Perdue Agribusiness to Ship Soybeans to China from Chesapeake Terminal
By Christopher Dinsmore, The Virginian-Pilot Chesapeake
Perdue Agribusiness Inc. has reached an agreement to export more than 100,000 metric tons of soybeans to China through its port terminal on the Elizabeth River's Southern Branch.
The contracts to export soybeans were announced Thursday by Gov. Bob McDonnell, who said the deal was facilitated by his trade mission to Asia in May.
"Today's announcement is outstanding news for Virginia's soybean producers and Perdue Agribusiness' renowned export facility in Chesapeake," McDonnell said in a statement. "Growing agricultural exports from Virginia is a top priority in my economic development and jobs creation agenda."
Perdue Agribusiness is a subsidiary of Perdue Farms Inc., the nation's No. 3 poultry producer. The unit exports grain and oilseeds through the terminal off Barnes Road in South Norfolk. It employs 110 people at the Chesapeake terminal, said Julie DeYoung, a Perdue spokeswoman.
Perdue's export agreement is with Hong Kong-based Dandong Port Group Co. and its affiliate Dandong Pasite Grain and Oilseed Co., which the governor's office described as China's largest purchaser of soybeans and grains. Dandong Port Group operates ports in China including in Dandong, which is on the Yalu River in northeast China on the border with North Korea.
Perdue Agribusiness also reached an agreement with Dandong to explore other business opportunities in addition to soybean exports.
Demand for soybeans is increasing in China, where they are used in animal feed and vegetable oil, according to the governor's office.
China imported $4.7 billion of U.S. soybeans in the first six months of 2011, mostly from the West and Gulf coasts.
The Perdue soybean exports could push China ahead of Canada as the leading market for Virginia's agricultural products, the governor's office said. China accounted for $195 million of Virginia's $2.2 billion in agricultural exports last year.
"We are excited about the opportunities presented by this new partnership with Dandong and about the potential to help meet the increasing demand from China's growing economy," said Jim Perdue, Perdue's chairman, in a statement.
Perdue will source the soybeans from elevators in Virginia, as wells as Maryland, Delaware, North Carolina and, as needed, the Midwest, DeYoung said.
Perdue Farms already exports a lot of chicken to China, mostly dark meat and feet, or "paws" as they are known in the trade, she said.
A significant portion of McDonnell's trade mission to Asia focused on growing Virginia's agricultural and forestry exports to China.
As a result, agreements also were announced in June between Dandong and Smithfield Foods Inc. to explore commercial opportunities in northern China, and in August between Barboursville Vineyards and the Tianjin Tewoo Group for what is believed to be the first commercial shipment of Virginia wines to China, according to the governor's office.
Christopher Dinsmore, (757) 446-2271, chris.dinsmore@pilotonline.comT
Perdue's export agreement is with Hong Kong-based Dandong Port Group Co. and its affiliate Dandong Pasite Grain and Oilseed Co., which the governor's office described as China's largest purchaser of soybeans and grains.
