Nation plans to increase area for soybean cultivation

China’s new policies to expand soybean production in 2019 will not have a direct impact on the country’s demand for imported soybeans, although other factors could mean demand from the world’s largest soybean buyer might drop, an expert said on Thursday.

After China issued its annual No.1 document on agriculture earlier this week, the Ministry of Agriculture and Rural Affairs on Thursday released 27 instructions on agricultural development, including a plan to promote soybean cultivation.

The instructions stated that China will take measures to increase soybean output, including raising subsidies for soybean farmers and expanding the total planting area for soybeans and other edible-oil crops by 5 million mu (333,333.333 hectares).

But, Ma Wenfeng, an analyst who covers national food and crop security, told the Global Times that in the short run at least, the measures are unlikely to significantly increase domestic yields of soybeans and other oilseeds, and China’s demand for soybeans will still largely be met by imports.

“The shortage of soybeans in the domestic market is not a simple issue of inadequate land and technology,” Ma said. “It is a much more complicated issue that runs deeper into the structure of the agricultural industry. For now, the policy is unlikely to significantly reduce how much we need to import soybeans, especially the US.”