Soybean imports hit record highs repeatedly, why is domestic soybean mired in difficulty?

In recent months, China's soybean imports have repeatedly hit record highs. The high foreign dependence of soybeans has left domestic soybeans mired ever deeper in difficulty.

In the first 8 months of this year, China imported a cumulative 52.39 million tons of soybeans, once again setting a record for the same period in history, of which soybeans from Brazil accounted for nearly 90%. The main reason is that since the start of this year the Brazilian real has fallen 40% against the dollar, while the renminbi has been relatively firm, so imported Brazilian soybeans are naturally much cheaper. SDIC Zhonggu Futures analysis pointed out that at present, the distribution price of imported soybeans is generally around 3140-3160 yuan/ton, compared with about 4100 yuan/ton for new-season commercial soybeans listed in Hubei and other places in August. The cost of imported soybeans internationally as a whole is declining, and relatively speaking this industry offers a fairly good crushing profit, which is also the driving force pushing the entire domestic industry to import more soybeans.

Wang Xiaoyu, vice president of the Heilongjiang Soybean Association, pointed out that over the past 5 years, China's foreign dependence on soybeans has exceeded 80% every year. At present, the sown area and output of domestic soybeans are shrinking sharply, directly causing China's foreign dependence on soybeans for the oil-use market to increase year by year.

Minister of Agriculture Han Changfu: From the country of origin of soybeans, it has become the world's largest soybean importer. The rate of growth of soybean imports was something many people did not anticipate or fully estimate. Frankly speaking, in all my years in agriculture, I knew it would grow, but that it would grow so fast, I also did not expect. Industry analysis agencies estimate that next year China's soybean output will decrease by 10%. Song Shengbin, chairman of Heilongjiang Fu Grain and Oil Co., Ltd., told reporters that because domestic and foreign soybean prices are inverted, soybean processing enterprises in Heilongjiang are finding it harder and harder, with operations starting and stopping intermittently. Imported soybeans themselves hold an absolute advantage, from output to price. Enterprises have no way out either; if the state does not support them, they will naturally be eliminated.

Experts point out that most Chinese soybeans are “non-GMO” products, which is a prominent advantage as people increasingly value food safety and quality. Supporting the development of local soybeans remains a major issue concerning national grain and oil security.