China's big soy imports to continue; corn supply a concern

China does not mind the continued reliance on large volumes of soy imports but is concerned about corn supply amid increasing domestic demand.

 

"Big imports of soy will continue. In future, China will need 60 million tonnes of soy, of which two-thirds will be imported," said Qian Keming, director-general of the Agriculture Ministry's Department of Market and Economic Information.

 

China's own soy production would remain roughly at the current level of about 15 million tonnes, but even at a maximum of 20 million tonnes, domestic output would still fall short of demand, Qian said.

 

China imported a record 42.6 million tonnes of soy in 2009, a rise of 14% from 2008, mainly from the US and South America.

 

"Corn is what we are most concerned about because domestic demand is increasing rapidly while supply will tighten in the long term. We cannot import two-thirds from the world market like soy," Qian said.

 

If China imports, world markets, including the US, the largest exporter, could only supply 15-20% of China's demand, he estimated.

 

China aims to increase its grain production capacity by 50 million tonnes in the coming decade from around 530 million tonnes now and the government has vowed to do more to support grain farmers.