December 6, 2011
Rising costs and a cap on edible oil prices are causing losses for China's soyoil producers, a trend that is likely to stay and threaten the country's edible oil supply, an industry insider said.
"If the losses continue, a reshuffling among domestic soyoil processors is likely, with some facing bankruptcy and others being taken over," said Wang Xiaoyu, vice secretary-general of Heilongjiang Soy Association.
Dongling Grain & Oil Co, the country's only listed soy business, sold 116,000 tonnes of edible oil in the first two quarters, down 15.14% on-year, and its net profit fell by 238.57% in the same period on-year, according to sources.
To counter inflation, the National Development and Reform Commission (NDRC) ordered the country's major edible oil producers not to raise the prices for bottles of oil of around four to five litres from last November until June.
Meanwhile, the price of imported soy rose by 31% over the first eight months this year, according to data from the General Administration of Customs.