Detail

China (Mainland)

Oilseeds, oils and meals

Oilcrops

01/02/2019

Production

Agricultural policy

Released a policy statement containing commitments to deepen agricultural supply-side structural reforms, including the promotion of soybeans and other oilcrops aimed at helping to reduce the country’s dependence on imports.

In February, China’s State Council released a policy statement including commitments to deepen agricultural supply-side structural reforms. The document envisages the launch of a new farm subsidy policy system, together with continued efforts to reduce state reserves of maize and rice. At the same time, cultivation of soybeans and other oilcrops would be encouraged, also to help reduce dependence on imports (see also MPPU Dec.’18 & Jan.’19). Domestic oilseed production would be raised via the introduction of high oil- and protein-yielding varieties as well as by improving the scale of cultivation. In line with the Council’s statement, ministry officials announced plans to expand, with the help of subsidies, domestic planting of soybeans and other oilcrops by around 330 000 hectares in 2019. Soybean and groundnut crops will be promoted primarily in northern China, while rapeseed cultivation will be encouraged in the Yangtze River Basin. By 2022, domestic soybean cultivation is expected to occupy 10 million hectares, which compares to 8.4 million hectares planted in 2018. On a separate note, private media reported that purchases of maize and soybeans for public reserves have been authorized in Heilongjiang Province. Reportedly, in the case of soybeans, 200 000 tonnes may be procured during the months of March and April in three provincial zones at purchase prices ranging between CNY 3420 and 3460 per tonne (USD 510 and 516).