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China Lessens Reliance On US As It Signs Continous Corn Supply Deal With South Africa

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China, seeking to diversify its food supply and lessen reliance on the United States, has made its first-ever purchase of corn from South Africa.

In an effort to broaden import sources, a cargo ship carrying corn from South Africa recently docked at the Mayong port in Guangdong province, southern China.

The move comes as China looks to reduce its heavy dependence on the US and Ukraine, which have traditionally accounted for over 90% of its corn supplies, as reported by the state newspaper Global Times.

China Lessens Reliance On US As It Signs Continous Corn Supply Deal With South Africa

This initial shipment of 53,000 tonnes of feed corn, which arrived on May 4, signals the beginning of regular corn shipments from South Africa to China.

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South Africa has experienced a remarkable fourth consecutive year of bumper corn crops, despite a wet start to the season. Corn, in both yellow and white varieties, represents 90% of the country’s total grain production. Yellow corn is primarily used for animal feed, while white corn is sold for human consumption.

As Africa’s largest corn producer and a significant exporter, South Africa also supplies white corn to Zimbabwe, Botswana, and Mozambique, with Taiwan, Japan, and Vietnam being its main markets. However, adverse weather conditions may result in a smaller harvest, potentially halting the country’s exports.

In addition to turning to South Africa, China has also started purchasing corn from Brazil as part of its strategy to reduce reliance on US corn.

China Lessens Reliance On US As It Signs Continous Corn Supply Deal With South Africa

Furthermore, it has canceled orders for corn from the US, possibly due to concerns over escalating tensions and potential food sanctions. The ongoing conflict between Ukraine and Russia has disrupted Ukraine’s corn exports, adding to China’s motivation to explore alternative suppliers.

These recent developments highlight China’s efforts to diversify its corn imports, safeguard food security, and navigate the shifting landscape of global trade relations.

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