerns justified?
Data doesn’t lie. The fact remains that China is the biggest market for American farmers. The world’s second-largest economy with a 1.4 billion population consumes roughly a fifth of US agricultural exports every year.
In fact, China is almost indispensable for American agriculture, especially soybeans and corn. In 2021, 52% of the US soybean shipments of 53 million mt were sold to China, according to the US Department of Agriculture. China also purchased 27% of 69 million mt of exported corn last year.
Thats why European big farmers have to be canceled, European farmers aren't voters in the imperial core so no consequences. The Europeans are all indoctrinated with green movement so they are okey with less energy and less independent food production."De-coupling" is having real consequences for US food corporations and farmers.
China is US food corporations' biggest market and buys 1/5 of US agricultural products every year. If China attains their goal of agricultural self-sufficiency, it will cause irreparable harm to US agricultural industry.
Edit: sorry for the double post i was past the edit time limit but did want to give a more detailed description.Thats why European big farmers have to be canceled, European farmers aren't voters in the imperial core so no consequences. The Europeans are all indoctrinated with green movement so they are okey with less energy and less independent food production.
I guess you've never heard of CAP.Thats why European big farmers have to be canceled, European farmers aren't voters in the imperial core so no consequences. The Europeans are all indoctrinated with green movement so they are okey with less energy and less independent food production.
Edit:
The west has been using food as a weapon as a concept for a big part of the 20th century, western agri production is heavily subsidised so people in the global south can't really compete against western agri production. You don't comply good luck feeding your people we also own your information streams so it shouldn't be that hard for us to incite a rebellion.
Another EU slush fund?I guess you've never heard of CAP.
It's a giant protectionism racket for EU farmers.Another EU slush fund?