With soymeal prices soaring on trade war worries, analysts say Chinese farmers and feed producers will be more motivated to cut soymeal use in animal feed.
China is therefore considering to limit the amount of protein used to feed pigs and poultry, as stated in draft proposals highlighting Beijing’s concern that hefty Chinese tariffs on US soybeans will tighten supplies. Beijing imposed 25% tariffs on $ 34 billion worth of US products including soybeans on 6 July, in response to US tariffs on Chinese goods of the same amount. This so-called Sino-US trade war is driving soybean prices up.
Turn to alternative protein sources
China’s Feed Industry Association wants to limit the amount of crude protein and total phosphorus in feeds for pigs, layers, and white feathered broilers at different growth stages, to “reduce consumption of raw materials for feed, and reduce environmental pollution from animal farming.” If protein level is lowered overall, this may reduce China’s soybean imports by 10 million tons.This would mean that Chinese farmers have to turn to alternative meals and reducing protein levels such as local vegetable protein resources, single cell protein, seaweed or insect meal.
The guidelines will need approval from the Chinese government before being implemented.
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