January 26, 2005

China to boost annual soybean processing capacity

China is constructing and expanding a number of soybean processing projects in the north, east, central and southern areas in hopes of raising its annual processing capacity to 68 million tons in 2005, sources of Zhengzhou Grain Wholesale Market disclosed.

Statistics provided show that ever since 2000, the nonstop construction of large oil processing enterprises has contributed to rapid growth in China's soybean pressing capacity over the past four years. China's daily preliminary pressing capacity of soybean has topped 200,000 tons, with annual processing capacity exceeding 60 million tons at present.

China is preparing for a number of important new constructions and expansions. Currently, there are a number of soybean pressing projects either newly completed, in the midst of construction or soon-to-be constructed.

China has a total of five soybean processing bases - the Northeast China base with Heilongjiang Jiusan Oil Group and Jilin Deda Oil Company as representatives; the Ring-Bohai base with Dalian Huanong Company, Qinhuangdao Jinhai Oil Company, Heibei Huifu Cereals and Oil Company, Shandong Yihai Oil Company and Shandong Huanghai Oil Company as representatives; the Jiangsu-Zhejiang base with Jiangsu Donghai Cereals and Oil Company and Nantong Baogang Oil as representatives; the South China base with Nantian Oil Dreg and Nanhai Cereals and Oil as representatives; and the inland base with Sichuan Jinshi Oil and Shaanxi Bangqi Oil as representatives.

China's edible consumption of soybean topped 8.55 million tons in 2003/04, an increase of 550,000 tons or 7 percent over the previous year. The amount of soybean consumed is all home-grown.

This is the second year in succession that China's edible consumption of soybean has exceeded the consumption for oil production.

In 2002/2003, the proportion of edible consumption of soybean in total home-grown output was 55.5 percent, as against 48.5 percent in the previous year, while the proportion of consumption for oil production has dropped from 41.8 percent to 39 percent.