China wants to process more local soybeans

China may ask its soybean processors to prioritize local beans as the world’s biggest buyer seeks to reduce its dependence on imports.

Beijing is discussing plans to process a certain amount of local beans this year.

China buys more than 60% of the world’s soybeans, and any reduction in imports is likely to affect major producers Brazil and the US, which have expanded to meet growing appetite from Asia’s largest economy. However, the plan is not yet finalized and could still change, said the people, who asked not to be named because they are not authorized to speak to the media.

The country is seeking to expand local soybean production to boost self-sufficiency, but cheaper imports often make it difficult for domestic producers to compete. China processes the beans into vegetable oil and animal feed, especially for its large hog industry.

China’s soybean production in 2023-24 was 27% higher than two years ago at 20.84 million tons, according to official data. The country buys more than 80% of the beans it consumes from abroad, importing 105 million tons this season.

China’s soybean production in 2023-24 was 27% higher than two years ago at 20.84 million tons, according to official data. The country buys more than 80% of the beans it consumes from abroad, importing 105 million tons this season.

Authorities have previously tried to stimulate the local market by boosting stocks in government reserves – a measure they often use for agricultural commodities – but that has had little effect on local prices. Dalian-traded soybean futures fell to their lowest level in more than three years last month.

Tags: China, soybean