The CEO of Cargill says he is concerned with the long-term health of U.S. agriculture due to impacts from the U.S.-China trade dispute.
Cargill CEO David McLennan told Bloomberg News a long-term dispute with China could squeeze the U.S. out as China turns to other sellers of soybeans, as the nation is doing now. Soybean prices are near the lowest levels in a decade as a result of the trade war and an expected record crop in the U.S. this fall. MacLennan of Cargill spoke with Chinese leaders over the summer who told him the country “wouldn’t back down.” He says speculatively, that means China will find alternative sources of supply, but concedes “price can drive a lot of different decisions.” Cargill is spending more time with lawmakers and government officials expressing desire to see a swift end to the trade war. MacLennan says Cargill recognizes the goal of the Trump administration to make trade more fair and balanced, but says “we just think there are other tactics that can be pursued to improve trade relations.”
Source: National Association of Farm Broadcasting News Service.