June 7, 2023
More shipments of Russian soybeans arrive in China
A historic shipment of 271.6 tonnes of Russian soybeans arrived at Manzhouli Port in Inner Mongolia, China on Friday, marking a significant milestone in the recently launched New Land Grain Corridor, Global Times reported.
This corridor aims to enhance connectivity between China and the Eurasian Union countries, including Russia, fostering strengthened cooperation in the agricultural trade sector.
Experts highlight that the import of Russian soybeans not only signifies the deepening win-win cooperation between China and Russia in farming trade but also responds to the market's need to diversify sources of food supplies for enhanced food security.
The shipment will be transported to Tianjin city, where the soybean oil will be extracted before entering the market.
As Russia's soybean supply is projected to increase substantially in the long term, the Manzhouli Port alone is expected to handle approximately 8 million tonnes of Russian grain, including soybeans, annually. This development injects new vitality into the bilateral trade ties between China and Russia.
China, being a significant consumer of soybeans, and Russia, a major grain producer, have prioritised cooperation in the soybean sector since the signing of a development plan in 2019. The collaboration covers various aspects, ranging from cultivation and processing to research, development, and trade.
Kang Shuchun, a director of the China Federation of Logistics and Purchasing, views the first shipment through Manzhouli Port as a significant milestone in China's grain import strategy and offshore farming cooperation, adding that this new trade route addresses the pressing need to reduce dependence on a single country, such as the US.
China currently imports around 85% or nearly 100 million tonnes of domestically consumed soybeans from overseas, with the US and Brazil being the primary suppliers. To enhance food security, experts stress the importance of increasing soybean production capacity and domestic self-sufficiency rates.
Li Ziguo, a senior research fellow with the China Institute of International Studies, said that there is an issue of supply chain security and stability in trade between China and the US.
Li said after the opening of more logistic lines including the Tongjiang-Nizhneleninskoye railway bridge, bilateral trade is now made easier and faster, Li said.
- Global Times