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  January 13th, 2016 | Written by

USDA Trade Mission Spurs Record Ethanol Exports to China

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  • China is the largest market for U.S. food and farm products.
  • U.S. agricultural exports to China have tripled over the last decade.
  • U.S. agricultural exports to China account for 20 percent of all foreign sales of U.S. agricultural products.
  • The past seven years have represented the strongest all-time period for U.S. agricultural exports.

The U.S. Department of Agriculture (USDA) announced a significant jump in ethanol exports to China this year, following a USDA-led trade mission to the country last year. Representatives from nine state departments of agriculture and 28 U.S. companies, including renewable fuels businesses, traveled to northeast China to explore opportunities for trade in the region.

China is the largest market for U.S. food and farm products. U.S. agricultural exports to the country tripled over the last decade, now accounting for nearly 20 percent of all foreign sales of U.S. agricultural products.

“Our objective for every trade mission is to create new markets for farm products made in rural America,” said USDA Under Secretary for Farm and Foreign Agricultural Services Michael Scuse, who led the mission. “U.S. ethanol exports to China have jumped from $8 million to more than $86 million since our May 2014 visit. In October, we exported more ethanol to China than in the previous 10 years combined.”

Scuse led the delegation to promote U.S. agriculture, and explore the role that renewable fuels might play in China’s long-term clean energy strategy. The delegation met with gasoline companies, fuel blenders, oil companies, commodity traders, and government officials to promote the benefits of using higher ethanol blends. During October, the U.S. exported 32.5 million gallons of ethanol to China, valued at $57 million, or 46 percent of total U.S. ethanol exports for the month. Previous U.S. exports of ethanol to China averaged less than $3 million annually from 2005 to 2014.

The past seven years have represented the strongest all-time period for U.S. agricultural exports, totaling $911.3 billion between 2009 and 2015. In fiscal year 2015, American farmers and ranchers exported $139.7 billion of food and agricultural goods to consumers worldwide. U.S. agricultural exports supported more than one-million American jobs both on and off the farm, a substantial part of the estimated 11.7 million jobs supported by exports all across the country.