[China's soybean production is unstable, market prices are unstable, making supply unstable, it is difficult to make overseas markets feel dependent]
China's international trade in soybeans began in 1995, and it changed from a net exporter to a net importer, and imports increased year by year. China's soybean imports usually account for nearly two-thirds of global soybean trade. According to data from the General Administration of Customs, total soybean imports in 2014 were 71.4 million tons, an increase of 12.7% year-on-year. As of October this year, China has imported 65.18 million tons of soybeans, an increase of 14.7% year-on-year.
As the United States, Brazil, and Argentina supply soybeans to China, the vast majority of soybeans grown are GM varieties, which means that the number of GM soybeans imported from China has been increasing.
The imported varieties of genetically modified soybeans have passed rigorous examination and approval by the Ministry of Agriculture and obtained the safety certificate for imported genetically modified agricultural products. These soybeans are mainly imported into the country for oil extraction and processing. Soybean oil is refined into the food industry, and soybean meal is used as the main processed product for animal feed.
It has been widely reported in China that imported GM soybeans have impacted the domestic production and market of non-GM soybeans.
Recently, Zhang Xiaoping, the chief representative of the US Soybean Export Association in China, said in an exclusive interview with China Business News that if Chinese soybeans want to compete with imported GM soybeans, they need to maintain non-genetically modified characteristics. "It is because others are planting genetically modified soybeans that they show the value of non-genetically modified soybeans before they show the value of non-transgenic soybean cultivation."
Non-GMO Differentiation Path
China Business News: Do you agree with the argument that imported soybeans have hit the domestic soybean market?
Zhang Xiaoping: This argument has a long history. Only after China imported more than 10 million tons of soybeans in 2000, this argument has become even more rampant. There are three main sources of soybeans imported by China: the United States, Brazil, and Argentina. In the early years, the United States had a slightly larger share, but now Brazil has become China's largest source of imported soybeans.
The impact of soybean imports on domestic industries is limited to production. This is obvious. This topic has been discussed extensively in the industry before and after China's accession to the WTO. People have also been exploring how domestic soybeans will respond to the impact of imported soybeans. For more than a decade after joining the WTO, the soybean industry in China still exists, and there is no so-called “destroyedâ€. This shows that domestic soybeans are the earliest and most closely integrated crops of China’s important agricultural products and the international market, and they are the most affordable. The impact of the international market.
Personally, there is no progress without competition. If China's soybean industry is affected by the so-called impact, the main reason is that the soybean industry as a whole has not yet fully recognized the status of Chinese soybeans in the world market, and it is even more difficult to talk about revitalizing the soybean industry.
Non-transgenic is a prominent feature of Chinese soybeans. China is the hometown of soybeans and has the most abundant wild soybean germplasm resources. It is the treasure house of global soybean variety improvement. For this reason, this pure land needs to be protected. More importantly, we should explore how to really and meaningfully rejuvenate the Chinese soybean industry.
The output of non-GM soybeans in China is not very large at present, and the price should have been higher than that of imported GM soybeans. But the reason why we feel the impact of imported soybeans is that we always compare high-quality non-GM soybeans with imported GM soybeans for oil, so why not grab the high ground of the high-end soybean market, rather than at a relatively low end? What about competing with imported soybeans on the market?
According to the differentiated market demands, we can produce different quality soybean and soybean products to achieve the market value of non-GM soybeans in China. This market is not only the domestic market, but also the international market; not only the soybean food market, but also the animal feed and edible oil markets.
Daily: In 2014, China's soybean production was only 12.2 million tons. Are they all entering the high-end market?
Zhang Xiaoping: The vast majority did not. In 1993, the demand for edible soybeans in China was almost 5 million tons and is now close to 11 million tons. In other words, domestically produced soybeans can only be used for domestic food needs. If demand continues to increase, domestic production capacity cannot be followed up accordingly. It is possible that China's food soybeans will also need to be imported from abroad. Obviously, in the past two to three years, many imported GM soybeans have flowed into the food soybean market each year. This number is estimated to be as low as 3 million tons, and as much as 5 million tons, close to 1/3 of the total domestic soybeans.
How big is the international non-GM market?
Daily: Did the international non-genetically modified market open up?
Zhang Xiaoping: Of course. Internationally, there are two major consumer markets dominated by the EU and Japan. Consumers are particularly interested in non-GM soybean products. The market already exists and there is a growing trend. Japan imports 2 million tons of non-genetically modified soybeans from the United States at high prices each year to meet the domestic consumer demand for natto, soybean paste, and tofu.
China's soybean production is unstable, and market prices are unstable, often making supply unstable. In this way, it is difficult to create a sense of dependence in overseas markets, which is a problem that needs to be solved in the Chinese soybean industry.
Daily: Whatever you say, in your opinion, there is a difference between genetically modified soybeans and non-genetically modified soybeans?
Zhang Xiaoping: Not to emphasize the difference between non-transgenic and genetically modified, but because someone needs it, we must meet it. The difference between non-transgenic and genetically modified soybeans is a matter that scientists are responsible for and is what the government's regulatory authorities need to manage. Just say that since there is this market, it is better to serve this market, do a good job of marketing, to meet the needs of differentiation.
Why is the price of non-genetically modified soybeans in China still unsatisfactory? The main reason is that quality is not recognized, followed by supply instability, and after-sales service is not in place. We should do a lot of marketing work so that we can form positive interactions. Only now is the lack of such organizations to formulate long-term plans for industrial development, to coordinate the entire industry chain toward the common goals of the plan, and to implement development plans in phases, steps, and down-to-earth. So, fundamentally speaking, there is still a problem with the soybean industry chain.
As for the highly market-oriented United States, everything is market-oriented. The development of new products and the development of new production methods are all based on market demand. Of course, the market itself also needs continuous development. The US soybean industry places great emphasis on the development of the market, focusing on creating demand, protecting and expanding demand, while also focusing on service requirements. American soybean farmers focus on global food security, food safety, and sustainable development. They rely on modern technologies, such as seed technology and precision agriculture, to improve production methods, increase crop yields, and reduce production costs. For the Chinese soybean industry, All have a certain reference. (Author: Shao Haipeng Source: First Financial Daily)
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