March 13, 2012

China sees 2012/13 oilseed production at 56 million tonnes

China's total oilseed production for marketing year 2012/13 is forecast at 56 million tonnes, a slight adjustment of 1% from last year's estimated 56.6 million tonnes.

Total oilseed demand will stay strong, particularly for soy, with marketing year (MY) 2012/13 consumption forecast at 118 million tonnes up from an estimated 113.6 million tonnes in MY 11/12.

Consumer affluence will drive soy imports to 59 million tonnes in MY 2012/13 to meet increasing demand for animal products and vegetable oils.

Rising consumer affluence is driving demand for animal and fish protein. In response, advancements in concentrated animal and aquatic production, growth in the feed industry and expansion in the crush sector are spurring demand and need for imports to supply feed protein sources, such as soy and rapeseed meal.

Total oilseed imports in MY 2012/13 are forecast to reach 60.9 million tonnes from 57.5 million tonnes in MY 2011/12.

China is the world's largest oilseed consumer. Population growth and dietary demands overwhelm stagnant domestic production capabilities, leaving China dependent on foreign suppliers, particularly the US, Brazil and Argentina, to meet its supply gap.