July 21, 2011

China's soy planting area continues to fall, shrinking by 10 million mu (670,000 hectares) from 2010 and 20 million mu from 2009, according to the National Development and Reform Commission (NDRC).

With a withering acreage, soy output in 2011 is set to fall from the 2010 production of 14.5 million tonnes, while demand for the crop is to reach 55 million tonnes this year.

As much as 80% of soy on the Chinese market is imported, according to Fang Yan, vice-director of the rural economy department at the NDRC. Soy imports are expected to drop to 51 million tonnes this year, down 6.9% from 2010, according to the China National Grain and Oils Information Centre.

It would be the first time soy imports fell since 2004, the centre said. But it projects the import volume to rise to 54 million tonnes in 2012.

China imported 54.8 million tonnes of soy in 2010, up 28.8% on-year, according to Customs.