[Source / Observer Network, Ruan Jiaqi]

"If the US and China reach an agreement, no industry will be happier than them." The Wall Street Journal noticed on the 14th report that after the joint statement of the trade talks between China and the US was released, the joy of California's pistachio growers was self-evident.

The US media reported that in California's Central Valley, which is known as the "capital of American pistachios," these growers had been worried that after Trump reignited the trade war with its largest customer, China, they would suffer "devastating losses."

However, after the weekend talks, the deadlock in Sino-US trade was "unfrozen," and both sides agreed to reduce tariffs by 115% within 90 days. On May 14th, the latest tariffs between China and the US were implemented.

"This is definitely good news," said Stuart Wolf (Stuart Woolf), a pistachio grower from Fresno County. "Life can be better without so much uncertainty. For now, pistachio growers should feel better."

The Wall Street Journal mentioned that Trump sided with farmers in the dispute over water allocation between the federal government and California. He demanded more water be allocated to farmers in California. Many local farmers expressed their support for him because of this.

Wolf, 65, also approved of Trump's measures regarding water, but he emphasized that if farmers lost a large market like China, it wouldn't matter how much water the government provided.

"With such a huge output, we need more buyers, not fewer," Wolf said. "You can get all the water you want, but if you lose the market, it's all meaningless."

A pistachio processing plant in California is manually sorting. US media video screenshot

The Wall Street Journal cited federal data stating that since 2017, the value of US pistachio exports to China has soared 19 times, reaching $842 million last year, accounting for nearly one-third of the crop's total production value of $3 billion. Industry officials said that Chinese consumers favor the taste and health benefits of pistachios, and the Chinese translation of "pistachio" also reflects this preference.

In California, the largest agricultural state in the US, pistachios have become the third-largest export agricultural product, second only to almonds and dairy products. The industry's dependence on the Chinese market is increasing day by day. However, similar to Trump's first term, American farmers have always been at the forefront of the trade war. As the leading producer of pistachios globally, California growers face particularly prominent risks.

They still remember that during the trade war initiated during Trump's first term, China turned to Australia for almond purchases, reducing its reliance on imports of US almonds and other nut products from 94% to 53%, causing prices of related products to continue to decline. It wasn't until last year that they finally rebounded.

Until Monday, pistachio growers in California were still worried about history repeating itself, fearing a harsh market crash.

Last month, Dave Puglia, president and CEO of Western Growers, an organization based in Irvine, California, looked gloomy. He sighed deeply, "With such a large output entering a market, and the market gate closing, everyone could only look at each other and ask, 'What now?'"

But by this Monday, Puglia was completely different, full of energy. He excitedly told the US media that after the new tariff agreement between China and the US was reached, people are even more looking forward to the market access for US specialty agricultural products, which could "transition from a temporary status to a permanent feature in Sino-US trade relations."

However, as The Wall Street Journal pointed out, few industries have felt as relieved as pistachio growers after the temporary ceasefire in Sino-US trade. Many American farmers, including soybean, wheat, and corn growers, remain worried.

According to a Reuters report on the 13th, US soybean growers said that the current tariff suspension agreement is not enough to help American farmers resume soybean sales to China. They urged the US to make further concessions; otherwise, American farmers cannot compete with Brazilian soybeans. They complained that Brazilian soybeans already have a price advantage and do not bear additional tariffs.

The report stated that Chinese buyers have recently avoided US wheat and purchased 400,000 to 500,000 tons of wheat from Australia and Canada. According to data from the National Pork Producers Council (NPPC), even during the "ceasefire," pork exports to China still face a comprehensive tax rate of at least 57%.

More crucially, the 90-day "ceasefire" period will expire before American farmers begin harvesting soybeans and corn, which is an important period for exports. Due to lower profits from soybeans compared to corn, the planting area of US soybeans has already decreased year-over-year this spring.

American farmers are pinning their hopes on trade negotiations to push China's purchasing actions. However, Even Rogers Pay, an agricultural analyst at Beijing-based consulting firm Trivium China, pointed out that due to the continued existence of trade barriers and uncertainties after the suspension period expires, Chinese importers are unwilling to sign large orders. "Multiple factors constrain this trade ceasefire from becoming a blessing for farmers."

This article is an exclusive contribution from the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7504587620035445300/

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