Two Taiwanese business associations have agreed to buy millions of metric tons of Indiana corn and soybeans over the next two years in deals worth more than $2 billion.
The Taiwan Feed Industry Association and the Taiwan Vegetable Oil Manufacturers Association signed an agreement Monday with directors of the Indiana Soybean Alliance (ISA) and the Indiana Corn Marketing Council (ICMC) to commit to the purchases.
“International trade is essential to the economic viability of Indiana corn farmers,” said ICMC President Mike Beard, a farmer from Frankfort. “We thank the delegation from Taiwan for coming here, recognizing the quality of the crops that we grow and signing this agreement. We hope to work with them for many years to come.”
The Taiwan feed association agreed to buy five million metric tons—about 197 million bushels—of corn and 500,000 metric tons of corn co-products. The estimated value of this agreement is $1.1 billion.
The Taiwanese vegetable oil group said it intends to buy between 2.6-2.9 million metric tons, equivalent to 96-97 million bushels, of soybeans in 2020 and 2021. The estimated value is between $1 billion to $1.1 billion.
“We’ve had a long-standing, good relationship with Taiwan. We intend to keep it strong by providing them a quality product,” said ISA Vice Chairman David Rodibaugh, a farmer from Rensselaer.
The agreement was signed Monday in the Senate chambers at the Indiana Statehouse with Lt. Gov. Suzanne Crouch as witness.
Crouch said partnerships like these will benefit all Hoosier farms.
“It is estimated that more than 20 percent of all agricultural production in the U.S. goes to outside markets, like Taiwan,” Crouch said. “They continue to be an important trading partner for Indiana, and we appreciate their renewed commitment today to invest in our farmers and agricultural economy.”
Members of the Taiwan trade delegation said they were pleased to keep this flow of U.S. farm products coming into their country.
“Due to its high quality produce, the U.S. remains one of Taiwan’s largest sources of agricultural products,” said Dr. Junne-Jih Chen, deputy minister of the Taiwan Council of Agriculture. “We are here to demonstrate Taiwan’s continued willingness to purchase U.S. soybeans, and our determination and dedication to promote bilateral agricultural cooperation.
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