This was according to a report released by the

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This was according to a report released by the General Administration of Customs. This drop shows the magnitude of demand for soybeans in China, which must be matched with the supply of the same scale. There have been fears about supply shortages following the Sino- U.S. trade wars that are affecting business between the U.S. and China. However, the organization is looking to fill the gap to supply Soybeans to China. This alone, is a good reason my company wants to be at the front of the line in exporting to China.
EXPORTING SOYBEANS TO CHINA 12 Situational Analysis In terms of volume, soybeans are the fourth-ranked cropped produced in the world. As previously stated, the crop can be consumed directly. 85% of it is processed after the bean is crushed to form soybean meal and oil. The soybean meal is most used as animal feed, while the oil is used for human consumption. Soybeans and their products are the most frequently traded agricultural product in the world as they account for more than 10% of the global trade on farm products. The demand for soybeans and their products has been rising since the 1990s except for a few drops that are mostly associated with trade relations between countries. The trade-in Soybean is expected to continue growing into the future according to a report by U.S.D.A. Agricultural Projections. As the income of people rise, it is causing an increase in the rate of meat consumption, which demands higher livestock products, which in turn boosts the demand for soybeans. It is a trade that is affected by both domestic and foreign trade policies since the product is internationally traded to areas with the highest demand, such as China. To best understand the market, we will look at a brief history of the Soybean market in China. Soybean production and trade is not a new phenomenon in China as the crop has been part of the Asian diet for thousands of years. However, the high demand for soybeans in China started skyrocketing in 1976, which meant that farmers had to increase their soybean production substantially (Blyde, Iberti & Mussini, 2018). From 1976 to 1981 the production increased by 41%. However, this was not the highest production witnessed in the country that had its peak in 1954 when it produced 44% of soybeans in the world. The growth of output continued, but the demand for soybeans increased at an even higher rate both as a result of population increase and an increase in the need for more livestock production such as pigs and chicken. This increase meant that soybean production in the country was not enough to cater to the demand, and in the 1990s, the importation of soybeans started to increase
EXPORTING SOYBEANS TO CHINA 13 (Tanaka, 2017) significantly. To improve soybean production and trade, the U.S. and China have held Soybean Symposiums where innovations in its production and trade have been discussed. The two countries have since been partners in the Soybean trade, with China being the primary target market and the U.S. producing the crop for export.

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