November 8, 2012

China to see slow progress for soy import growth

China's soy imports are expected to rise at a slower pace in the next five years.

Soy imports by China, the world's largest importer, will likely increase by three to four million tonnes annually in the next five years, representing average annual growth of 5 - 6%.

This compared with double-digit growth recorded in the past few years. In the first nine months of this year, China imported 44.3 million tonnes of soy, up 18% on year. The country's soy imports in 2011 fell 3.9% compared with 2010. Soy imports in 2010 rose 29% from 2009, when soy imports grew 14% from 2008.

China's demand for feedmeal is expected to grow 4 - 5% annually in the next five years, slower compared with the last five years.

China's government reserves of soy and rapeseed oil are ample, according to Chen Xuecong, vice general manager of China Grain Reserves Corp's edible oil unit, adding the government is able to keep edible oil prices stable.