Soybean Export, Business Agreements between Perdue Agribusiness and Chinas Dandong Port Group
9/15/2011 6:59:00 PM
RICHMOND â Governor Bob McDonnell announced today that Perdue Agribusiness, Incorporated, which owns and operates a major deep-water export terminal for grains and oilseeds in Chesapeake, has reached agreements to begin exporting soybeans to China's Dandong Port Group Co. and its affiliate Dandong Pasite Grain and Oilseed Co. Ltd. The companies also signed a memorandum of understanding (MOU) to commemorate their new business relationshipand to explore future business opportunities in addition to soybean exports. The contracts and MOU were signed this week in Richmond during meetings hosted by Governor McDonnell. The relationship between Dandong and Perdue Agribusiness was facilitated as a result of the Governor's trade and economic development mission to Asia earlier this year.
Speaking to the new export business, Governor McDonnell said, "Today's announcement is outstanding news for Virginia's soybean producers and Perdue Agribusiness' renowned export facility in Chesapeake. Growingagricultural exports from Virginia is a top priority in my economic development and jobs creation agenda, so I'm very pleased that my administration's work with Dandong and Perdue before, during, and after myAsian trade mission helped the principals reach these agreements. Dandong is gaining a great new business partner in Perdue, and I'm hopeful this isthe just the beginning of a relationship that will benefit our soybean producers, Dandong, and Perdue for years to come."
The MOU and contracts for more than of 100,000 metric tons of soybeans signed this week between PerdueAgribusiness and Dandong Port Group have the potential to catapult China past Canada as Virginia's top agricultural export partner. In 2010, Chinawas the second largest export market for Virginia's agricultural products,with shipments valued at almost $195 million. Overall agricultural exportsin 2010 from Virginia reached $2.24 billion, the second highest total in history.
China's demand for soybeans continues to increase, driven by increased use in animal feed production and higher vegetable oil consumption levels amongst consumers. This increased consumption is the result of continuing economic growth in China and rising levels of disposable income. The United States, Brazil and Argentina are the largest suppliers of soybeans to China. The value of soybean sales from the United States toChina topped $4.7 billion in the first half of 2011, with the majority of these exports originating from ports in the Gulf Coast or West Coast.
"We are excited about the opportunities presented by this new partnership withDandong and about the potential to help meet the increasing demand from China's growing economy," said Jim Perdue, Chairman of Perdue. "We are grateful to Governor McDonnell and his team, and to the Commonwealth of Virginia, for introducing us and facilitating this transaction."
"We are very pleased to begin our business relationship with Perdue Agribusiness," said Mr. Wenliang Wang, the Chairman of the Dandong Port Group and Dandong Pasite Grain and Oilseed Co. "Perdue's reputation as being a leading global grain and oilseed processor and exporter will undoubtedly serve Dandong well as we continue to grow our soybean and grain purchases. We want to particularly thank Governor McDonnell for his leadership in helping to foster our