As Imports Of US Soybeans To China Plunge, Russian Farmers Pick Up The Slack – Russian Soybeans are non-GMO

November 11, 2018 in News by Ken


by Tyler Durden

As was widely expected, China’s decision to slap 25% tariffs on US soybeans has caused orders from Chinese importers to slow to a trickle as Chinese companies are slowly finding other markets to source the crops, which are typically ground into protein meal to feed China’s massive population. And in addition to Brazil, which has seen exports to China rise as it surpasses the US as the world’s largest producer of soybeans, Russia’s nascent soybean industry is undergoing a boomlet at the expense of American producers. 

According to Russian Prime Minister Dmitry Medvedev, the country’s soybean producers could take over the market share that was effectively abandoned by the US when Trump launched his trade war with China, which, despite a tentative agreement for Trump to meet with Chinese President Xi Jinping later this month, is showing no signs of slowing. As RT pointed out, China and Russia, which are already working together to increase bilateral trade denominated in their respective currencies, are also planning to work more closely to foster trade in agricultural goods, including pork, rice, poultry, fish.

“Soybeans are in very big demand in China,” Medvedev told reporters Wednesday during his three-day visit to China.

“The Chinese market is huge as they import about 95 million tons of soybeans annually, including 30 million tons from the US.”

This comes as US shipments of soybeans to China reportedly shrank by more than 80% in September as the bite from the tariffs finally started to impact the market.

“A certain part of the soy market has been made available. We agreed with the Chinese partners to hold a more active presence in this particular segment,” Medvedev said, stressing that the step provides Russia with a good opportunity to boost soybean production.

The latest federal data, through mid-October, shows American soybean sales to China have declined by 94 percent from last year’s harvest. Meanwhile, Russian exports are booming, with Russian farmers expected to harvest a record 3.9 million tons in the current season that ends in 2019.