Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

China Strives for Soybean Self-Sufficiency Amid Global Tensions

Published 19/10/2023, 07:20
Updated 19/10/2023, 07:20
© Reuters.

China's drive towards self-sufficiency in soybeans, a crucial commodity for human and animal protein consumption, is altering global agricultural trading flows. The push for independence in food security is a response to geopolitical tensions, escalating global food prices due to the COVID-19 pandemic and Russia's invasion of Ukraine, and historical events such as Mao Zedong’s Great Leap Forward and US food blockades during WWII.

The nation has achieved high self-sufficiency rates for staples like rice and wheat through protective tariffs, farmer subsidies, and large government-run grain warehouses. However, soybeans present a unique challenge due to unfavorable growing conditions and resistance to genetically modified (GM) crops. Approximately 75% of China's soybean imports are sourced from the US and Brazil.

In response to the 2018 US-China trade war, China sought to diversify its soybean sources and increase local production. Despite these efforts, local supplies can't offset the shortfall from US imports due to market demand and limited arable land, according to Darin Friedrichs of Sitonia Consulting.

President Xi Jinping's domestic policies promoting self-sufficiency underline China's need for independent food security. While these policies are altering global agricultural trading flows, experts contend that market forces remain dominant. The Chinese government's ability to enforce self-sufficiency targets is constrained by financial limitations and a fragmented agricultural sector. The small scale of Chinese farms also impedes the adoption of high-tech farming practices, such as GPS monitoring devices, commonly used in the US and Brazil.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.