US corn replaced by Ukrainian in the Chinese market
Ukrainian corn has successfully replaced the US grain in the structure of Chinese commodity imports. This was stated by Renault Quach, Director of the Chinese company Dongling Grain & Oil in the framework of the XVI International Conference Black Sea Grain held in Kyiv, Ukraine.
“I'm sure that American commodities are not indispensable for China. We can easily replace it with raw materials from other countries. Ukrainian corn has successfully replaced American. As for wheat, we import only 11%. Having a huge domestic market makes it irrelevant,” he commented.
According to him, China is dependent on soybeans, sorghum and barley. But in 2018 China reduced US imports in these categories by almost 50%.
“We are actively importing Brazilian soybeans. Traders in South America are happy with the premium they receive. One Panamax brings USD 9 million of premium. We are ready to increase feed barley imports from Ukraine. This segment will receive new opportunities,” he said.
With regard to meat imports, China is much less dependent on the United States.
“Another side to this is the impact on US exporters. We found an alternative, but they cannot find a market comparable to that of China. What will happen next? This will depend on the agreement between the United States and China. If they sign it, then we can return to doing normal business with the Americans,” Renault Quach added.
However, he stressed that in that case it would be unprofitable for Ukrainian products. The supply of feed barley from Ukraine will fall in the event of US-China trade disputes resolved. Corn supplies from Ukraine may also reduce.
Earlier it was reported that in the first half of 2018/19 (September-February) Ukraine had increased the export of sunflower meal to China 18 times to 633 thou. tons, as compared with the corresponding period last season (34 thou. tons).