October 25, 2004

China To Produce 21 Million MT Soymeal In 2004-05

China is expected to produce 21.17 million metric tons of soymeal in the 2004-05 crop year to cater to its rising protein feed demand, up from 18.85 million tons in 2003-04, an official at a research unit of the State Grain Bureau said Friday.

The crop year starts Oct. 1 and ends Sept. 30.

Total soymeal demand in 2004-05 is expected to reach 20.04 million tons, according to Cao Zhi, an official at the China National Grain and Oils Information Center, up from 18.65 million tons in the last crop year.

Because of a production deficit, China imports large quantities of soybeans each year. The country is the world's largest soybean consumer and largest importer.

Cao said China's soybean imports are mainly driven by demand for soymeal, one of the two end-products from soybeans. The other is soyoil.

He said CNGOIC expects China to import 19.5 million tons of soybeans in 2004-05, up 18% from 16.5 million tons in 2003-04.