March 15, 2004

China Soybean Output Forecast To Grow 6.7% In 2004

China is expected to produce 6.7% more soybeans in 2004 as farmers grow more soybeans following record high prices, analysts and government officials said on Friday.

"If there is no major weather damage, soybean output is expected to reach 17.5 million tonnes," said the official China National Grain and Oils Information Centre in a report.

China harvested 16.4 million tonnes of soybeans in 2003.

Soybean acreage is forecast to increase by 13.5% to 10 million hectares, according to figures from the Ministry of Agriculture.

Heilongjiang province, China's top soybean growing region accounting for 34% of the country's total output, is expected to increase acreage by five percent this year, local officials said.

"We have never seen such high soybean prices before," said a Heilongjiang agriculture official.

Local beans have been selling at prices of between RMB3,000 (US$360) and RMB3,200 per tonne, 28% higher than the highest price during the 2002 harvest, he said.

(US$1 = 8.277 Yuan)