August 17, 2006

China's soymeal imports to grow as fishmeal becomes more costly

China's imports of soymeal are estimated to jump 13-fold from 69,000 tonnes in 2004/05 to 900,000 tonnes in 2005/06 due to the strong growth of its animal-husbandry industry.

If so, this would mark the first time in five years that China is importing soymeal at significant volumes.

The growth of China's animal-husbandry industry meant a burgeoning protein meal demand. China's protein meal demand is expected to grow by 10 percent in 2005/06 from 40 to 44 million tonnes.

China's increased soymeal imports are likely caused by reduced imports of fishmeal from Peru. Factors such as lower supplies and high prices are forcing China's animal feed industry to source for alternatives. 

As demand shifts towards soymeal, India, with ample and inexpensive supplies, has become an increasingly important supplier for China.