iGrain India – China’s efforts to boost domestic soybean production and reduce imports have faced challenges, despite significant investments and policy measures.
The country is the world’s leading importer of soybeans, aiming to increase its self-sufficiency in this key crop. However, recent figures show limited progress in achieving this goal.
Under its five-year plan, China’s Agriculture Ministry aimed to raise domestic soybean production to 23 million tonnes by 2025, a move designed to increase self-sufficiency by 6-7 percentage points.
Yet, the 2024 soybean production forecast is only 20.45 million tonnes, falling short of the target by 4.55 million tonnes and even behind 2023 levels.
This would result in a mere 17.8% self-sufficiency rate, a slight improvement over the 16.6% five-year average but still far from the goal.
China’s Ministry of Agriculture has used substantial resources to encourage soybean production, including subsidies, high-yield seed varieties, co-cultivation of soybeans with maize, and financial support for farmers.
Despite these efforts, production has remained relatively stable, with farmers struggling due to the low profitability of soybeans.
The price of soybeans in October 2024 dropped 22% compared to the previous year and 35% from 2022, further discouraging domestic production.
Moreover, China’s large-scale imports are expected to continue. During the 2024-25 season, the country is projected to import a significant 94.6 million tonnes of soybeans, ensuring adequate supply but undermining local production incentives.
Consequently, despite substantial government support, China’s soybean production remains limited, underscoring the difficulties in achieving self-sufficiency.
Source: investing
