China-US Trade War: US farmers scramble to find new buyers as they lose China market

World
Europe

American farmers have been among the hardest hit so far. The China-U.S. trade war has hurt sales of many agricultural products. Soybeans are the single biggest U.S. agricultural export, most of which went to China before the trade war. Now, U.S. farmers have to search for new buyers. Hendrik Sybrandy reports.

In downtown Chicago, a fleet of buses prepares to escort a large group of international visitors through rural parts of Illinois.

"We have a team of 19 people from the Americas."

These soybean buyers from all over the world are about to get an up close look at how the crop is grown and processed in the top producing soybean state in the U.S.

"Whenever you can see your customer and promote your product, that's all a plus."

First stop, Scoular, a company that takes farmers' grain and prepares it for market. Until the past few years, close to half of all U.S. soybean exports went to China.

HENDRIK SYBRANDY JOLIET, ILLINOIS "The soybean actually originated in China many centuries ago but today the Chinese are big buyers of soybeans. They're mostly used for pig feed to help satisfy the country's growing demand for protein."

"So China is the big kahuna in the soybean world."

But as Soybean Export Council CEO Jim Sutter knows all too well, that world has been turned upside down by the U.S.-China trade war and the 25 percent tariffs imposed on U.S. beans. Ten percent more is set to be added next month. This, while an African swine flu outbreak is also cutting China's demand for feed.

"So we have a bit of a perfect storm which unfortunately is a two sucker punch to the grower."

Just as weather often forces farmers to improvise, growers, who tout the quality and sustainability of U.S. soybeans and America's transportation networks, are now trying to attract new customers in places like Mexico.

RICARDO MORENO MEXICAN SOYBEAN BUYER "There's a lot of hog population farms in my area and they're growing big."

And Indonesia, where the soy food product tempeh is very popular.

"For us in Indonesia, tempeh is a source of protein for more than 265 million people."

With supply outpacing demand, soybean prices down and China and the U.S. in a trade stalemate, it's no wonder so many shoppers showed up here at Jeff O'Connor's farm.

"We never envisioned this lasting as long as it is but what it's done is brought a great focus onto, that there's a whole lot of other people in the world that need our soybeans."

This year's Soy Global Trade Exchange brought 400 buyers from more than 50 countries to Chicago. The industry's "What It Takes" initiative to move lost business from China to new markets was set back by this spring's heavy rains.

"We've really lost the opportunity to fully make up for the sales to China."

Brazil has also become a major U.S. competitor.Trade with China hasn't dried up completely. Some soybeans continue to flow into the country as a result of goodwill purchases made earlier this year. A Chinese delegation even attended this trade show to keep this 38-year relationship going. Still these are uncertain times for soybean farmers, who feel caught in the middle.

"To bake cake you got to break some eggs and right now we're the broken eggs."

They're trying to piece things together, as best as they can.

"We're not sitting here waiting to get back China back."

Hendrik Sybrandy, CGTN, Joliet, Illinois.