Rising agricultural exports to China are helping revive the fortunes of some agribusiness companies and farmers, after the coronavirus pandemic upended the U.S. farm sector.
China’s effort to boost pork production, and buy more U.S. grain and meat following this year’s U.S.-China trade agreement, are driving a surge of U.S. farm goods across the Pacific in recent months, according to government estimates. Growing demand around the world for food staples like vegetable oil and starch are keeping U.S. agriculture companies’ processing plants humming, industry executives said.
“China has come roaring back from the pandemic,” said Juan Luciano, chief executive of Archer Daniels Midland Co. ADM -1.05% , on a conference call last week. “Their recovery has surprised everybody.” Grain giants ADM and Bunge Ltd. BG -2.84% both attributed rising profits during their most recent quarters in part to higher commodities exports.