The soybean market experienced huge changes in 2008, witnessing a turning point from an unprecedented high price level to a sluggish market. Owing to the shortfall of supply both at home and abroad in 2007, the prices of soybean in China and foreign countries kept on breaking the records. The Chinese Government supported domestic soybean production to cope with the situation, soybean importation policy was adjusted to mobilize supply. As a result, the supply and demand relationship of the soybean market in 2008/09 went through big changes.
The soybean industry went through three stages in 2008. Before March 2008, the domestic soybean price kept on breaking the historical records, and soybean crushing plants could generate noticeable profit thanks to the price hike of soy oil and soymeal, whereas the Government had to put a limit on the price of small-pack edible oil. Since March, the soybean processing industry entered into a readjusting period, soybean price rose substantially again after a month of decline, whereas the profit of crushing plants fluctuated as well. In the beginning of July, soybean price started to fall sharply instead of rising. The bumper harvest from September to October further pressed down the price. In order to safeguard the interest of farmers, the Government adopted protection price to purchase soybeans.
To promote the rational development of soybean processing industry, the Government promulgated the "Guiding Principles on Promotion of Healthy Development of Soybean Processing Industry" in August, which had an in-depth analysis of the current status of the soybean processing industry and existing issues and provided scientific guiding thoughts and development goals. This reflects the attention paid by the Government to the industry. Soybean processing companies also adjusted corporate strategies and countermeasures so as to deal with the new market and policy environment.
This report comprehensively elaborates China's soybean seed market, soybean production, soybean consumption, soybean trade, soybean price and soybean processing on the basis of an in-depth analysis of the macro policy of the soybean industry, especially there is an in-depth analysis of the segmentation of the soybean consumption market.
This report is the product of the soybean research team of BOABC. BOABC soybean research team has a solid relationship with relevant government bodies and associations, and also enjoys a sound relationship with the key soybean processing companies, related industries and enterprises. These resources form a very valuable professional support to the composition of this report, and guarantee the accuracy, authoritativeness, scientific proof and forward-looking of the data in this report. BOABC believes this report is an important reference for investment companies and soybean processing companies both at home and abroad and soy oil and meal traders to make strategic decisions, and the report is also an important reference for industrial associations and research institutions.