China is preparing to import soybean meal from Brazil as part of broader efforts to diversify sources of the animal feed ingredient, ease a near-term supply shortage and curb inflation risks. Even though the initial volumes may be small, the move represents another step in Beijing’s efforts to find new sources of agricultural supplies to bolster its food security. The decision, coming soon after China opened its market to Brazil corn imports, is another boost to trade between the world’s biggest agricultural exporter and the biggest buyer of soybeans. Brazil is the world’s second-biggest soymeal exporter, behind Argentina, shipping 20.25 million tons in the 2021-22 marketing year. China only imported 60,000 tons from the global market over that period. China doesn’t usually import soymeal, instead buying massive quantities of beans from Brazil and the US to crush into meal for livestock feed and cooking oil for its food services sector.
Sources: Bloomberg/Datamar News