High Reliance on Imported Soybean Affects China's Edible Oil Security

According to statistics from China Customs, in the first half of 2012, China imported 29.05 million tonnes of soybean, up 29.05% over H1 2011. Since the planting area of soybean in China has decreased this year, it's estimated that China's import of soybean will set a new record in 2012, and the high growth of import volume in H1 2012 is a signal, according to CCM’s July issue of AgriChina Investor.

Soybean is a major source of edible oil in China. With the increasing demand for edible oil from urban residents and the declining planting area of soybean, China's import of soybean has been increasing year by year over the past decade.

 

Since 2003, China has surpassed the European Union and become the largest soybean importer in the world. In 2010, China's soybean import volume hit a historic high of 54.80 million tonnes. In 2011, it decreased slightly by 3.9% to 52.64 million tonnes. The import volume of soybean in China climbed by 90% from 2004 to 2010.

 

According to the data from China's National Grain and Oils Information Center, the annual consumption volume of edible oil in China reached 20.5kg per person in 2011. 

 

China mainly imports soybean from the U.S., Brazil and Argentina, where the GMO soybeans are planted the most extensively. The U.S., a country with the largest planting areas of soybean in the world, has supplied about a quarter of its soybean output to China.

 

Imported soybean now accounts for about 80% of China's total soybean consumption. Compared with more than 50 million tonnes of imported soybean every year, China's domestic output of soybean has been about 12 million tonnes per year in recent years.

 

Driven by the increasing urbanization rate and hence the increasing demand from urban residents in China, China's soybean import volume is expected to maintain an uptrend in the next 10 to 15 years. According to a forecast from the U.S. Department of Agriculture, China's import volume of soybean is expected to go up by 62% to 90 million tonnes per year over the next 10 years. 

 

China's soybean growing industry has been greatly affected by the increasing import volume of soybean. As imported soybean has advantages in cost (because of high farming efficiency in major soybean planting countries) and high oil yield (because of the adoption of GMO seed; but GMO soybean is prohibited to be planted in China), domestic soybean growing industry is beaten by imported product, and many Chinese farmers are unwilling to grow soybean.

 

The decreasing output of domestic soybean and the increasing soybean import also impact China's oil crushing industry. It was reported that more than 80% of the soybean oil crushers in Heilongjiang Province, China's largest soybean production base, have closed down due to the decline in both planting area and output of soybean in the region in 2011, and many of the soybean oil producers have been relocated to coastal areas and begun to use imported soybean as their raw materials. 

 

The heavy reliance on imported soybean brings great risks to the food security of China and the price stability of edible oil. Now many foreign companies have extended and integrated the industrial chain of soybean in China, thus dominating the pricing rights of China's edible oil market; more than 75% market share of soybean oil market in China is controlled by overseas brands. Most price rise of edible oil in the end market in recent years are initiated by overseas companies. Edible oil's price, which is included in China's CPI contributing factor, is highly related to society sustainability.

 

As soybean is not included in grain in Chinese government's statistical system, the high reliance on soybean import may be ignored if focus is only put on China's grain sufficiency rate. Many experts suggest that grain security-related governmental departments in China should concern more about the soybean import.

Source: AgriChina Investor 1207

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1207:

Chuying Agro-Pastoral's rapid expansion faces challenges

Shenzhen Jinxinnong invests in capital preservation financing product

Arla Foods strengthens its presence in China

Muyuan Foodstuff's IPO approved

Big buyers increase in domestic crop protection market

U.S. drought not to push up China's grain price

China's cotton import volume up 130.2% in H1 2012

Brief introduction to China's direct subsidies for farmers

High reliance on imported soybean affects China's edible oil security

Investment in leisure agriculture to become hot in China

Why companies in other industries set foot in agricultural business?

Chinese farmers often experience poor sales of agricultural produces

Guangdong Dahuanong to accelerate aquaculture vaccine commercialization

Minsheng Banking opens financial centers for tea and fishery

Imp.&exp. value of China's agricultural produces up 18.4% in Jan.-May 2012

Flood may drag down China's autumn grain yield

……

AgriChina Investor, periodically published on 25^th every month, offers timely update and close follow up of agriculture investment in China, analyzing market data and trends, as well as related policies. Major columns include investment environment, investment dynamics, market watcher, market review etc.

If you are interested in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1156.html

Purchasing Soybean in Northeast China Becomes Difficult

The November issue of China Agriculture Investment Bimonthly Report by CCM International has come out recently. The top news is about soybean purchase problem. It is hard for the soybean processing enterprises to purchase soybean in Northeast China due to the decreasing local planting area.

The planting area of soybean has been reduced year by year, down to 3,667,000 ha. in 2009 from 4,246,000 ha. in 2005. The situation is the same in Northeast China, especially in Heilongjiang Province, which is a key soybean production area in China. The soybean planting area in Heilongjiang Province has been continuously decreasing these years, thus the soybean supply in Northeast China has begun to slip.

As a result, the processing enterprises of soybean are facing many difficulties in purchasing their raw material - soybean and are with the risk of losing market share. Since soybean planting in China doesn’t have much advantage, most farmers choose to plant other crops with higher benefits. If this trend keeps going on, the gap between supply and demand of soybean in Northeast will become more and more apparent in the future.

To solve this crisis, the government should take corresponding measures, such as policies on soybean purchase and temporary store, the stabilization of the price, offering tax preference to soybean enterprises, etc.

More details about soybean purchasing news, please check CCM International’s China Agriculture Investment Bimonthly Report.

Headline News of China Agriculture Investment Bimonthly Report 1111:

-China will become the largest import country of agricultural produces in five to ten years, owing to the development of economy and the unceasing improvement of people's living level in China.

-The pilot of agricultural produces has attracted a large sum of social investment and promoted the income growth of farmers.

-The processing enterprises of soybean in Northeast China have been faced with crisis in soybean purchase owing to the reducing local planting area of soybean.

-China's nitrogen fertilizer industry is to see production structure changes, due to the intense overcapacity and the ever-changing raw material supply.

-Agricultural material logistics is to enjoy a faster development, aided by the policy support and the fast expanding production capacity.

-Legend Holdings views agriculture as a new growth point.

-ZARD continues to expand its seed industry after its stock trade in Shanghai Stock Exchange resumed on Oct. 19, 2011.

-Chinese pesticide industry meets white-hot capital operation, and pesticide enterprises are hurrying to seek ways of survival and development.

-Sinochem Corporation is planning to launch its domestic initial public offering (IPO) recently.

-Tingyi-Asahi Beverage will establish strategic alliance with PepsiCo in the beverage business in China.

-The New Administrative Regulations on Feed and Feed Additive will be implemented on May 1, 2012 in China.

-The development of China's liquor industry will enter into a golden age in the next one or two years.

-China's dairy enterprises are now positively raising funds in this key period for their future development.

……

If you are interested in November issue of China Agriculture Investment Bimonthly Report, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_875.html

Development of China’s Hybridization Breeding Soybean Keeps Growing

CCM International has published the latest Issue of Seed China News on November 30^th , 2011, indicating that the development of soybean hybridization breeding is expected to improve the competitiveness of China's non-transgenic soybeans.

China is capably to produce hybridization breeding soybean. For example, Anhui Province is a major soybean-planting province in China, with an annual planting area of over 666,666.67 ha. (10 million mu). The province's soybean hybridization breeding, especially for high-protein soybeans, has led the country. By three-line breeding methods, some summer soybeans with higher yield, such as "Zayoudou 1", have been successfully cultivated and released in the province and surrounding areas.

It's believed that the new cross-breeding and cultivation technology would be essential to revitalize China's soybean industry. The improvement in soybean seed breeding would reduce farmers' purchase cost of hybrid soybean seeds. The planting efficiency of soybean would be greatly improved, with upgrading of yield and quality.

Many industrial insiders also advocate to enhance domestic protein processing business, in order to expand the consumption of non-transgenic soybeans. Actually, non-transgenic soybeans are thought to be the material most appropriate for protein processing. It appears that the demand for non-transgenic soybeans continues to increase globally, with the development of protein processing industry.

It’s noteworthy that some domestic oil companies still insist on extract oil mainly with non-tansgenic soybeans. "Only by building our non-GM brand can we compete with international cereals and oils giants," said Vice President of a cereals and oils industrial group in Heilongjiang Province, Northeast China.

All findings are from CCM International’s Seed China News 1111. The headline news include:

-The Government of Anhui Province released suggestions for developing modern seed industry, indicating the strategy to support leading seed companies.

-The two-line wheat breeding technology is expected to realize industrialization in China.

-China continues to attach importance to crop breeding through space mutation, aiming to develop more abundant variety resources.

-IRRI, CAAS and BGI jointly launched Rice 3,000 Genomes Project in Shenzhen City, South China.

-Winall Hi-tech buys "Wushan Simiao" to enrich the rice variety structure and make more profits in rice seeds.

-Hunan Jinjian is transferred by HJCI owing to HJCI’s lack of ability and willingness to strengthen the seed business.

-Shandong Denghai establishes a joint venture to expand business scope.

-Golden Rice sets up a special research department, aiming to build a commercial rice-breeding system.

-The developing hybridization breeding of soybean is expected to improve the competitiveness of China's non-transgenic soybeans.

-Multinational giants are marking great efforts to enhance seed treatment business in China.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_864.html

Northeast Production Area of Soybean Facing Crisis in Raw Material Purchase

The processing enterprises of soybean in Northeast China have been faced with crisis in soybean purchase owing to the reducing local planting area of soybean, according to CCM’s November issue of China Agriculture Investment Bimonthly Report.

According to the Soybean Association of Heilongjiang, at present, the processing enterprises of soybean have faced many difficulties in purchasing their raw material - soybean. The processing enterprises of soybean can not get soybean with low price while dare not to purchase with high price. Recently, in Heilongjiang Province, only a few processing enterprises of grease are purchasing soybean as raw material and more than 80% of the processing enterprises of grease have suspended their productions. The planting area of soybean has been continuously reducing in Heilongjiang Province, thus the soybean supply in Northeast China has begun to slip.

The processing enterprises of soybean have faced with difficulties in raw material purchasing and are with the risk of losing market share. At present, domestic soybean planting doesn't have any advantages, thus most of the farmers choose to plant other crops with higher benefits. If this trend keeps going on, the gap between supply and demand of soybean in Northeast will appear in the future. Recently, domestic supply of soybean has been in short, owing to the sharply decreased planting area and output of soybean. The planting area of soybean has been reduced year by year, decreasing to 3,667,000 ha. in 2009 from 4,246,000 ha. in 2005.

At the same time, many processing enterprises of soybean have suspended productions because of the difficulties of purchasing raw material and the poor performance. Take the largest enterprise of soybean oil in Hailun City, Heilongjiang for example, its production has been dependent on the national financial subsidies for many years, and this year the enterprise even suspends production. At present, the operation rates of soybean oil enterprises are low, and only half of the enterprises are producing.

The short supply of soybean has also brought influence to its consumer markets such as the soybean oil market and the soybean meal market. In the past, the northeast region marketed all its own soybean; but now, soybean oil and soybean meal produced in Huaihai Region are sold to the northeast region, which weakens the advantages that the northeast region once had in soybean production.

To solve this crisis, the government should take corresponding measures, such as policies on soybean purchase and temporary store; the stabilization of the price; offering tax preference to soybean enterprises, etc.

Source: China Agriculture Investment Bimonthly Report

Content of China Agriculture Investment Bimonthly Report:

China to become top import country of agricultural produces

Pilot of modern agricultural produces circulation achieves fruitful success in China

Northeast production area of soybean facing crisis in raw material purchase

Price update of agricultural produces

Nitrogen fertilizer industry to change production structure

Agricultural material logistics to see faster development in China

Legend Holdings views agriculture as new growth point

Price update of main fertilizers

ZARD to purchase Guangxi Green Agricultural 51% share

Chinese pesticide industry meets white-hot capital operation

Sinochem Corporation to launch IPO

Price review of key pesticides and materials in Nov. 2011

Tingyi-Asahi Beverage to establish strategic alliance with PepsiCo

New Administrative Regulations on Feed and Feed Additive to implement in China

Liquor industry to enter into a golden age in China

China's dairy enterprises actively raising funds in key development period

Price update of food and feed

……

China Agriculture Investment Bimonthly Report, which is a bi-monthly newsletter published by CCM International Limited, offers timely update and close follow up of Chinese agricultural industry, analyzing market data and trends, as well as related policies. Major columns include policy and legislation, industry dynamic, company dynamic and price update.

If you are interested in November issue of China Agriculture Investment Bimonthly Report, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_857.html

China Soybean Breeding on the Rise

Opposite to the decreasing soybean production, the hybridization breeding of soybean is rising in China. The cross breeding system of soybean has been established in some areas. It is estimated that the breakthrough in soybean yield and quality would greatly improve the competitiveness of domestic non-transgenic soybeans, according to CCM’s November Issue of Seed China News.

Anhui Province is a major soybean-planting province in China, with an annual planting area of over 666,666.67 ha. (10 million mu). The province's soybean hybridization breeding, especially for high-protein soybeans, has led the country, mainly relying on the cooperation efforts of research institutes. By three-line breeding methods, some summer soybeans with higher yield, such as "Zayoudou 1", have been successfully cultivated and released in the province and surrounding areas.

It was reported in early Nov. 2011 that a highly efficient soybean breeding system was established in Jilin Province, a key soybean planting region located in Northeast China. After a male sterile line with high outcrossing rate was cultivated, the hybrid seed yield of soybean has been significantly increased. The seed breeding system combining the environment, insects and crop has been further improved. Then the industrialization of soybean seed breeding would be accelerated substantially.

Compared with other main crops like rice, corn and rapeseed, soybean is a most difficult crop to realize distant crossing. It has taken Chinese scientists many years to cultivate soybean male-sterile line and breeding hybrid varieties. The world's first hybrid soybean was born in China in Jan. 2003.

Although China owns the advantages in planting non-transgenic soybean in large areas, the soybean industry has not shown powerful competitiveness compared with the GM soybean industry. Owing to the high cost and low efficiency in growing soybeans, domestic farmers intends to plant other high efficiency or yield crops, such as hybrid rice and corn. Besides, the shrinking demand for non-transgenic soybean in processing industry also affected domestic soybean planting.

It's believed that the new cross-breeding and cultivation technology should be essential to revitalize China's soybean industry. The improvement in soybean seed breeding should cut farmers' purchase cost of hybrid soybean seeds. The planting efficiency of soybean would be greatly improved, with the upgrading of yield and quality.

As for developing excellent hybrid soybean, the cooperation between seed companies and research institutes should be encouraged. Companies should play a key role in promoting the commercialization of soybean breeding. According to Gai Junyi, a famous soybean expert, Shandong Shengfeng Seeds and Technology Co., Ltd. has collaborated with Nanjing Agricultural University to establish a modern soybean-breeding system.

Many industrial insiders also advocate to enhance domestic protein processing business, in order to expand the consumption of non-transgenic soybeans. Actually, non-transgenic soybeans are thought to be the material most appropriate for protein processing. It appears that the demand for non-transgenic soybeans continues to increase globally, with the development of protein processing industry.

It is noteworthy that some domestic oil companies still insist on extract oil mainly with non-tansgenic soybeans. "Only by building our non-GM brand can we compete with international cereals and oils giants," said Vice President of a cereals and oils industrial group in Heilongjiang Province, Northeast China.

Source: Seed China News 1111

http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html

Content of Seed China News 1111:

Anhui government to support leading seed enterprises

Two-line hybrid wheat to realize industrialization in China

China attaches importance to crop space breeding

Rice 3,000 Genomes Project launched in Shenzhen

Winall Hi-tech introduces conventional rice variety

Hunan Jinjian transferred to Shenzhen Jinsheng

Shandong Denghai sets a joint venture

Golden Rice sets up research institute

China soybean breeding on the rise

Bayer's new seed treatment application center launched in China

Seed China News, a monthly publication issued by CCM International on 30th of every month, offers timely update and close follow-up of China’s seed industry dynamics, analyzes market data and finds out factors influencing market development

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_858.html