High reliance on imported soybean affects china's edible oil security


Published on

China's import of soybean is estimated to hit a historic high in 2012, and the high reliance on imported soybean may bring risks to China's edible oil security.

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

High reliance on imported soybean affects china's edible oil security

  1. 1. High Reliance on Imported Soybean Affects Chinas Edible Oil SecuritySummary: Chinas import of soybean is estimated to hit a historic high in 2012, and thehigh reliance on imported soybean may bring risks to Chinas edible oil security.Tag: agriculture, investment, soybean, oil, demand, import, planting area, consumption, output,productionAccording to statistics from China Customs, in the first half of 2012, China imported 29.05 milliontonnes of soybean, up 29.05% over H1 2011. Since the planting area of soybean in China hasdecreased this year, its estimated that Chinas import of soybean will set a new record in 2012,and the high growth of import volume in H1 2012 is a signal, according to CCM’s July issue ofAgriChina Investor.Soybean is a major source of edible oil in China. With the increasing demand for edible oil fromurban residents and the declining planting area of soybean, Chinas import of soybean has beenincreasing year by year over the past decade.Since 2003, China has surpassed the European Union and become the largest soybean importerin the world. In 2010, Chinas soybean import volume hit a historic high of 54.80 million tonnes. In2011, it decreased slightly by 3.9% to 52.64 million tonnes. The import volume of soybean inChina climbed by 90% from 2004 to 2010.According to the data from Chinas National Grain and Oils Information Center, the annualconsumption volume of edible oil in China reached 20.5kg per person in 2011.China mainly imports soybean from the U.S., Brazil and Argentina, where the GMO soybeans areplanted the most extensively. The U.S., a country with the largest planting areas of soybean inthe world, has supplied about a quarter of its soybean output to China.Imported soybean now accounts for about 80% of Chinas total soybean consumption. Comparedwith more than 50 million tonnes of imported soybean every year, Chinas domestic output ofsoybean has been about 12 million tonnes per year in recent years.Driven by the increasing urbanization rate and hence the increasing demand from urbanresidents in China, Chinas soybean import volume is expected to maintain an uptrend in the next10 to 15 years. According to a forecast from the U.S. Department of Agriculture, Chinas import
  2. 2. volume of soybean is expected to go up by 62% to 90 million tonnes per year over the next 10years.Chinas soybean growing industry has been greatly affected by the increasing import volume ofsoybean. As imported soybean has advantages in cost (because of high farming efficiency inmajor soybean planting countries) and high oil yield (because of the adoption of GMO seed; butGMO soybean is prohibited to be planted in China), domestic soybean growing industry is beatenby imported product, and many Chinese farmers are unwilling to grow soybean.The decreasing output of domestic soybean and the increasing soybean import also impactChinas oil crushing industry. It was reported that more than 80% of the soybean oil crushers inHeilongjiang Province, Chinas largest soybean production base, have closed down due to thedecline in both planting area and output of soybean in the region in 2011, and many of thesoybean oil producers have been relocated to coastal areas and begun to use imported soybeanas their raw materials.The heavy reliance on imported soybean brings great risks to the food security of China and theprice stability of edible oil. Now many foreign companies have extended and integrated theindustrial chain of soybean in China, thus dominating the pricing rights of Chinas edible oilmarket; more than 75% market share of soybean oil market in China is controlled by overseasbrands. Most price rise of edible oil in the end market in recent years are initiated by overseascompanies. Edible oils price, which is included in Chinas CPI contributing factor, is highly relatedto society sustainability.As soybean is not included in grain in Chinese governments statistical system, the high relianceon soybean import may be ignored if focus is only put on Chinas grain sufficiency rate. Manyexperts suggest that grain security-related governmental departments in China should concernmore about the soybean import.Source: AgriChina Investor 1207http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.htmlContent of AgriChina Investor 1207:Chuying Agro-Pastorals rapid expansion faces challengesShenzhen Jinxinnong invests in capital preservation financing productArla Foods strengthens its presence in China
  3. 3. Muyuan Foodstuffs IPO approvedBig buyers increase in domestic crop protection marketU.S. drought not to push up Chinas grain priceChinas cotton import volume up 130.2% in H1 2012Brief introduction to Chinas direct subsidies for farmersHigh reliance on imported soybean affects Chinas edible oil securityInvestment in leisure agriculture to become hot in ChinaWhy companies in other industries set foot in agricultural business?Chinese farmers often experience poor sales of agricultural producesGuangdong Dahuanong to accelerate aquaculture vaccine commercializationMinsheng Banking opens financial centers for tea and fisheryImp.&exp. value of Chinas agricultural produces up 18.4% in Jan.-May 2012Flood may drag down Chinas autumn grain yield……AgriChina Investor, periodically published on 25th every month, offers timely update and closefollow up of agriculture investment in China, analyzing market data and trends, as well as relatedpolicies. Major columns include investment environment, investment dynamics, market watcher,market review etc.If you are interested in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staffof more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.CCM International Ltd.Guangzhou CCM Information Science & Technology Co., Ltd.17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou510070, China
  4. 4. Tel: 86-20-37616606Email: econtact@cnchemicals.comSource: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1156.html