China's soy imports to rise to record 35 million tonnes

Rising soymeal demand, a lower soy harvest and government plans to build reserves is prompting a record import of 35 million tonnes of soy for China this year, according to an analyst from the China National Grain and Oils Information Centre (CNGOIC).

 

The figure is a 24-percent increase over the previous year.

 

Import growth in 2008-09 is expected to slow to 36 million tonnes as China ramps up its own soy output.

 

China's soy output this year was forecast to increase by 27 percent to 16.5 million tonnes, the centre said.

 

Soymeal demand is growing 5 to 7 percent this year thanks to demand from the pig breeding industry, said the analyst who requested anonymity.

 

China's soy import in June reached was the second highest monthly on record, figures showed. Another reason for the rise in imports this year was the government's plans to stock up on reserves.

 

Analysts have said Beijing plans to import up to 5 million tonnes for reserves, most of which would be shipped into the country this year.

 

Record edible oil prices late last year led to a steep rise in the country's inflation which prompted authorities to offer more incentives to farmers to plant soy.

 

Heilongjiang province, the country's top soy producer, has increased soy acreage by 20 percent this year.

 

Meanwhile, imports of vegetable oils also rose 10.4 percent in the first half of the year to 4.08 million tonnes.