April 17, 2023

 

China rolls out a three-year action plan for soybean meal reduction

 

China's Ministry of Agriculture and Rural Affairs said the country is rolling out a three-year action plan for the reduction and substitution of soybean meal in animal feed, as part of China's efforts to ensure the stable and safe supply of food and important agricultural products, The Global Times reported.

 

The announcement comes in response to the growing needs for addressing the imbalanced supply and demand of domestic animal feed, in which soybean plays a major role, according to experts.

 

The experts predict that imports, which currently account for the majority of soybean supply, will be further reduced and replaced by diversified supplies primarily from domestic production.

 

Experts predict that the structural change will have an impact on soybean imports from the US, China's major supplier.

 

The country will strive to reduce the proportion of soybean meal in feed by more than 0.5 percentage points per year, and to reduce the proportion of soybean meal in feed from 14.5% in 2022 to less than 13$ by 2025, according to the ministry.

 

Dai Xiaofeng, former director of the Chinese Academy of Agricultural Sciences' Institute of Feed Research, said that the ministry's announcement came at an opportune time as part of the government's ongoing efforts to address the food security crisis, which is being exacerbated by rising demand for meat products.

 

A series of measures will be implemented nationwide in order to meet the government's target. This includes increasing efficiency, increasing revenue, and adjusting supply chain structure when using plant, animal, and microorganism protein feed resources.

 

New products, new technology, and applications will be strengthened to reduce the proportion of soybean meal in feed as part of efforts to ensure food safety and stable supply of major agricultural products. Domestic production of other animal feeds will be encouraged as well.

 

China, the world's largest pork producer and consumer, is heavily reliant on soybean imports. More than 88% of China's soybeans are imported.

 

After Brazil, the US is the second largest source of soybeans, accounting for 32.42%.

 

Dai said China's soybean imports are relatively concentrated in certain countries and production areas, posing a potential risk to food safety.

 

In response to the situation, the Chinese government has advocated for a reduction in soybean imports in the years 2021 and 2022, and the effect has been noticeable.

 

China's soybean imports totaled 91.08 million tonnes in 2022, a 5.44 million tonne decrease year-on-year. This was the second year in a row that soybean imports fell.

The expert said that the government's move is not targeted at any particular country, and that it is only part of a series of efforts to diversify supply sources and expand domestic production.

 

-      The Global Times