September 9, 2009
US soy growers aim to tap rural China's feed market
Soy growers in the US, the world's biggest supplier, aim to increase livestock feed sales to rural China to boost exports, the United Soybean Board said.
US growers hope the expansion of the world's third-largest economy can boost demand for meat and encourage China's farmers to switch to feed meals to lift productivity.
China's feed industry consumes about 100 million tonnes of protein meal annually, with half of that used by small landholders who often feed table scraps to their chickens, hogs and dairy cows, said Thomas Wray, a director of the board.
Only about 30 percent of China's protein meal needs are met with soymeal, he said.
China's economy expanded 7.9 percent in the second quarter from a year earlier, fuelled in part by RMB4 trillion (US$586 billion) in stimulus spending.
If China developed its service industries and ensures easier access to consumer products and credit, it would increase domestic consumption by as much as RMB15 trillion (US$ 2197.5 million) by 2025, more than France's annual economic output, the McKinsey Global Institute said August 21.
US$1 = RMB6.82993 (Sept 9)
