China may cut soybean demand by 30mt says Xinhua

China may reduce its demand for soybeans by 30 million tons by continuing to promote the use of alternative animal feeds made with less soy bran than the ones regularly used, according to the official Xinhua news agency on Wednesday, February 16.

China issued guidelines last year recommending the reduction of soybean meal and corn in the diet of pigs and poultry, seeking to reduce their dependence on imported grains.

The country imports nearly 100 million tonnes of soybeans a year to produce protein-rich soybean meal for its massive livestock sector.

Soybean meal’s share of feed dropped to an average of 15.3% last year, down 2.4 percentage points from 2020, Xinhua said.

Among the 33 largest feed companies, soybean bran averaged 11.8%, down 1.6 percentage points from a year earlier.

Suppose China continues to promote low-protein livestock feed. In that case, it could reduce soybean meal use by another 23 million tonnes, lowering its soybean needs by nearly 30 million tonnes, according to the report.

Feed manufacturers could replace soybean meal with amino acids and alternative grains, while higher forage consumption could replace soybean meal in cattle and sheep feed, according to the report.

China said boosting soybean production will be a “major political task” this year after oilseed production fell in 2021 as farmers planted more corn.

Source: Money Times

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