November 16, 2007

Soy imports more costly for China as Argentina raises soy tariff

China's soy imports might become more expensive as its third largest exporter, Argentina, raises its soy tariff last week from 27.5 percent to 35 percent. 

With a slump of 20.2 percent or 388.5 kilograms per hectare from last year's soy production, China imported 24.54 million tonnes of soy, a 4.5-percent increase on-year.

From January to September this year, China imported 4.85 million tonnes of soy from Argentina.

However, the next two months may bring in more expensive imported soy as 

Argentina announced a raised soy tariff. Argentinean government also lifted the wheat and corn export tariffs to 28 percent and 25 percent respectively to increase revenue.

Argentina's soy production has increased fourfold in the past 10 years. For its 2007/08 production, soy exports was projected to hit 10.2 million tonnes, accounting for 14 percent of global soy exports. Ten years ago, Argentina's soy exports totalled 2.82 million tonnes.

Argentina is China's third largest soy supplier, behind Brazil and the US. The country accounts for 22 percent of China's soy imports.