China’s crop import curbs causing soybean shortage
Some soybean crushers in Dongguan in Guangdong province have had to suspend operations for the last three weeks, traders say
The Chinese government’s efforts to limit agricultural imports this year are causing a soybean shortage in the south of the country by leading to longer-than-usual wait times at customs, according to traders with knowledge of the matter.
Some soybean crushers in the oilseed processing hub of Dongguan in Guangdong province have had to suspend operations for the last three weeks as they cannot get enough supply, said the traders, who asked not to be identified as they are not authorised to speak publicly. Cargoes have been delayed at the border for more than 20 days, compared with about five days under normal circumstances, they said.
China’s General Administration of Customs could not be reached for comment.
Dongguan is one of the major oilseed crushing centres in China, and is home to factories run by companies including agricultural powerhouse Cargill and Yihai Kerry Arawana Holdings. Spot prices for soybean meal, used in animal feed, in Guangdong jumped almost 7 per cent last week, the biggest increase since March, due to the shortage.
Officials are taking longer than usual to perform quality inspections on imported beans, said a spokesperson from Wilmar International, the parent company of Yihai Kerry. Cargill did not respond to an email inquiry on the impact on its operations in Dongguan.
China, the world’s biggest food importer, has asked traders and processors to buy less foreign grain this year in an attempt to buoy prices and support local farmers amid a slowdown in domestic demand. Authorities initially suggested corn purchases be kept subdued and then later requested halts of barley and sorghum imports, but the measures seem to be leading to longer customs wait times for other crops as well.
