January 19, 2016
China's feed imports to fall by 30-50%, says Rabobank
According to a recent report released by Rabobank in Shanghai, China plays a crucial role in the global feed grain trade, accounting for 80% of sorghum and 35% of feed barley global imports.
Considering various factors such as the extended pressure to lower the price of domestic corn, potential protective trade policies and non-tariff trade barriers, and the volatility in renminbi (RMB), Rabobank forecasts that China's sorghum and feed barley imports will drop by 30% to 50% in the coming years.
Although there is a real need for the Chinese government to boost domestic corn consumption and absorb the massive overhang in state reserves, the cost of animal rearing will no doubt increase in the future with the decrease in sorghum and feed barley imports as their costs are still significantly lower than domestic corn.
