Prominent figures in China’s agricultural sector have warned that a trader deal between the United States and China including greater purchases of US agricultural products could have a negative effect on China’s livestock and agriculture industry, reported South China Morning Post.
“More imports of soybeans and corn will help reduce the cost of raising livestock, but Chinese farmers, and the animal feed industry in China will definitely be under pressure,” said Liu, a Chinese agricultural business tycoon.
Food security is top of mind as China prepares to buy more US agricultural products, making it difficult for China’s agricultural sector to balance its existing structure. Last month Vice-Premier Liu He met with President Donald Trump and discussed purchases by China of 10 million extra tonnes of soybeans and a proposal for an additional $30 billion increase in China’s purchases of US Agricultural products.
Last Thursday, the World Trade Organization ruled that China exceeded agreed standards for domestic support of wheat and rice farmers, causing artificial deflation for prices of crops globally.