December 26, 2013

China's soy imports from US soar

Soy is widely used in China for cooking oil and animal feed. Many Chinese consumers have shifted away from eating a diet primarily composed of grains and have become accustomed to having more oil and meat.

According to American Soy Association (ASA) Vice President Kevin Hoyer, this shift in dietary habits is an indicator of economic success and is demonstrated by China's fast modernisation pace of livestock and the food supply chain.

"The demand for soymeal, edible oil, and soy-based fish and hog feed will provide many opportunities for the US soy exports. We have seen lots of potential in these sectors," Hoyer said.

USSEC Country Director-China Zhang Xiaoping said it would be difficult for China to quickly increase its soy output because farmers in the Northeast provinces cannot get more land or convert land grown for other crops such as corn and rice.

The cost of raising domestic output is high due to rising farming equipment prices and limited arable land.

In the first three quarters of 2013, China's edible oil imports rose 9% on-year to 5.98 million tonnes, which indicates the country's widening gap in edible oil supply and its increasing dependence on the world market for soy and oil consumption.