December 24, 2007

China soy imports cost 33 percent more

China imported 21.7 million tonnes of soy in the first three quarters of 2007 valued at US$7.36 billion, reflecting a price rise of 32.5 percent. 

The higher import cost was caused by mounting demand, production cuts and rising transport charges worldwide.

Of the total imports, 99.1 percent came from Brazil, US and Argentina.

From January to September, China bought 8.43 million tonnes of soy from Brazil, down 10.1 percent, and 4.85 million tonnes from Argentina, down 0.1 percent. The imports from the US, on the other hand, amounted to 8.22 million tonnes, up 23.4 percent. 

To curb price rises for soy and edible oil in China, import duty for soy was cut from three percent to one percent as of October 1. The tax holiday would last three months, which would help drive up imports in the coming few months, the customs sources said.