MOA issues Work Plan for Corn and Soybean Meal in Feed Production 04-15-2021

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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