August 8, 2018
China possibly decreasing its soybean imports by over 10 million tonnes
In addition to the new soymeal technology and use of supplements such as sunflower seeds, rape seeds and palm kernels, declining demands of soybeanmaybe the integral reasons leading to the likelihood of China reducing its soybean imports by 10 million tonnes in 2018.
According to a research by Yin Yulong with the Chinese Academy of Science, pork output and quality is not affected by lowering the share of protein in animal feed if four specific amino acids can be added at different stages of animal growth.
Zhang Haitao, who is in charge of technology at Guangdong Evergreen Industry Co. Ltd., explained that China has sufficient amino acid production capacity, and just by using low-protein formulas in animal feed, can cut China's annual demand for soymeal by 5% - 7%, totalling to about 5 million tonnes of soybeans.
It is therefore still "operable and sustainable" to lower China's soybean consumption demand by employing low-protein feed, Zhang concluded.
Due to its low prices, soymeal has become a popular option for animal feed. However, as prices rise, it becomes more economically feasible to adopt other alternatives.
Li Qiang, chairman of Shanghai JC Intelligence Co. Ltd., foresees a huge growth in Chinese imports of soymeal substitutes.
"If China increases imports of rapeseed by 2.5 million tonnes, meals from sunflower seeds by 3.5 million tonnes, and meals from palm kernels by 3 million tonnes this year, theoretically the country can reduce soybean imports by 6 million tonnes," Li analysed.
Using soybean alternatives also allows China the room to raise its capacity for self-sufficiency through oil-yielding crops, which is aligned to the Ministry of Agriculture and Rural Affairs' announcement earlier this year, to increase China's soybean planting area by about 666,667 hectares in 2018.
Losses in China's breeding industry since March this year is another co-relation to the decline for soybean products. Soymeal consumption in China dropped 1.3% year-on-year in the second quarter. Analysts have predicted that soymeal demand will continue to fall in the upcoming months.