What’s new: China imported its first-ever commercial shipment of rice from the U.S., marking a positive move in the implementation of this year’s phase one trade deal after nearly two decades of efforts by the American rice industry to export to the world’s largest rice consuming nation.
Chicago-based Archer-Daniels-Midland Co. (ADM) shipped 20 metric tons of U.S. rice to China, according to the USA Rice Federation. The shipment of Calrose medium grain rice was cleared at the port of Xiamen, Fujian province.
The rice will be sold at supermarkets owned by Xiamen Sungiven Foods Holding Co. Ltd., the USA Rice Federation said.
The background: China agreed to buy U.S. rice at the end of 2018 as part of negotiations for the phase one trade deal that was signed in January.
As the most populous country in the world, China consumes more rice than any other nation, totaling 143 million metric tons in 2019-20.
The U.S. Department of Agriculture estimated that China could import about $300 million a year of American rice if the Chinese market opens up.
AMD, one the world’s largest grain traders, also sells soybeans to China. Since January, AMD’s soybean exports to China increased by nearly 40%, said Si Yao, ADM’s China general manager of agricultural trade and oilseed.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
