May 9, 2012

China's soy sector faces crisis

There is difficulty in buying domestic soy which in turn, seriously puts the soyoil processing sector in China's Heilongjiang Province at risk.

Industry insiders said Monday (May 7) that State subsidies are urgently needed to support the soy industry, Global Times reported.

"'At least 80% of the 147 major oil mills in the province have suspended their production mainly due to the lack of raw materials,"' said Wang Xiaoyu, vice secretary-general of Heilongjiang Soybean Association.

"'And because of the relatively high transportation costs, the mills cannot make purchases of imported soybeans,"' Wang added.

Song Shengbin, chairman of Heilongjiang Longjiangfu Grain (Industrial) Group Co, shared Wang's view, though his company has managed to stay in operation, the Global Times reported.