‘Tumekataa’ China has refused to eat beans grown in the US

In yet another ugly move, China has cut deals with the US on the purchase of grain legumes.

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Beijing has stopped buying the commodity from the US. China is the largest buyer of Soya Beans and the US is the largest producer of the crop.

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Verified reports indicated that China imported 13 million metric ton of soybeans from the US from a trade agreed on in December. China had by then agreed to buy 10 million tons.

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Apart from soybeans, China is the biggest single consumer of American agricultural produce where it has in the past taken about 60% of the US agricultural exports.

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Seeing the trade fallout between the US and China, President Donald Trump announced a bail out of $12 billion to farmers who’d be affected by the trade wars. The bail out program was put as an emergency measure as Trump looks for long-term deals.

A business report by Vox news showed that many farmers in 2018 operated at a loss subsequent of delays in loan repayments and delayed purchase of products.

A total of 84 farms in the upper Midwest filed for bankruptcy between July 2017 and June 2018, according to the Federal Reserve of Minneapolis. That’s more than double the number of Chapter 12 filings during the same period in 2013 and 2014 in Wisconsin, Minnesota, North Dakota, South Dakota, and Montana

Beijing’s move to boycott US produced agri-commodities will create an impulse in the world market by initially creating a huge demand from other producing nations.

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The move by Trump to compensate farmers is not sustainable and will cripple the economy.

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Kenya can leverage the trade wars and boost it’s agricultural sector to cater for the Chinese market.

 

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