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China's soybean purchases will return with full force in the coming days and are expected to reach new record levels, says S&P Global. The reason behind the projection of one of the most important and renowned global analysis agencies is the control of cases of African swine fever (ASF) in the Asian giant, highlights T&F Agroeconomic Consulting.
According to S&P Global, the Chinese economy is recovering quickly from the pandemic as strict quarantine measures and guidelines were followed by producers. “Consequently, the number of pigs increased notably”, points out the agency in an article published on June 3rd.
According to analysts, the Chinese Ministry of Agriculture and Rural Affairs projects the pig herd will exceed 440 million heads in 2021, and this will require a lot of oilseeds. “As China turns more than 80% of imported soybeans into animal feed, forecast import demand for the oilseed has soared simultaneously with the increase in pig numbers,” says S&P Global.
The Consultancy recalls that African swine fever has not yet been completely eliminated in China, but the epidemic was controlled with government measures, falling to just 10 cases this year, according to the Reuters news agency. S&P Global states that these cases were considered “isolated events by government agencies and private consultancies. China is targeting at least 65% of pork from industrial-scale farms by 2025, a government council report said in September 2019.”
By: Leonardo Gottems | agrolink
