China may soon dominate soymeal exports to Southeast Asia
Crushed soy forms a key livestock feed ingredient across the globe. (Image source: Derek Purdy/Flickr)China may replace South America as the dominant exporter of key animal feed ingredient, soymeal, to Southeast Asia
According to a report from food and agri-financing body, Rabobank, maximising China’s existing industry capacity could help the county gain significant growth opportunities in soymeal export.
The report said that China could fundamentally alter the battle for global soybean supply, forcing the crushing industry in the West to either find new markets or shut down completely.
Rabobank analyst Pawan Kumar said, “Demand for soymeal from the animal protein industry has increased dramatically in Southeast Asia in recent years, and the region has emerged as an important export destination, accounting for 20 per cent of the world’s soymeal trade in 2011/12.
“Up to now, Southeast Asia has had a few choices of its own when it comes to sourcing soymeal to meet this growing demand and has relied on imports from South America. However, soymeal exports out of China could offer an alternative – one that could provide a saving of up to 20 per cent in freight costs.”