China's growing middle class creates
valuable trade opportunities
A Minnesota agriculture delegation to China heard some startling statistics. China's middle class is expected to increase from 200 million to 400 million people by 2025. They saw first-hand more cars than bicycles on the streets of Shanghai and more high tech factories - a result of China's population and economic boom.
"For many in the group, this was their first trip to China," said Minnesota Agriculture Commissioner Gene Hugoson. "So seeing the country's phenomenal growth and expansion of its infrastructure made them realize the potential it has as an export destination for our products."
Hugoson led the agriculture tour as part of Governor Pawlenty's trade mission to China and Japan, September 9 -18. Hugoson predicts it won't be long before China surpasses Canada as Minnesota's number one trade partner.
Last year, Minnesota exports to China were valued at $1.26 billion, or 8.9 percent of total state exports. This represents a 1 percent increase while Minnesota exports to Canada declined by 21 percent, or nearly $1 billion. More than half of those exports were agricultural products.
"We see the younger generation of Chinese acquiring a taste for foods popular in the West - such as ice cream and pizza," said Hugoson. "There's also an increasing demand for beef and that opens up more markets for Minnesota farmers."
Hugoson and MDA Director of Ag Marketing Services, Kurt Markham, also traveled to the city of Suzhou for the World Biofuels Symposium-a joint effort between MDA and Tsinghua University. Hugoson presented on opportunities, challenges and strategies facing the U.S. biofuels industry
and Markham moderated a panel on world biofuels featuring speakers from the U.S., EU, Brazil and South East Asia.
| 
