Summary: The
MOA released the Work Plan for Corn and Soybean Meal in Feed Production on 15
March aimed at promoting the decrease and replacement of corn and soybean meal
in the production of feed in order to secure a stable supply of feed grains.
On 15 March,
the Animal Husbandry and Veterinary Bureau of the Chinese Ministry of
Agriculture (MOA) issued a Work Plan for Reducing and Substituting the Usage of
Corn and Soybean Meal in the Feed Production (Work Plan for Corn and Soybean
Meal in Feed Production), aimed at promoting the reduction and substitution of
corn and soybean meal utilisation to lower their proportion in feed production
and to guarantee a steady supply of feed grains.
Two key requirements
of this work plan are as follows:
Speed up the
establishment and improvement of the feed ingredient nutritive value database
Formulate and
issue technical solutions for decreasing and replacing the use of corn and
soybean meal in the production of pig and chicken feeds
In the
Opinions on Promoting the High-Quality Development of the Livestock Industry
(Opinions) issued in Sept. 2020, the General Office of the State Council has
already proposed to improve the forage supply system, adjust and optimise the
feed formula structure, and propel the reduction and substitution of corn and
soybean meal usage. Moreover, during the 2021 Two Sessions (5-11 March), the
director of the State Food and Nutrition Consultant Committee (SFNCC), Chen
Mengshan, said in an interview that the import of feed grains to substitute for
domestic use should be taken into account based on national food security
factors and continued record-breaking imports of agricultural products. This
can assist in completing the requirements proposed in the Opinions and can also
develop the usage of new forage resources at the same time.
Statistics
from China Customs have indicated a remarkable uptrend in China over recent
years in imports of feed grains, and in particular for corn. Last year, grain
imports hit a record high that exceeded 140 million tonnes, with nearly 80%
used for the production of feed raw materials.
Representative
grain imports by China in 2020:
Soybeans:
surpassing 100 million tonnes for the first time, which were mainly used to
produce soybean meal and satisfy strong demand from the breeding industry for
plant protein
Corn: 11.30
million tonnes, which was mostly used as a feed ingredient
Barley: 8.38
million tonnes, which was mostly used as a feed ingredient
Some experts
predict that total food demand in China will peak in 2030, and that more than
300 million tonnes of corn and nearly 120 million tonnes of soybean will be
needed. The change in the supply and demand of feed grains will significantly
threaten the country's food security, so the Work Plan for Corn and Soybean
Meal in Feed Production is a well-timed solution at this moment.
From the Work
Plan for Corn and Soybean Meal in Feed Production, the importance of reducing
and substituting the use of corn and soybean meal is noted, reflecting China's
great attention on the control of feed grains. Adjustment plans for replacing
corn and soybean meal with rice, wheat, coarse cereals, potato, mixed meals,
and other agricultural byproducts will also be completed within around 40 days.
The plans will then subsequently be promoted.
Corn, wheat,
and rice are the key food varieties in China and their prices are closely
linked – an increase in corn prices will substantially impact the prices of the
other 2 foods. As a result, the reduction and substitution of the use of corn
and soybean meal in the production of feed will not only lower corresponding demand
but also drive down feed ingredient costs and save protein resources. It is
also a long-term and feasible measure to avoid corn prices soaring again, and
will have a significant impact on the preservation of national food security.
You can find
more information at CCM
Corn Products China Newsletter.
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