Chinese Soybean Demand Increased by 142% in 16 Harvests

According to the United States Department of Agriculture (USDA), China imported 50 million tons of soybeans in the 2007/08 season. However, in the 2023/24 season, the forecast is for the purchase of 121 million tons. This indicates a 142% increase in soybean consumption by the Asian country over the last 16 harvests.

The rise is directly related to population growth, increased purchasing power, and changes in consumption patterns, both human and animal.

Despite the increase, the growth rate has fallen to 2.65% over the last five years, indicating that growth is approaching a plateau. In 2023, the average soybean stocks (January to April) in China reached 7.6 million tons, according to Bloomberg. This figure is a record if the 2021 reserves - due to Covid-19-induced food security needs - are disregarded. However, this year, for the same period, stocks hit 8.1 million tons. Despite the growth in numbers, the volume only covers 23 days of domestic consumption demand.

"This means that the increase from now on may not be as disruptive as before. It is important to note that demand will continue to exist due to necessity; however, with a lower growth rate," remarked industry experts.