A delegation of Chinese soy buyers was in Indiana over the weekend. Alfonso Yin, a soy buyer for Beijing based COFCO says visits like this allow the largest purchaser of American soybeans to actually see the full supply chain of what they are buying. “Our purchases bring benefits to the farmers,” he says. “This visit gives us a chance to see how the industry has changed. The land, the seed technology, and the storage.”
During his visit to Scott Fritz’s Winamac, Ind. farm – Yin told Brownfield the drought not only challenged producers this year – but placed more pressure on end users of soybeans as well. “China is also suffering from crushing margins so far this year,” he says. “And I think it is a reflection of the supply and demand issue.”
Scott Fritz hosted the group on Saturday morning. He says a lot of their questions focused on this year’s drought – and how it influences decisions on their farms and others like it. “During their visit they will have a chance to see a lot of the crop across the Midwest,” he says. “Over time – I think they will develop their purchase strategy. “
Fritz thinks after they return home they will either purchase a lot of crop this fall or decide they think the crop will be available throughout the year and decide to purchase some later on in 2013. He says, “That’s why they are here. They’re making decisions, too.”
The Indiana Soybean Alliance hosted the group in partnership with the US Soybean Export Council.
The group is taking part in a multi-day visit with addition stops in Illinois and Minnesota.