Detail

China (Mainland)

Oilseeds, oils and meals

Selected oilseeds, meals

01/09/2019

Trade

Bilateral, sector-specific trade initiatives

In parallel to its trade talks with the United States, the Chinese Government further pursued efforts to diversify the country’s import options for oilseeds and derived products through bilateral agreements with Argentina, Russian Federation, Thailand and Brazil.

In parallel to its trade talks with the United States, the Chinese Government further pursued efforts to diversify the country’s import options for oilseeds and derived products through bilateral agreements with third countries (see also MPPU Sep.’19). In particular, in September, China formally approved the importation of soymeal from Argentina, the world’s leading supplier of the commodity (NB: Argentinian soymeal was previously denied access to China). Reportedly, before first shipments can take place, concerned Argentinian plants need to obtain final authorization and registration by China’s customs authorities. Argentine government officials expect soymeal sales to China of up to 5 million tonnes in 2020, which compares to lower industry estimates of 2.3 million tonnes. In the month of September, China also authorized purchases of soy, rape and sunflower meal from the Russian Federation (see also MPPU July&Sep.’19). Moreover, China signed a MoU with Thailand that is expected to foster China’s imports of Thai palm kernel expeller. Subsequently, in October, China signed a sanitary protocol with Brazil to facilitate sales of Brazilian cottonseed meal to China. The two countries also agreed to explore the possibility of trading soybean meal. In addition, Brazil’s agricultural research body EMBRAPA and the Chinese Academy of Science signed a MoU aimed at promoting scientific collaboration between the two institutions, including work on the genetic enhancement of soybeans.