China has not reduced its dependence on soybean meal in animal feed, missing its targets and complicating future efforts due to a new deal with the US.
China's agricultural sector struggled to meet its soybean meal dependence targets, as the proportion of soybean meal in domestically produced animal feed remained unchanged at 13.4% last year, according to data from the China Feed Industry Association. This figure highlights that the ambitious plan to reduce this reliance from 14.5% in 2022 to below 13% by 2025, and eventually to 10% by 2030, is currently not on track. The government's ongoing efforts to substitute soybean meal with alternative protein sources such as biosynthetic amino acids have not yet yielded significant results, leaving China's soybean demand largely unaffected.
Experts indicate that soybeans present a critical vulnerability for China’s agricultural industry, and the stagnant dependence on soybean meal adds pressure to the agricultural policy framework. This dependency is concerning especially in light of recent dealings with the US, which could complicate China's agricultural import dynamics and food security strategies. The challenges lie not only in sourcing alternatives but also in the inherent complexities tied to China's existing infrastructure and feeding practices.
As authorities reevaluate their approaches towards reducing soybean meal consumption, the implications for both domestic feed prices and the overall agricultural market loom large. With the target dates approaching, which emphasize decreasing reliance on imported commodities, the ability to adapt and innovate within the feed industry will be a crucial milestone for achieving long-term agricultural resilience in China.
