US hay feeds Chinese demand
Mainland's rising number of dairy herds need forage, and high-protein crop fits the bill
As China continues to seek feed supplies for its growing dairy market, the practicality of importing hay feed from the United States continues to improve, according to two California-based exporters. US farmers and exporters of alfalfa hay in particular are starting to reap the benefits. "I think the growth in China has been anticipated," said Greg DeWitt, manager of marketing and communications for Acx Pacific Northwest Inc, a California-based hay exporter. "Alfalfa is the very beginning of so many products, not just milk but also cheese, ice cream, yogurt," DeWitt said. "A lot of people may not realize that alfalfa is just a base for that." Over the past decade, DeWitt said exports "grew exponentially" from Acx's operations in the US to China, due in part to the "interest and awareness around alfalfa". There has been a steady increase in demand for hay products around the world, "not just in China", DeWitt said. "China has little choice but to turn to US farmers to help supply feed for the country's growing herd of dairy cows," the Los Angeles Times said in a recent report. "Packed with fiber and protein, alfalfa hay is considered the gold standard for forage, and … since 2009, US alfalfa exports to China grew nearly eightfold to a record 575,000 tons."
China is now Asia's biggest buyer of US alfalfa, as well as the biggest global destination for US food and agricultural products, according to the US Department of Agriculture. China, which accounts for nearly 20 percent of all US farm exports, with a value of $144 billion in 2013, is already a large buyer of corn, cotton, soybeans and wheat from the US. Agricultural exports from the US to China reached $26.7 billion in 2013. "The (Chinese) government policy is to increase milk production, and in order to do that, they need high-quality forage," said Dan Undersander, a forage agronomist at the University of Wisconsin. "Our advantage has been consistent, high-quality hay, but the other advantage is it's very inexpensive to ship hay to China." Undersander, who has worked in China, said he's "not surprised at all" by China's interest in US forage. "To the extent that the policy is to continue to encourage dairy production in China, there will be asignificant need for alfalfa," he said. "China seems to be on this growth approach, growing each year steadily, which really helps the industry evolve and develop at a much stronger pace," said Adam Lyerly, an export sales manager with El Toro Export LLC in El Centro, California. "Our goal is to have our brand come across as something people can rely on, and we continue to take that approach in our business in China," Lyerly said.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.