USA— Taiwan has signed a letter of intent to buy about US$2 billion worth of soybeans and US$600 million worth of corn from the Illinois Soybean Association (ISA) and other Illinois commodity groups over the next two years.
The letters commit to the sale and purchase of between 96 million and 107 million bushels of soybeans and 59 million bushels of corn, in addition to other corn byproducts.
This signing follows a recent announcement from the Taiwan Vegetable Oil Manufacturers Association (TVOA) that it intends to purchase between 2.6 million and 2.9 million MT of U.S. soybeans between 2023 and 2024.
The letters were signed by Illinois Governor J.B. Pritzker, U.S. Senator Tammy Duckworth, representatives of the Taipei Economic and Cultural Office in Chicago, and the Taiwanese Department of Agriculture between the Illinois Corn Marketing Board, Illinois Soybean Association, Taiwan Feed Industry Association, and the Taiwan Vegetable Oil Manufacturers Association.
“The signing of the MOU signifies a step towards global trade security,” said ISA Chairman Steve Pitstick. “And it reinforces ISA’s commitment to maintain the security of international supply chains, while facilitating legitimate trade relationships.”
In 2021, the total value of U.S. agricultural and related products exported to Taiwan reached US$3.94 billion, making it the seventh largest market for U.S. agricultural exports. The U.S. supplies about 27% of Taiwan’s agricultural imports.
The MOU, which will work to create an agreement that advances the interest of Illinois’ farmers, seeks to support and grow the Illinois ag economy with more robust trade opportunities with Taiwan.
“We value the opportunity for transparency and cooperation because trade is vital to Illinois’ 43,000 soybean producers,” Pitstick said.
“Roughly 60% of the nearly 672 million bushels of the soybeans grown in Illinois are exported, resulting in an estimated US$4 to US$5 billion in value.”
Earlier this month, in a separate agreement, Taiwan agree buy 66 million bushels of wheat from the United States over the next two years. The grain deal is worth about US$576 million and is expected to be fulfilled largely by Kansas farmers.
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