China Anticipates Significant Decrease in Demand for Soybeans Used in Animal Feed

In a surprising shift, China’s Ministry of Agriculture projects a significant decrease in the country’s demand for soybeans used in animal feed. The anticipated reduction, amounting to roughly 9.1 million tons in 2023, is part of a strategic move to promote food security. As part of this strategy, China is taking proactive measures to decrease and substitute the use of soybean meal in animal feed.

China’s decision to cut down on soybean meal usage is part of a broader agricultural strategy. This includes the expansion of pilot planting for genetically modified (GM) corn and soybeans. These efforts are aimed at speeding up the commercialization of GM crops. The potential increase in self-sufficiency in feed production could significantly reduce China’s dependence on imported soybeans.

China has asserted that its purchases of soybeans and other agricultural commodities are dictated by domestic needs and not foreign market demands, such as those from the United States. This realignment underscores the country’s larger goal of enhancing food security and becoming more self-reliant in its agricultural sector.

In a related development, the Federation of Livestock & Aquaculture in Thailand is urging its government to allow the import of 210,000 tonnes of soybean meal by early next year. The move is aimed at preventing significant losses for the marine livestock raising and animal feed manufacturing industries. Local soybean meal manufacturers can currently produce only about 20,000 tonnes annually, while the industry requires approximately five million tons. Four cargo ships loaded with soybean meal are scheduled to arrive in the Gulf of Thailand, with the first one due for January 3.

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