March 27, 2009
China government discusses soy problems with industry
The Chinese government and industry have discussed the problems caused by high domestic soy prices, a senior participant said Thursday (March 26).
"The Ministry of Agriculture held a conference Monday on how to solve the problem and we suggested the government provide subsidies to processing plants to encourage them to purchase domestic soy," said a person with China Soybean Association who attended the meeting, declining to be named.
Higher domestic soy prices, supported by the government's purchase, have triggered a rise in imports, resulting in production suspension at soy processing plants in the northeast.
Meanwhile, farmers are finding it increasingly difficult to sell their soy to the state reserves due to higher quality requirements.
Others at the meeting also suggested the government hike soy import taxes, he said.
Meanwhile, the Ministry of Commerce will hold an urgent meeting from March 31 to April 2 to "learn how (China's soy) industry was impacted" by soy imports, the person added.
