November 20, 2007

 

China to increase soy imports in lieu of growing demand

 

 

China will need to import more soybeans, palm oil and other oilseed products to meet growing demand after local farmers reduced plantings.

 

China's imports account for 45 percent of international trade in soybeans, according to Wang Yinji, deputy general manager of Cofco Ltd.

 

China's purchase pushed up the price of soybeans traded in Chicago by 56 percent this year to touch a 19-year high this month.

 

Meanwhile, demand for vegetable oil in China grew 6.8 percent a year for the past 12 years, three times faster than in the US, Wang said.

 

Soybeans will continue to be the leading source of vegetable oil for China, accounting for 41 percent of total supply by 2010.

 

Economic growth was seen to increase vegetable oil consumption as improved living standards encourage people to eat more oil-rich foods, Wang observed.

 

China's gross domestic product per capita is set to double by 2010, compared with 2000, he said.

 

The government introduced policies, including boosting subsidies, to restore plantings this year.

 

The level of output may recover to 2003's level and rise by 3 percent every year by 2010. However, the rate of increase will not be enough to stem the rising imports, Wang added.

 

Customs data showed China's vegetable oil imports rose 27 percent in the first 10 months of this year.

 

Imports of soybeans grew 4.5 percent in the first 10 months to 24.5 million tonnes.