ODA-led trade mission heads to China
While concerns of a possible trade war continue to loom between the U.S. and China, representatives of Oregon agriculture will embark Friday on a week-long trade mission May 12-17 to Shanghai in hopes of building new relationships with overseas customers.
Alexis Taylor, director of the Oregon Department of Agriculture, will lead the statewide delegation, including beef, berry, potato and grain producers, as well as the Oregon State University Food Innovation Center and Port of Portland.
“I’m excited about showcasing the variety of what we have here in Oregon,” Taylor said in an interview with the Capital Press.
China is the fourth-largest export market for Oregon agriculture, behind Japan, South Korea and Canada. Last year, China purchased $290 million worth of Oregon food and agricultural products.
Oregon’s farm economy is also highly dependent on exports. About 80 percent of all agricultural goods leave the state, half of which are shipped overseas. The total value of exports in 2015 topped $1.8 billion, according to ODA.
Factor in China’s rapidly growing middle class, which is poised to add 160 million households over the next decade, and Taylor said there is a clear opportunity for Oregon farmers and ranchers to broaden their customer base.
“There’s a lot of room to grow in some of these high-value products,” Taylor said. “They bring a premium in China.”
One industry especially looking to court Chinese buyers is Oregon beef. China has reopened access to U.S. beef for the first time since 2003, following an agreement between the countries last year, though USDA figures show sales of beef to China is still less than 1 percent of overall exports this year.
Both the Oregon Cattlemen’s Association and Oregon Beef Council will participate in the upcoming trade mission. Nathan Jackson, OCA president and general manager of sales and administration at K Bar Ranches in Myrtle Creek, Ore., said the trip is all about finding out what Chinese consumers want from beef producers, and how they can supply the market in a way that makes sense.
“This is really more of a research and reconnaissance mission,” Jackson said. “There is obviously a really big potential opportunity there. We want to know how we can do that profitably. If we can’t add dollars to our production, then it doesn’t make much sense.”
Exports are vitally important to the beef industry, Jackson said, adding as much as $300 of value per head of cattle. Overseas customers tend to buy parts of the animal that aren’t as desirable domestically, such as tongue and offal.
The question is how Oregon ranchers can deliver the product economically, Jackson said.
“That’s where the rubber really meets the road,” he said.
Part of the trade mission will focus heavily on the rise of E-commerce in China, which surpassed the U.S. in 2016 to become the world’s largest online retail market.
Before becoming ODA director, Taylor spent four years at the USDA in Washington, D.C., where she oversaw the Foreign Agricultural Service. She said a survey of Chinese consumers found about 70 percent buy food online as well as in stores — including fresh produce and seafood.
“It’s really interesting, and an exciting part of selling into China as a market,” she said. “They’re looking for that convenience even more today than they were two years ago.”
The final day of the visit will overlap with SIAL China, the largest food and beverage trade show in Asia. Bob’s Red Mill of Portland and the Oregon Potato Commission will be exhibiting at the show, while others in the delegation will make the rounds to see how competitors are marketing their products in the country.
“It’s about opening those doors and making those sales,” Taylor said.
Reaching out to China may be more important now than ever, Taylor added, given uncertainty around federal trade policies between the two countries that could result in hefty tariffs on U.S. agriculture.
Taylor said Oregonians need certainty at the federal level, though by developing business-to-business relationships they can help keep their markets open.
“Doing business in China is about long-term relationships,” Taylor said. “I think it’s important that we’re still showing up and saying, ‘We still value you, and we’re still investing in you.’”
The entire Oregon delegation to China will include:
• All Berry & Fruits, Portland.
• Bob’s Red Mill, Portland.
• Country Natural Beef, Burns, Ore.
• Fresh Elements Farms, Salem, Ore.
• Harper Farms, Junction City, Ore.
• Herb Guru Brand, Portland.
• Hoopla Global, Portland.
• Kombucha Wonder Drink, Portland.
• Seaview Cranberries, Sixes, Ore.
• Willamette Valley Fruit Co., Salem, Ore.
• Oregon Beef Council, Portland.
• Oregon Cattlemen’s Association/K Bar Ranches, Myrtle Creek, Ore.
• Oregon Potato Commission/Gold Dust Potato Processors, Merrill, Ore.
• Oregon Potato Commission/Bailey-Trotman Farms, Malin, Ore.
• Oregon State University Food Innovation Center, Portland.
• Port of Portland.