China to become net exporter of soybean oil for second year in a row
China is set to remain a net exporter of soybean oil for a second year, driven by record shipments to India and South Korea. Falling domestic demand, demographic shifts and slower consumption growth have led to production exceeding demand, boosting exports despite declining imports of soybean oil.
According to a report from the U.S. Department of Agriculture’s Foreign Agricultural Information Service ( USDA FAS ), China is expected to maintain its status as a net exporter of soybean oil for the second year in a row, selling more product to foreign markets than it imports. This is driven by record export volumes to India.
Much of the record export volume was supplied as crude soybean oil due to Indian tariffs on refined oil. Significant volumes of refined soybean oil were also exported to South Korea.
However, the more noticeable change was the overall decline in soybean oil imports for the world’s largest consumer of vegetable oils, the report said.
As recently as 2012/13, China was the world’s largest importer of soybean oil, driven by rising incomes and the country’s rapid economic development, and has since become the world’s leading soybean oil producer thanks to significant investment in crushing capacity to meet growing demand for protein meal and vegetable oil.
Going forward, oil consumption in China is expected to grow at a slower pace, with the slight increase in consumption driven by a significant increase in refining volumes.
According to the service, factors contributing to the decline in demand include declining consumer demand and demographic trends such as an aging and declining population.
“This development results in domestic soybean oil production exceeding demand, which is fueling export growth,” the report said.
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Source : Ukr Agro Consult
