The move is particularly good news for states like Kansas, which produce a variety of exporable commodities, Kansas State University agricultural economists said. The much anticipated move, coupled with China's accession into the World Trade Organization, means the U.S. will have greater access to a country where demand for wheat, meat, feed grains, and other goods and services is growing as the economy improves - and trade barriers are coming down. As incomes rise, consumers often shift their pufchases to meats. Not only does the demand for meats increase, but the demand for grains also rises due to greater demand for feed required to produce meat products. He cited Japan, noting that after World War II, that country's standard of living improved and food consumption patterns changed.
Japan is now the largest importer of U.S. beef and pork.
If China follows Japan's increase in standard of living and accompanying changes in food consumption patterns, the demand for products from the U.S. is likely to expand. Flinchbaugh, who is K-State Research and Extension's state leader in agricultural policy, also serves as chairperson of the Commission on 21st Century Production Agriculture. The commission was established to evaluate the last farm bill and to recommend to Congress what federal agricultural policies should be in place after it expires in 2002. At over 1.2 billion people, China's population dwarfs that of other countries. While it's still below other Asian markets, it is expected to keep rising.