China cuts soy use in animal feed in bid to boost food security

As part of its efforts to enhance food security, China has begun to use less soy in animal feed, a shift that could have repercussions on global prices.

China’s demand for soy in animal feed is expected to decline in 2023, which is in line with the nation’s goal of strengthening grain production security and reducing dependency on imports.

This week, the Ministry of Agriculture revealed its expectation that China’s feed industry would have reduced soy usage by 9.1 million tonnes this year. This reduction comes as the proportion of soybean meal in animal feed decreased by 1.5 percentage points.

China has been actively working to reduce its dependence on imports, particularly from the United States and Brazil, by promoting local production and cutting back on soybean meal usage.

Despite the decline in soy consumption in animal feed, soybean imports into the country remain high. China imports over 80% of the soybeans it consumes, and these imports have consistently stayed at elevated levels.

These supplies are utilized for animal feed and cater to the demand for cooking oil and replenishing reserves.

In the first 11 months up to November, soybean imports surged over 10% compared to the previous year, reaching approximately 90 million tons, the highest level in three years, according to China’s customs data.

Industrial feed producers reduced soybean meal consumption by 11% from January to November, despite a 4% increase in feed production, as reported by the Ministry of Agriculture.

Three years ago, Beijing launched a campaign to diminish the use of soybean meal in animal feed, advocating for low-protein feed formulations and exploring alternative protein resources. This initiative encompasses kitchen waste and encourages a more pasture-based diet for cows and sheep rather than relying on grains.

Source: Bloomberg Linea

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