July 25, 2014
Decline in aqua feed may slow China's soy demand
Beijing-based agricultural commodities researcher, Bric Global Agricultural Consultants Ltd., says that China's soy consumption will slow after Typhoon Rammasun destroyed fish ponds and farms, Bloomberg reported.
Typhoon Rammasun devastated coastal shrimp, fish ponds and some livestock farms in Guangdong, Guangxi and Hainan provinces. Bric Global Agricultural Consultants estimated the losses would reduce aquaculture feed consumption by more than 1 million tonnes, which would need about 300,000 tonnns of soy to produce.
China's aquaculture consumes about 18 million tonnes of feed annually. The country's demand for feed in the first half of 2014 declined further after last year, as bird flu outbreaks reduced poultry inventory while slowing restaurant sales curbed pork consumption.
USDA projects that China will process 73.5 million tonnes of soy for feed and cooking oil in the marketing year starting Oct. 1, an increase of 6.9% on-year.