Thanks to soybean checkoff international marketing efforts, China, the largest customer for U.S. soybeans, imported more than 282 million bushels in the past trading year. Now stemming from this success, a Chinese Soybean Delegation signed contracts of intent for purchases of U.S. soybeans at the Chicago Board of Trade (CBOT) yesterday.

The signing ceremony was part of the delegation's series of events centered on the U.S. soybean industry hosted by United Soybean Board (USB), American Soybean Association (ASA) and representatives of the U.S. soybean industry.

"China represents the most important buyer of U.S. soybeans," says Criss Davis, USB Chairman and a soybean farmer from Shullsburg, Wis. "This contract signing today represents further indication of our commitment to being a reliable supplier of quality soybeans in the future."

In addition to USB and ASA, representatives from Bunge North America and Cargill hosted a tour of the export facilities in New Orleans and presented the Chinese delegation with information on the U.S. soybean industry. The soybean delegation included representatives from major Chinese soybean buyers, including the East Ocean Grains & Oil Industries Co. Ltd., the largest oilseed buyer in the world.

"We are hoping that this event will be a watershed. The market for U.S. soybeans in China is expanding at an incredible rate," says Zhang Xiao Ping, Assistant Director for the ASA in Beijing, China. "This is a great opportunity for the United States to ensure its share of this hungry and growing need for soy protein and soybean oil."

The reason for this great demand is twofold. According to researchers at the Center for Chinese Agricultural Policy, projections show that while total Chinese agriculture may drop 5 percent, animal agriculture will steadily increase. If this occurs as expected, the need for high-quality soybean meal will rise sharply.

China has also experienced a resurgent economy for the past several years. This increase in income gives the Chinese more money to spend on soybean oil-based products.

To address this shortened supply and increasing demand, the soybean checkoff, through programs like the Better Bean Initiative, remains committed to supplying China with soybeans that produce a higher quality soybean meal.

"The soybean checkoff will continue to fund programs to assist in China's agricultural development and increase their use of quality soy protein in human diets," says Davis. "We also intend to do our part to better inform our American farmers of the important market that China represents for our soybeans."

USB is made up of 62 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA's Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.