Missouri strengthens soybean connection to China

Missouri soybeans are exported all over the world… and markets are growing.
Reporting for Harvest Public Media, Eva Dou visited the self-proclaimed “World Capital of Soybeans” … Norborne, Missouri… to learn how local farmers are building on connections to their largest customers.
SOYTRADEXXXX TRT SOC

(nat sound of walking around farm)

Here in Norborne, Missouri – about XX?? miles outside Kansas City --
Ron Gibson has spent his entire life growing soybeans.

“I quit college and came back to farm and have been farming ever since. Just been adding acres as I go.”

At age 70, Gibson got to see for the first time where most of his crop ends up. That is – on the other side of the world, in China.

“We spent a couple days in Beijing and then went to the Hebei province, the sister state of Missouri, and they treated us very, very nice there.”

Gibson was part of a Missouri’s trade mission to China last fall. He represented soybean farmers. It was an important role, because soybeans are Missouri’s main crop. And China is an important customer.

“China’s the biggest. It’s made a world of difference. The price wouldn’t be near what it is if they weren’t using all that they’re using.”

Historically speaking, it’s actually an interesting reversal, China buying so much soy from the U.S. Soybeans are native to China, and have been cultivated there for thousands of years. They weren’t introduced to the West until much later, and even then, Gibson said, soybeans didn’t take off.
“It started out as a legume, as a manure crop, you planted it and plowed it under, that was years ago. But it turned out it was such a good livestock feed.”

With the discovery of new uses for soybeans – like biodiesel – places like Norborne, Mo., have been turning out ever more soy. And Missouri farmers are looking to China to buy.
“You’ve got to find new demands because the yields are increasing and you don’t want a glut on the market.”

In almost every sector, Missouri businesses are looking to plug themselves into the enormous market to the East. Tim Nowak, executive director of the World Trade Center Saint Louis, said 80 to 85 percent of Missouri’s exporters are small- to medium-sized companies.
“It’s not just about multinational companies,” he said.

Now, Missouri exports to China are set to hit new highs.“Shortly before that trade mission Gibson took part in, Gov. Jay Nixon signed a $4.4 billion dollar trade deal with China.”
But not everyone’s happy with what’s being sold. Robert Scott is director of trade research at the DC-based Economic Policy Institute. He points out that Missouri’s top exports continue to be commodities, such as crops and metals, while its main imports are finished products. He says this trade imbalance will hurt the state in the long run.
“We’re pouring energy on the land and mining the soil for corn with a lot of heavy equipment. It doesn’t create very many jobs. We’re using those products to buy labor-intensive manufactured goods from China.” SCOTT

(Gibson nats)
But as for Gibson, with his soybean farms ???, he sees more opportunity than downside. He says he was struck by something during his visit to China:
“I expected everything to be backwards, but the big cities are just like ours. They’re huge.” GIBSON

Huge cities, filled with potential customers. Eva Dou, for Harvest Public Media.