April 21, 2009
Heilongjiang's 68 major soy processors halt production
A total of 68 major soy processing companies in Heilongjiang Province, the main soy production region in China, have suspended their operations as they suffered losses due to the widening price gap between imported and domestic soy.
This is expected to cause serious damage to the industry chain of domestic soy processing and sales, according to Liu Deng-gao, deputy chairman of the China Soybean Industry Association.
Currently, the purchasing price of domestic soy stands at RMB3,700 (US$541.6) per tonne while imported soy fetches RMB3,200 (US$468.4) per tonne.
Cao Zhi, head of the analysis and forecasting centre in China National Grain and Oils Information Centre, said the reason for soy imports to grow so sharply was due to the increased procurement of domestic soy by the Chinese government.
