U.S. Grass Grows Green Profits China

By Alexander Kameny

Grass conjures up thoughts of lazy summer days spent on green lawns. But when it comes to seed trade with China, grass brings to mind another kind of green–profits.

The story of grass’ success in China is one of a trade group’s initiative and wise use of an FAS marketing program.

"When we look back on it, we feel a little overwhelmed by our success in the People’s Republic of China," said David S. Nelson, executive secretary of the Oregon Seed Council. "We got involved with FAS’ Market Access Program (MAP) in 1992 and found it of enormous benefit in introducing products not only in China, but also in Mexico and Chile."

The volume of grass seed imports from the United States increased 22 percent during the first half of marketing year 1998/1999 over the same period in 1997/1998. The marketing year for seeds runs from July to June. This increase was, reportedly, thanks in part to the trade association’s efforts. And the opportunities in China could get even better.

Changes in China for Seed Trade

The market for seed trade in China may be great, but there are changes being planned that all seed exporters should know about.

China recently gained accession to the International Union for the Protection of New Varieties of Plants. As a member, China will be able to apply for international recognition and seed variety protection of its plants. China will also be required to respect other member countries’ protected planting seeds.

A comprehensive new seed law is being drafted with an aim to bringing all phases of seed production, management and sales under one set of rules. Presiding over debate and approval of the law is an agricultural committee, which was organized by China’s State Council.

A draft of the seed law is currently being debated by seed-related government departments, seed companies and research institutions. Release will probably be delayed through the end of 1999.

A Case Study in Marketing

Since 80 percent of China’s imported grass comes from Oregon, the state has a big stake in marketing. Thus, the Oregon Seed Council represents several trade groups, including grass seed growers This trade group used FAS and its university connections to galvanize a niche market.

Nelson said he found out about MAP through the American Seed Trade Association. Since MAP was created to help smaller agricultural trade groups expand their markets, Nelson was delighted to learn the program served smaller associations like his, with "boutique" niche markets.

He adds that he appreciates how the MAP application process helped the seed council analyze its marketing strategies. He also welcomed the assistance of ProMar, a private company contracted to perform an in-depth study of marketing strategies of participating MAP organizations. Their assistance helped the seed council focus its international marketing efforts.

Nelson’s group also had contact with turfgrass and forage scientists at the University of Oregon, who in turn had colleagues in China, some of whom had even studied at universities in the United States.

The state seed council put some of the MAP money to work, visiting Chinese scientists and establishing vital business links.

They made contacts at two of China’s major agricultural universities: China Agriculture University in Beijing and Nanjing Agricultural University in Nanjing, and through them developed contacts with other, smaller schools with an interest in agriculture or erosion control. China National Seed Company also got involved.

Later, MAP money would help fund demonstration projects, growing plots of U.S. grass in China so that scientists, nursery experts and others could see them first-hand and judge their quality and adaptability to China.

Seed producers in Oregon grow five main kinds of grass, some of which are adapted to feed, others are better as lawn turf or erosion control. In order to give the Chinese a broad sample and to ensure that each company was fairly represented, the trade association created a 20-member "MAP Committee" that included representatives from the various grass seed companies and seed growers, Oregon State University and the Oregon Department of Agriculture.

The board selected three to four samples of grass species from different companies.

Shipping Grass Seed to China

Nelson said the three main provinces serve as shipping locations for grass seed: Shanghai, Hong Kong and Fujuo. Early in the exporting process, there was some concern in China about TCK-smut, a disease found in U.S. wheat. Grass seed may be shipped in containers that previously stored wheat, so the grass seed exporters took precautionary measures to avoid contamination.

Planting the Seed for Market Growth

Now that FAS and the Oregon Seed Council have begun to open this market, seed companies in Oregon are expanding with their own initiatives to enhance exports.

Several seed companies have opened their own offices in China or made connections with Chinese seed distributors. But something even more exciting is in the works.

A new demonstration project called the China National Turf Variety Program was launched last fall. It will be living proof of the U.S. grass products’ attractions in wide ranging parts of China–from Kunming Province in the southeast to Harbin Province in the north. That area is comparable in scope to one ranging from Florida to Maine in the United States.

All U.S. grass seed producers may participate, provided they pay their own expenses. Contact Dr. William C. Young, III at Oregon State University for more information. Tel.: (541) 737-5859.

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Alexander Kameny is an agricultural specialist with the FAS office of Agricultural Affairs in Beijing, China. Tel.: (86-10) 6532-3431; Fax: (86-10) 6532-2962; E-mail: agbeijin@fas.usda.gov

David S. Nelson is the Executive Secretary with the Oregon Seed Council, Salem, Oregon. Tel.: (503) 585-1157; Fax: (503) 585-1292; E-mail: dlnassoc@aol.com

How Nature and Need Help Trade

Most U.S. citizens think of grass as lawns and golf courses, but there’s a more vital reason for this crop. It is an effective erosion control.

It’s no secret that parts of China, just like places in the Southeastern United States, have trouble with flooding and soil loss. Grass strips or patches of grass barriers can sometimes help.

Erosion is especially bad in Yichang and Wuhan provinces which border the Yangtze River. Two years ago, the problem made international news when extreme flooding hit the area hard. During the month of September alone, the river crested eight times.

Moreover, in the northern parts of Mongolian China, wind erodes valuable soil. In 1998, dust clouds in that region became so bad that they impacted U.S. air quality.

Grasses grown to control erosion in this region would have to be tough. Dry conditions and strong winds are not gentle keepers of plant life. Native grasses of the U.S. desert, along with other grasses from around the world, are candidates for a new study on how to stem this wind-borne wounding of the soil and air.

While the MAP-funded demonstration projects have already shown that U.S. grass will work as a food for livestock, their promising potential in erosion control will soon be put to the test in China.

There may be even more opportunities for U.S. grass seed in the future with the construction of the Three Gorges Dam. Built to tame the troublesome Yangtse River, the dam will create a body of water the size of Lake Superior.

This project will require grass not only for erosion control, but for livestock-feeding forage for approximately two million farmers, who must be relocated out of the river’s path to safer ground.