Monday, January 25, 2021

China's 2020 Phase One agriculture purchases well below target, but back up to 2017 levels

In 2020, China purchased just 58 percent of the U.S. exports promised in the Trump administration's Phase One trade deal. That includes only $23.6 billion of agricultural products, compared with an expected $36.6 billion, according to an extensive round-up by Keith Good at the University of IllinoisFarm Policy News. Some of the highlights:

  • It's unclear whether the Biden administration will seek to enforce the trade deal or negotiate a new one. 
  • China's soybean imports from the U.S. in 2020 rose by 52.8% from 2019. That includes 25.89 million tonnes of oilseed from the U.S., up from 16.94 million tonnes in 2019.
  • China was the world's top soybean buyer in 2020 and the U.S. was its second-largest supplier.
  • Soybean import levels improved as China's pig herds grew after being decimated by African swine fever in 2018 and 2019.
  • Two new strains of African swine fever could hurt China's pig herds again though. The new strains don't kill pigs, but they cause a chronic condition that reduces the number of healthy piglets born.
  • China's grain imports rose to record highs in 2020.
  • China imported a record 11.3 million tonnes of corn in 2020, with 2.25 million tonnes of that in December alone.
  • China imported a record 8.38 million tonnes of wheat in 2020, just short of a quota of 9.64 million tonnes. 

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