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11/14/2006

Ohio Soybean Council Opens Office in China

Contact:

Jamie Mossbarger

Communications Director

614-476-3100

jmossbasrger@soyohio.org

FOR IMMEDIATE RELEASE: November 14, 2006

Ohio Soybean Council Establishes Presence Overseas With New Office in China

COLUMBUS, OH As the saying goes, there is a first time for everything. The Ohio Soybean Council (OSC) and the soybean checkoff can certainly sing to this tune as it explores, for the first time ever, export opportunities in China with the establishment of an overseas office in Shanghai. This first-ever business venture for OSC is a coordinated effort with the Ohio Department of Development's (ODOD) International Trade Division.

"Funding for this office will come from both ODOD and OSC," says Amy Sigg Davis, OSC Chairman and Warren County soybean farmer. "Half of the office's resources will be devoted to promoting exports of Ohio manufacturers, service companies and agribusinesses, along with marketing Ohio as a location for direct investment in a variety of industries. The other half of the office's resources will be devoted to promoting exports of Ohio soybeans, along with marketing Ohio as a location for collaboration and direct investment that enhances the Ohio soybean industry."

Plans for the new office emerged after members of OSC traveled to China with Lt. Governor Johnson in December 2005 and witnessed first-hand the tremendous potential for Ohio soybean farmers in the market. For U.S. soybeans alone, the export market to China has grown from $274 million in1998 to $2.25 billion in 2005 and Johnson is confident that Ohio will benefit from its investment in this new international trade office.

"China is the largest export market for U.S. soybeans, in fact, in 2006 China accounted for 38 percent of total U.S. soybean exports," says Davis. "This is a tremendous opportunity that Ohio soybean farmers should be excited about. As we establish a presence in Shanghai and begin to see what we can accomplish, I think the return on our investment will be outstanding."

According to the Ohio Department of Development (ODOD), Ohio exports in general to China have more than quadrupled since the late 1990s, rising from $231 million in 1998 to $934 million in 2005. In addition to soybeans, major Ohio exports to China include machinery, automotive products, medical instruments and plastics.

"During my visit to China last year, I witnessed the potential for increased export opportunities for Ohio firms and the interest in Ohio as a business destination for Chinese companies," said Johnson. "I believe that this office will be a catalyst for even more growth in Ohio exports and will assist in generating new investments in Ohio by Chinese-owned firms."

The official announcement for the China office came in an address from Governor Bob Taft who is equally excited about the opportunity and is confident that the new office will be of great benefit to Ohio.

"China is one of the world's most dynamic and fastest-growing markets which has led to significant increases in Ohio exports in recent years," Taft said. "Exporting is a crucial component of Ohio's economy and I'm confident that by establishing this presence in China, we'll continue to grow our exports and aggressively promote Ohio to attract business investment in the near future."

While this is a first time OSC has physically established a presence overseas, the Shanghai office is the 11^th international trade office for the State of Ohio.

"The relationship OSC has developed with ODOD's International Trade Division is gratifying," says Davis. "I think Ohio's soybean industry is grateful to be lead by an agency that has such a strong history of international trade experiences and I feel confident that the checkoff investments will pay-off."

All of Ohio's international trade offices are operated through ODOD's International Trade Division and focus on promoting the exports of Ohio companies and marketing the state as a premier location for direct investment by foreign-owned firms. Ohio's international trade office in China will be established through a fee-for-services contract with an existing consulting firm in Shanghai.

The consulting firm of Emerge Logistics will manage Ohio's international trade office in China. The firm was selected as the result of a competitive Request for Proposals (RFP) process and interviews. The office will be led by founder and managing director of Emerge Logistics, Jeffrey Bernstein, who also serves as chairman of the board for the American Chamber of Commerce in Shanghai.

"The structure of the Shanghai office will allow Ohio to benefit from the services of an experienced consulting firm that has a deep knowledge of the region and culture while at the same time allowing Ohio soybean farmers to benefit from the local expertise, says Davis."

Headquartered in Columbus, the Ohio Soybean Council is governed by a 17-member volunteer farmer board, which directs the Soybean Promotion and Research Program. The program's primary goal is to improve soybean profitability by targeting research and development projects through the investment of farmer-contributed funds.

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