China Customs strict control of U.S. soybean “whitewash” channel, imported soybean customs clearance ‘long queues’--2

China Customs strict control of U.S. soybean “whitewash” channel, imported soybean customs clearance ‘long queues’--2

Edited：www.immyhitech.com  www.immy.cn 

As a result, the customs clearance cycle for soybean cargo ships has been extended from the conventional 5 days to more than 

20 days. It is reported that Tianjin Port, Qingdao Port, Rizhao Port and other major grain transport hubs have appeared in the 

freighter port pressure phenomenon, some ships waiting for berthing inspection time of more than 30 days. As crushing 

enterprises were unable to obtain raw materials as originally planned, leading to the expansion of the supply gap in the 

domestic soybean meal market. Traders' data showed that soybean meal stocks in North China fell 23% in a week, 

pushing soybean meal spot quotes past the RMB 4,400/tonne mark. Analysts pointed out that the inspection process 

reconstruction superimposed on the logistics obstruction, is reconstructing the domestic protein meal market supply 

and demand balance, may further strengthen the upward trend of soybean meal prices. 

Soybean meal quotes break through 4200 yuan / tonne a number of feed enterprises announced a price increase of 50-100 

yuan / tonne according to Booya and Xun data monitoring shows that, as of April 23, the average spot price of domestic

 soybean meal climbed to 3,868 yuan / tonne, compared to the price of April 2 lows, has achieved a significant rise of 785 yuan

 / tonne, there have been some areas of the soybean meal quotes break through the key barrier of 4,200 yuan / tonne. 

At the same time, feed industry information network statistics show that a number of factories due to delayed unloading

 of imported soybeans, start-up time again postponed to early to mid-May. In such a market environment, not only soybean

 meal prices soared, even corn prices also showed strong running trend. In addition, Henan region recently suffered a

drought on wheat growth threat, which also further strengthened the market for feed alternatives prices are expected 

to rise. The combination of these multiple factors, feed prices have officially opened a new round of rising tide. 

According to the authoritative data from the National Bureau of Statistics and the General Administration of Customs of

 China, during the ten years from 2013 to 2022, China's corn production achieved a steady growth from 248,453,000 

tonnes to 277,203,000 tonnes, with a compound annual growth rate of 1.22%; at the same time, the demand for corn 

also grew from 251,640,000 tonnes to 297,820,000 tonnes, with a compound annual growth rate of 1.89%. During this

 period, domestically produced corn has always dominated China's corn consumption, and its production growth 

rate exceeded the demand growth rate, highlighting the key role of domestically produced corn in securing domestic

 supply. At the enterprise level, the reduction and substitution of soybeans and corn has become a general consensus

 in the industry. 

Wei Xin of CITIC Capital's Agricultural Research Institute mentioned in an interview with Interface 

News that in practical application, domestic breeding enterprises have conducted in-depth research on low-protein formulas, 

and combined with the overall improvement of breeding efficiency, have gradually reduced their dependence on U.S. soybeans.

 In terms of breeding efficiency, head enterprises have successfully controlled the complete cost per kilogram below RMB 

15 through automation and refined management tools, an advancement that helps optimise feed consumption and further

 promotes the implementation of reduction and substitution.2023 In 2023, the Ministry of Agriculture and Rural Affairs issued the 

Three-Year Action Plan for Reducing and Substituting Soybean Meal for Feeding, in which the goal is clearly stated: by 2025, 

the proportion of soybean meal in feed will be increased from 14.5 per cent in 2022 to less than 13 per cent. 

According to the latest data from the National Bureau of Statistics (NBS), from January to October 2024, the national soybean 

meal usage has dropped by 8% year-on-year, indicating that the target for this stage has basically been reached. In enterprise practice,

 head breeding enterprises such as New Hope and Makin have even reduced the proportion of soybean meal used to less 

than 10%, setting a benchmark for the industry. 

Wang Zuli, chief expert of pig industry monitoring and early warning of the Ministry of Agriculture and Rural Affairs, pointed outthat there is still room for further compression of the proportion of soybean meal used in the farming industry. 

With the improvement of farming efficiency, it is possible to save roughly one per cent of soybean meal usage per year, 

and at present, this saving has not shown any obvious diminishing marginal benefits in the short term.’ 

Wang Zuli analysed. At the same time, insect protein, single-cell protein, ethanol clostridium 

protein and other new protein sources are accelerating the industrialisation. Under the dual impetus of policy support and 

technological progress, these alternatives will effectively increase the supply of protein, further shaking the dominant

 position of traditional soybean meal. 

At present, the U.S.-China trade relations are still in the friction, game and adjustment 

stage, which brings new challenges to China's agricultural sector, but also brings new opportunities. 

The change in China's agricultural sector regarding soybean and corn imports is not only a response to the trade friction 

between China and the United States, but also a comprehensive optimisation covering scientific and technological 

innovation, supply chain layout, agricultural policy coordination and risk management system construction.

 China's goal is not just to achieve ‘de-USisation’, but through this change to build a ‘China-led, multi-complementary’

 new pattern of food security, and gradually move towards real agricultural autonomy and strategic security. 

(Based on: Globe, Feed Industry Information Network, Booya Hutchison, General Administration of Customs, National Bureau of Statistics)