The importation of soybeans into China remains largely unaffected even as the coronavirus pandemic continues to spread globally. The country's Ministry of Agricultural and Rural Affairs mentioned during a briefing on Saturday that importation of the crop continues to grow and is expected to accelerate in the coming months.
Ministry head, Pan Wenbo, stated that global soybean production and the demand gap in China is still substantial. Even with the pandemic continually spreading, supply is still sufficient and China will continue to increase its importation of the agricultural product.
China is one of the largest soybean importers, with the crop being used mainly for oil and as a soybean meal feed in farms across the nation. Last year, China imported a total of 88.51 million metric tons of soybean, accounting for about 85 percent of the country's total domestic consumption. Around 65 percent of the imports were from Brazil, 19 percent from the United States, and 10 percent from Argentina.
For the first quarter of this year, China imported a total of 13.51 million tons, a 14.2 percent increase when compared to the same period last year. The head of the ministry's department of development and planning, Wei Baigang, stated that based on the numbers, China's importation of soybeans seems to be unaffected by the coronavirus outbreak.
The importation of the crop from Brazil had reportedly significantly increased in March, coinciding with the country's annual harvest season. Wei expects that the importation of soybeans from Brazil could reach around 121 million tons this year, contributing to the overall increase in China's soybean imports. The ministry stated that it is working with the Brazilian government and the country's farmers to ensure continued production and importation of the crop.
The United States is currently the heaviest hit by coronavirus outbreak but its soybean exports are still expected to increase. Soybean farming in the US is expected to enter into its sowing period in late April, boosting supply. With the completion of the first stage of the economic and trade agreement between both nations, China is expecting a growth in US soybean imports.
While China is now seemingly out of the water, Brazil, Argentina, and the US are still only starting to deal with the pandemic. The ministry stated that it will be paying close attention to the impact of the pandemic on soybean imports and providing any assistance where needed. At the same time, the ministry also plans to promote domestic soybean production to improve domestic supply just in case.
