​Milestone! Suddenly announced: Export to China!

Source: Securities Times Network

The pattern of agricultural product trade is changing.

On April 20th, according to a report by Xinhua News Agency citing Prensa Latina, Bolivian President Luis Arce said that the export of 25 tons of chia seeds from the Santa Cruz department to China is a milestone event. Arce emphasized that opening up the Chinese market can redirect products that are currently being sold to the United States, as the United States has imposed an additional 10% tariff on top of the existing tariffs.

Bolivia is the world's second-largest producer of chia seeds. Data from INE shows that in 2023, the export value of Bolivian chia seeds was $26.19 million, mainly exported to countries such as Mexico (35%), the United States (15%), Germany (9%), the United Kingdom (7%), and Peru (6%).

Against the backdrop of the "tariff storm" set off by the United States, the export of US agricultural products is facing new challenges. Caleb Ragland, President of the American Soybean Association and a farmer from Kentucky, recently said that it is crucial to maintain access to the Chinese market. American farmers are already facing "potential significant losses" in 2025, and a considerable number of farmers may go bankrupt.

"Milestone Event"

On April 20th, according to a report by Xinhua News Agency citing Prensa Latina, Bolivian President Luis Arce said on the 17th that the export of 25 tons of chia seeds from the Santa Cruz department to China is a milestone event, which is the result of the joint efforts of the public and private sectors.

The report said that when delivering a speech after the first batch of domestically produced chia seeds was shipped, Arce said: "Today we have witnessed a milestone event" because we are opening up "a new market with great potential."

Arce said: "We can enter a huge market that everyone wants to enter. Why wouldn't Argentina, Paraguay, and other countries want (this opportunity) to enter the Chinese market?"

Regarding chia seeds, Arce believes that there is "no limit" to the export volume to China and emphasized that opening up the Chinese market can redirect products that are currently being sold to the United States, as the United States has imposed an additional 10% tariff on top of the existing tariffs.

According to the report, Julio Noguera, a business representative, said that starting exports to China will drive more investment and create job opportunities, and will bring positive chain reactions to the Santa Cruz department and Bolivia.

On April 17th, Chinese Ambassador to Bolivia Wang Liang was invited to attend the shipment ceremony of the first batch of Bolivian chia seeds exported to China together with Bolivian President Arce. Bolivian Foreign Minister Rogelio Mayta Sosa, Minister of Rural Development and Lands Cesar Cocarico Flores, and Consul General in Santa Cruz Wang Huijun participated.

In his speech, Wang Liang highly appraised the new achievements in agricultural product trade between China and Bolivia, and actively looked forward to the continuous benefits that economic and trade cooperation between the two countries will bring to the people. At the same time, he pointed out that the wanton imposition of tariffs by the United States is a unilateral and bullying practice out of self-interest, and emphasized that there are no winners in a tariff war or a trade war. China is willing to closely coordinate with Bolivia to safeguard common interests and international fairness and justice.

According to data from the Ministry of Rural Development and Lands of Bolivia, the annual output of chia seeds in Bolivia was 11,500 tons in 2023, and the planting area was 22,600 hectares. The Santa Cruz department is the main production area of Bolivian chia seeds, accounting for 95% of the exports. Data from INE shows that in 2023, the export value of Bolivian chia seeds was $26.19 million, mainly exported to countries such as Mexico (35%), the United States (15%), Germany (9%), the United Kingdom (7%), and Peru (6%).

The central government of Bolivia believes that after achieving the export of chia seeds to China, Bolivia is expected to become the world's largest exporter of chia seeds.

It is reported that chia seeds are a nutritious food, rich in elements such as Omega-3 fatty acids, dietary fiber, calcium, and magnesium. Currently, chia seeds have become one of the popular products in the healthy food market and are widely used in the fields of diet, health care, and even beauty.

Challenges for US Agricultural Products

Against the backdrop of the "tariff storm" set off by the United States, the export of US agricultural products is facing new challenges.

According to the People's Daily client, the tariff war between China and the United States may first deal a heavy blow to American farmers, who are precisely an important voting bloc for Trump. In specific fields such as agriculture, the Chinese market is very important to the United States. For example, soybeans are precisely the largest commodity imported by China from the United States. In addition, agricultural products such as US oilseeds and grains are also largely exported to China.

According to a previous report by Huanqiu.com citing Brazilian media, informed sources revealed that Chinese importers recently purchased at least 2.4 million tons of soybeans from Brazil, which is almost one-third of China's average monthly import volume.

Brazilian media believes that for China, it is not difficult to reduce imports of US soybeans. The soybeans of Brazil and Argentina are both likely to become substitutes for US soybeans.

The report said that in recent years, China has continuously promoted the diversification of agricultural product imports. Brazil has replaced the United States as China's largest soybean supplier, but soybeans are still the top agricultural product exported by the United States to China. The large-scale purchase of Brazilian soybeans by Chinese enterprises has made American farmers worried, and they are concerned that they will lose China, the "largest customer", from now on.

In this regard, Caleb Ragland, a supporter of Trump and President of the American Soybean Association, said: "If this situation continues for a long time, a considerable number of our farmers will go bankrupt."

According to the American Soybean Association, during the China-US trade war in 2018, the losses of the US agricultural sector reached approximately $27 billion, of which about 71% were related to soybeans.

According to Huanqiu.com citing US media, during his first term, Trump took out $23 billion from a fund established by the US Department of Agriculture as subsidies, hoping to make up for the losses suffered by farmers. But this, in turn, has caused problems regarding the fairness of subsidy distribution, making some farmers feel deeply "cheated." Ragland said in this regard: "We still bear the scars left by the last trade war."

When interviewed by US media, Ragland said that it is crucial to maintain access to the Chinese market. American farmers are already facing "potential significant losses" in 2025. He and other farmers "bear the brunt of the burden" of agricultural taxes, "We cannot be sacrificial lambs and bear most of the pain for the interests of others."

"As soybean farmers, we rely on trade. Approximately 50% of US soybeans are for export. China imports more soybeans than the sum of all other national customers. Therefore, they are an important part of our market. At this stage, this trade war makes us very worried." Ragland said.

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