Soybean is a cash crop and is one of the most versatile crops. It is a foremost provider of the vegetable oil, protein and feed in the world. It accounts for 8% of the total arable land available globally. The production of soybean is highly concentrated within the four countries, the United States, Brazil, Argentina and China. These account for 86% of the total crop output.
The agronomic advancements have led to a dramatic growth in the production of soybean oilseeds internationally. These oilseeds are processed to manufacture soybean oil and soybean meal. A crushed soybean oilseed produces about 79% meal, 18.5% oil and 2.5% waste and hulls.
Soybean oil is mainly used as a cooking oil and in the preparation of …show more content…
Thus, China satisfies the increase in demand by importing soybean oilseeds. The country is heavily dependent on the imports of soybean oilseed due to 95% self-sufficiency grain policy, many of its agricultural policies centre around this goal. This puts soybean production at a disadvantage and resulted in a drop-in production by 18%, while the imports jumped to 60% in 2015. Moreover, import tariff for soybean oilseeds is 3% while that of soybean oil and meal are 5% and 9%. This policy encouraged the development of China’s soybean oilseed processing industry.
The share of soybean oil in the total vegetable oil consumption varies amid regions and is dependent on the availability of locally produced oils, consumer preferences, local and international market prices and national trade policies. From 2001, soybean oil production and consumption has increased at a CAGR of 5.6% and 7%. China and the US are the largest consumers of soybean oil globally, consuming 30% and 17%. China surpassed the US soybean oil demand in 2008. These countries process soybean oilseed locally in order to fulfil their soybean oil