Soybean deal will ship 8 million bushels to China
Perdue Agribusiness Inc., which owns a deepwater export terminal for grains and oilseeds in Chesapeake, has signed a deal to supply up to 8 million bushels of soybeans to a Chinese company.
The agreement with China’s Jiusan Oil and Grain Industries Group will involve a series of bulk shipments for the 2013-14 soybean crop.
The deal was the result of a trade mission by state government officials to Beijing in April.
In the soybeans deal, up to four ships will be loaded for export in October. Each vessel will hold approximately 55,000 metric tons, or more than 2 million bushels, of soybeans.
The value of the shipments will depend on market prices at the time each order is placed.
State officials expect the deal will mean soybean shipments from Virginia will reach new market areas within China through Jiusan's network of processing plants.
The Jiusan Group, based in Harbin, China, is a subsidiary of Beidahuang Group and one of China’s largest soybean processors and a top soybean importer. The company operates 12 soybean crushing facilities, where the soybeans are processed and soybean oil is extracted.
According to a economic impact study completed this year, agriculture and forestry are two of Virginia's largest industries, with a combined economic impact of $70 billion annually.