China to increase oilseed processing due to increased feed demand
China will process more oilseeds in 2024-2025 as the feed sector sees a moderate recovery in demand for protein meal, World Grain reported, citing a report by the USDA’s Foreign Agricultural Service (FAS).
The total volume of oilseeds for processing is estimated at 137.3 million tons in 2024-25, compared with an estimate of 135.3 million tons in 2023-24.
“In addition, a moderate recovery in vegetable oil demand and the increased use of soybeans for food purposes have also led to an increase in oilseed consumption,” the FAS report stated.
Soybean processing is estimated at 99 million tons in 2024-25, up from 97.5 million tons in 2023-24. Lower soybean meal prices and competitive export prices have driven processing for a long time.
The consumption of meal as feed in 2024-25 is estimated at 102.7 million tons, showing a moderate growth from 101.3 million tons in 2023-24. Soybean meal continues to dominate use as feed, accounting for over 74% of the total, followed by rapeseed meal by a wide margin with 13.1% in 2024-25.
“Total feed use in 2023 was 3% higher than the previous year, the upward trend in total feed use will continue in 2024 given the increase in livestock production,” FAS quoted the publication as saying.
Total vegetable oil use for food purposes is expected to increase to 35.6 million tons in 2024-2025 from 35.1 million tons in the previous year.
“Economic growth, which improves the living standards of consumers, is the main driver for the growth in total vegetable oil consumption,” FAS said.
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