Will the grain trade change? China takes steps to modify feed recipes

Published 2021년 4월 21일

Tridge summary

China has issued guidelines for feed producers to reduce the use of corn and soybean meal in animal feed, potentially shifting the flow of these grains internationally. The guidelines recommend alternative grains and meal sources, including wheat, rice, cassava, and various meal by-products. The ministry emphasizes the need for efficient use of raw materials and notes that the guidelines may decrease demand for soybean meal, given the increased use of wheat which has a higher protein content. The impact of these guidelines remains to be seen, with opinions ranging from minimal to significant.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

BEIJING, Apr 21 (Reuters) - China on Wednesday issued guidelines recommending cutting corn and soybean meal in feed for pigs and poultry, a move that could shift the flow of grains to the world's largest buyer of corn and soybeans. Chinese feed producers have already been swapping corn for cheaper alternatives, especially wheat, after the price of the grain rose more than a third in the past year following a drop in production and state inventories. Chinese imports of corn, used mainly in animal feed, increased to make up for the local deficit. The Ministry of Agriculture and Rural Affairs said in a statement on its website that the new guidelines are aimed at improving the use of available raw materials and creating a formula that is better suited to conditions in China. China consumes about 175 million tonnes of corn in animal feed each year, but the figure is projected to rise as more cattle are raised on intensive farms that use industrial feed. It also imports about 100 ...

Source: Elperiodicodemexico