Finding new markets outside of Brazil, China for corn and soybeans
An ag economist says the US needs to create and expand market access for corn and soybean products to remain competitive with Brazil.
Jim McCormick with AgMarket.Net says there is more demand for Brazil’s exports especially from China, one of the U.S.’s top customers. “The reality is that we still have tariffs on Chinese goods. They have tariffs on our good. We need to get away from the trade war stuff and find ways to become more competitive.
He tells Brownfield the US will need to diversify its domestic supplies. “Renewable diesel for the soybeans and ethanol – changing that over to jet fuel, which is in its infancy. Those are the products that we need to push as a country to essentially divest away from selling products to China.
McCormick says the increase in electric vehicles could create some demand issues for ethanol.
And, he says, it may be difficult to for the US to keep pace with Brazil, as they expand crop production.