China Can Fulfill Pledge to Purchase $40 Billion in U.S. Farm Goods

China’s top agriculture consultancy said last week that it believes China can and will make good on a promise to purchase more than $40 billion in U.S. agricultural products per year.  That pledge is part of a Phase One trade deal the two countries recently agreed to.  Reuters said China will increase its agricultural purchases to anywhere between $40 and $50 billion over the next two years.  The deal isn’t signed yet and that’s led to skepticism over whether China can handle purchases that large.

Shanghai-based consultant group JCI released a document saying that most foreign media don’t believe China can fulfill that level of commitment. “As a Chinese consultant company on the agricultural market, JCI strongly believes that China has the ability and will fulfill its promise,” the company says.  JCI estimates that China can buy approximately $41.3 billion worth of U.S. farm products every year, including around $18.7 billion worth of soybeans, which would amount to 45 million tons.

The projections from JCI were based on what they say was a “careful study” of China’s import volume of U.S. farm products in the past and does assume favorable weather and pricing throughout the term of the agreement.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com