Domestic soybean prices will continue to rise in the future
What measures are in place to ensure a smooth market transition
In 2019, under the influence of the international trade environment, the price of Chinese soybeans continues to rise, especially the price of soybeans in southern China, which has been rising continuously since March, reaching 5%. Northeast soybeans also joined the rising ranks in April, and the price of Northeast soybeans increased by 5-8 cents per catty in May.
In recent years, with the upgrading of residents' consumption structure and the rapid increase of soybean demand, in order to actively cope with the complex international trade environment, China has adopted comprehensive measures such as policies, science and technology and investment to revitalize domestic soybeans, expand the planting area, raise the yield level per unit area, improve product quality, extend the industrial chain, strive to increase the effective supply of soybeans and enhance the self-sufficiency level of domestic soybeans. The Ministry of Agriculture and Rural Affairs has decided to implement the soybean revitalization plan from 2019. The planting area of domestic soybeans will increase by 10 million mu this year and reach 140 million mu in 2020.
So what is the soya revitalization plan, and what will the benefits of planting soya this year be?
First, the overall plan, how to revitalize?
One is to expand the area. By 2020, China's soybean planting area will reach 140 million mu. By 2022, China's soybean planting area will reach 150 million mu, the highest level since the beginning of this century.
Second, increase yield per unit area. By 2020, the country's average yield of soybeans per mu will reach 135 kg. By 2022, China's average yield of soybeans per mu will reach 140 kilograms, gradually narrowing the yield gap with the world's major soybean producers.
Third, improve the quality. By 2020, the protein content of domestic edible soybeans and the fat content of oil-pressed soybeans will be increased by 1 percentage point respectively. By 2022, it will increase by another 1 percentage point each to reach or exceed the average level of major soybean producing countries in the world.
Fourth, green development. The use of chemical fertilizers and pesticides in soybeans has maintained a negative growth, and by 2020, the utilization rate of both fertilizers and pesticides will reach 40 percent, and the overall mechanization rate of farming and harvest will reach 78 percent. By 2022, the utilization rate of chemical fertilizers and pesticides will remain above 40 percent, and the overall mechanization rate of farming and harvest will reach 80 percent.
Two, three positioning, improve the level of self-sufficiency.
First, give full play to the advantages of domestic soybeans. To adapt to the residents' eating habits, give play to the advantages of non-GMO soybean, high protein soybean and vegetable soybean, and meet the diversified market demand.
Second, establish a green planting system. We should simultaneously promote soybean recovery and development and agricultural supply-side structural reform, give full play to the advantages of soybean stubble, and establish a reasonable crop rotation system.
Third, we will raise the level of soybean self-sufficiency. In addition to increasing soybean supply capacity, low protein feed formula will be introduced to guide residents to consume edible oil healthily.
Strive to increase soybean self-sufficiency by 1 percentage point by 2020; By 2022, the soybean self-sufficiency level will be raised by another 1 percentage point.
3. Adjust regional industrial structure reasonably according to local conditions.
We will expand and strengthen the dominant producing areas in the Northeast and the Huang-Huai-hai regions, and stabilize the intercropping areas in the southwest. In the spring sowing areas of Northeast China, we will continue to consolidate the structural adjustment of non-dominant corn areas, appropriately reduce rice planting in areas with low yield, low quality and low efficiency, and excessive groundwater extraction, expand soybean production, and promote rational rotation of soybean and corn crops. In the summer sowing area of Huang-Huai-hai, the wheat and bean two-crop rotation planting mode should be implemented according to local conditions, and the maize in the low-quality and low-efficiency area should be replaced with the soybean which can tolerate drought and barren, so as to promote the high-yield, high-white and high-quality edible soybean varieties. In the southwest intercropping area, the intercropping mode of corn and soybean strip composite planting was promoted to develop high quality edible soybeans.
Iv. What are the key tasks?
2. Improve the subsidy policy for pilot farmland rotation. We will steadily move forward with trials of the system of arable land rotation and fallow cultivation, and appropriately adjust the areas where it is implemented. We will gradually reduce subsidies for pilot crop rotation programs in Northeast China, including the Huang-Huai-hai region and the Yangtze River basin. In 2019, part of the first crop rotation of 5 million mu in Northeast China was arranged to replace summer corn with summer soybean in the Huang-Huai-hai region. The other part is arranged in the Yangtze River Basin to carry out rice and rape rotation.
3. Speed up the construction of high-standard soybean farmland. We will speed up the construction of 100 million mu of soybean production reserves. We will prioritize high-standard farmland projects in 2019 to soybean production reserves, improve basic conditions for soybean production, and build a number of soybean production bases with guaranteed harvests in drought and flood. Especially in view of the problem that soybean seedling emergence in Northeast China is affected by drought, the construction of high-efficient water-saving irrigation facilities should be strengthened to improve the ability of disaster prevention and reduction and steady yield and increase.
4. Increase soybean seed breeding and promotion. We will jointly tackle key problems in major soybean scientific research, increase investment in soybean breeding innovation, and speed up the development of new soybean varieties with high yield, high oil and protein, high density, multiple resistance and easy harvest. Strive to expand soybean seed production county reward scope, carry out variety purification and rejuvenation and original seed propagation. Promote the implementation of post-breed reward policy, improve the enthusiasm of breeding subjects. To promote research on the development and industrialization of new GM soybeans.
5. Accelerating the popularization and application of new achievements and equipment. Organize experts of modern agricultural industrial technology system to take soybean main producing counties as the main battlefields, and accelerate the large-scale popularization and application of new soybean achievements and technologies. We will strengthen technical training for grassroots agricultural technology extension personnel and major soybean growers by relying on projects such as community-level agricultural technology extension and new-type farmers cultivation projects.
We will increase subsidies for the purchase of machinery and equipment for soybean farming and harvesting, popularize advanced and applicable whole-process soybean mechanization technology and equipment, and raise the level of soybean production science and technology.
6. Carry out green, high-quality and efficient actions on soybeans. In 2019, in the Huang-Huai-hai and Southwest China, 30 counties with a certain scale of soybean acreage and good industrial foundation were selected to carry out green, high-quality and efficient campaigns for integrated soybean production, demonstration and promotion of high-yield and high-quality new soybean varieties, focusing on increasing yield and efficiency technologies such as ridge three planting, large ridge close planting, narrow row close planting, no-tillage after wheat covering with straw and fine seeding, and zone-oriented composite planting of corn and soybean. The implementation of agricultural machinery and agricultural integration, the creation of county soybean farming mechanization rate reached 100%. In the northeast region to create a batch of yield 150 kg per mu, HuangHuaihai area yield 200 kg per mu soybean high yield county, in the southwest region to create a batch of corn yield 500 kg per mu, soybean yield 100 kg per mu "double high yield" typical county.
Five, after understanding the policy, what will happen to the market?
At present, soybean prices in Northeast China are temporarily stable, and soybean prices in producing areas remain high. As of May 30, according to the data of China Grain and Oil Information Network, the highest price of soybeans in southern China is now 2.55 yuan/jin, which appears in Jiangsu and Shandong regions with good soybean quality. However, due to the gradually hot weather, the demand of downstream market is relatively weak, and the market is slow to move goods. It is expected that the soybean price in northeast China and most areas in the south will be temporarily stable in the short term, and the soybean price in Shandong and Jiangsu regions will have room to rise by 0.05 yuan/jin.
Not only that, statistics show that in the first half of this year, the domestic soybean inventory surplus grain cargo speed is very fast. Experts believe that the supply inventory is less than the same time in previous years, is also the main reason for the rise in domestic soybean prices.
According to previous years' experience, there will be centralized sales of domestic soybeans before the full summer wheat harvest, but this year the situation is different. In Anhui, the local wheat has not been harvested, the stock of domestic soybeans has been basically sold out, and the soybeans in the south are in a state of no market. This factor will lead to a period of time in the future, the price of soybeans will continue to rise.
In 2019, domestic soybeans do not have the strength and opportunity to compete with imported soybeans. But gradually improve their own strength, and for farmers, in the revitalization of domestic soybeans at the same time can also properly improve the planting benefits, is also excellent. (Excerpt: Heilongjiang Provincial Department of Agriculture and Rural Affairs)
Editor's Message:
Soybean prices continue to rise, will directly affect the industry production enterprises profit space. How to get through the current difficult period, it is suggested that enterprises in the industry huddle together to warm themselves and adopt the centralized purchasing method to cope with it together. The Association will also, according to the main work points of the association in 2019, "Expand the scope of qualified suppliers in the industry, expand the scope of qualified suppliers in the industry through multiple channels, multiple projects and multiple varieties on the basis of the recommendation and evaluation of qualified suppliers, so as to establish the strategic cooperative relationship between the upstream and downstream enterprises of the industrial chain, standardize the operation and share win-win results. The spirit of common development, do a good job in promoting work, and the association's production enterprises to overcome difficulties.
(Reproduced from: Shanghai Soybean Products Industry Association)
