China reduces soy use thanks to fermented feeds

Chinese livestock farmers are turning to fermented feed to cut costs. According to Reuters, ponds filled with a variety of cheaper local ingredients, including bran, pumpkin seed flour and wine lees, can now be seen next to pig farms in China. These products are fermented, making the proteins more easily digestible and reducing the need for high-quality soy protein, 80% of which China imports.

Farmers complain that high soybean prices, rising supply and falling demand have made pig farming unprofitable, and everyone is looking for ways to cut costs.

China is the world’s largest buyer of soybeans, importing more than 110 million tonnes of the beans worth $52.7 billion in 2024, a quarter of which came from the US.

At the same time, livestock and feed market players, as well as academics and industry experts, say China is moving faster than previously thought in implementing new technologies and promoting fermented feeds.

According to expert forecasts, fermented feeds now account for 8% of industrial feeds in China, compared to 3% in 2022 and are likely to reach 15% by 2030. Large pig, poultry and dairy farms are actively switching to fermented feeds. In poultry farming, the share of such feeding is already estimated at 25%. However, the transition to such feeds requires significant efforts and investments associated with the capital modernization of feeding systems.

Experts have estimated that the value of the Chinese fermented feed market increased to $6 billion last year, quickly catching up with the leading European market, which is worth $7 billion. The US market is estimated at only $2.5 billion, as soybeans and corn are more affordable.

The use of fermented feeds is not yet sufficiently standardized. Some producers claim that pigs fed this type of feed develop more slowly. At the same time, there is a possibility that such feeds affect the taste of the meat.

Louis Dreyfus is already eyeing this market and plans to build its first fermented feed production line in the northern port city of Tianjin.

Tags: China, soybean