Chinese officials have found themselves in a precarious position, and they are seeking help from Nevada's alfalfa farmers.
The world's most populous country has 5 million head of dairy cows, and not enough nutritious hay to feed them.
The Nevada Commission on Economic Development was asked by the provinces of Liaoning, Hebei and Shandong to recruit a group of alfalfa farmers to come to China and grow better feed.
Al Di Stefano, director of global trade and investment at the commission, said Thursday that China has been buying U.S. cows to supply the increasingly Westernizing diets of Chinese consumers, but one key component is missing.
"They (the Chinese) don't know how to grow alfalfa, where to grow it and they don't have the seeds, so they are saying, 'you guys come over and grow it,'" he said.
Di Stefano said the quality of dairy products from China has been poor because the country didn't have high-producing breeds of cows, or the high-protein grain to feed them. The U.S. has perfected dairy cow breeding and diets, which Di Stefano said has only recently begun in China.
Lt. Gov. Lorraine Hunt has said that China represents a large market for Nevada products and tourism.
"Nevadans can profit from the Chinese customers who need to purchase our knowledge and our products," she said.
The commission approached several growers' associations looking for those who are interested. Di Stefano said he wants to get this project going, before China asks growers in neighboring states. Di Stefano said he hopes to gather a group of about a dozen growers to take to China. He is working on a grant to fund this trade mission.
"They've identified a couple of sites they think are appropriate," he said. "We'll have growers go over and look at (the sites) and then ask, 'you think you can grow Nevada quality alfalfa there, yes or no?'"
Di Stefano said several factors will determine whether or not a site will work, including water, soil quality and access to a main road for distribution.
The U.S. exports alfalfa to Japan, Korea and Taiwan. But he said the amount of alfalfa required to feed dairy cows in China would be too large to export.
"They've calculated it would take a quarter million acres of alfalfa to feed the current dairy industry in China," Di Stefano said.
Since foreigners can't own land in China, he said the easiest way for a farmer to get started would be to create a joint venture with a Chinese company that owns the land. Di Stefano said he believes this would be a lucrative investment for a Nevada grower or company.
China is ranked 112 out of 155 countries on the economic freedom scale, according to the 2005 Index of Economic Freedom. Its category is "mostly unfree," partly because of high levels of restrictions in banking and finance and high barriers to capital flows and foreign investment.
The report also labels China's top income tax rate at 45 percent. The top corporate tax rate is 30 percent, down from 33 percent a year ago.
Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.
GROW Hay in China
Nevada alfalfa growers interested in traveling to China to meet with government officials to discuss joint venture opportunities can contact Al Di Stefano at the Nevada Commission on Economic Development at 687-4325 or ccintl@bizopp.state.nv.us.
