(IARN) – Agricultural stakeholders want to know: Will China uphold purchase intentions outlined in the Phase One trade deal?
The jury is still out, but sources close to the matter offer their views.
A high-ranking U.S. Department of Agriculture (USDA) official last week stated China may only purchase $14 billion worth of U.S. farm products this fiscal year, reports the Washington Post.
The projection falls short of the previously mentioned $40 billion. However, Robert Johansson, chief economist at the USDA, stated otherwise, as he spoke to the Coronavirus outbreak at the 96th annual Ag Outlook Forum.
“Private sector forecasts lowered their estimates of China’s first-quarter gross domestic product by as much as two-percentage points. It’s far too early to tell what the final impacts will be, but most of those forecasting operations expect the second, third, and fourth quarter in China to rebound,” Johansson said.
U.S. Secretary of Agriculture Sonny Perdue cleared the air, squashing all inconsistencies.
“The World Agricultural Supply and Demand Estimates report that was referred to earlier did not contemplate the Phase One (deal),” Perdue said. “We talked about that, and it was determined not to include that initially. We do believe those numbers will be surpassed.”
Story courtesy of the Iowa Agribusiness Radio Network.
Image from KIWA Image Archives.