September 4, 2007

 

China promises tougher inspections would not affect soy trade

 

 

China's Ministry of Commerce said it would not interfere in the country's soy imports after worries surfaced that the inspections would lead to longer delays and even shipments being turned back.

 

China has previously criticised the quality of US soy, saying that dirt and other contaminants were found in shipments. Traders have reported tougher inspections since then which has led to longer delays. US soy accounts for almost half of the soy shipments imported into China. 

 

The tougher inspections were widely believed to be part of a trade spat between the US and China as both continued to accuse each other of exporting shoddy products.

 

China turned back numerous Brazilian soy shipments in 2004, causing millions of dollars in losses.

 

China assured the industry that tougher inspection standards would have no long-term impact on the volume of purchases.

 

Saying there would be some short term effect, Huang Hai, assistant minister of commerce, said trade would return to normal after exporters adjust to the tougher quality standards.

 

Some soy shipments did take longer to clear inspection procedures, but problems were only found with one or two cargoes,' said Bao Jing, an oilseed analyst with Shanghai JC Intelligence Co., the country's biggest independent commodity research company.

 

The effect was more psychological, he added.

 

China's soy imports have almost doubled since 2003-04. Imports from January to July rose 2.6 percent to 16.9 million tonnes, nearly half from the US.

 

Foreign soy shipments may now have become a crucial part of China's animal breeding industry too crucial to put at risk.

 

This is particularly so coming at a time when feed demand is finally picking up after months in the doldrums.