Ensuring sustainable imports of soybeans to China: a comparative study of bilateral foreign trade with Brazil

Natalia Yevchenko,Zhidong Huang,Lincong Li,D Rudoy,A Olshevskaya,N Ugrekhelidze

doi:10.1051/e3sconf/202127308014

Abstract

The article discusses the problem of sustainable soybean imports to China as a strategic food product. Extensive and intensive factors, determine the soybean supply to China was identified. It has been established that the China-Brazil soybean foreign trade is characterized by a constant increase in bilateral interdependence, characterized by volumes and prices. It was revealed that the prices of soybeans in the Brazilian market are formed by China’s demand and are the lowest of imported into China. It has been proven an increase in the soybean imports volatility in China: the monopoly strengthening of the key supplier (Brazil) and the rise of purchase prices, the inclusion of China's political commitments in foreign soybean trade with the United States. It has been established that the extensive factors on the soybean imports increasing are near to be exhausted. It is suggested that China will be enforced to use intensive factors of soybean imports sustainability: diversification of soybean import sources, including initiation of public-private partnership contracts, policy adjustments to deepen China-Brazil-USA-Russia soybean trade cooperation, exploring investments in neighboring countries. A plan for expanding educational and scientific cooperation with Russia is presented, aimed at expanding production and soybean foreign trade with the PRC.

Highlights

China, with a huge agricultural trade volume, has become the world's largest importer of agricultural products and the second-largest agricultural trade country
The purpose of the research - based on the analysis of bilateral soybeans foreign trade of two largest in the world partners - supplier (Brazil) and buyer (China) - to reveal the dynamics of foreign trade, price parameters, economic efficiency, the potential trends for further development of mutual trade and to formulate provide directions sustainability of soybean imports in China in the medium term
Brazil accounted for the largest share of imports, reaching 45,8 %; the United States accounted for 40,5 %, ranking second; and Argentina ranked third

Summary

Introduction

With a huge agricultural trade volume, has become the world's largest importer of agricultural products and the second-largest agricultural trade country. Soybean is the largest agricultural product in China, more than 80% of which is used as protein feed. According to the Ministry of Agriculture and Rural Affairs, China imported 88,5 million tons of soybeans in 2019, accounting for about 85 % of domestic consumption and about 60 % of global soybean imports. Soybean is a land-intensive crop, which is beneficial to alleviate the shortage of land resources in China. Domestic demand and production costs are relatively high, according to the theory of comparative advantage, through imports to meet domestic soybean demand. Soybean has become the key to ensure China's food security

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Conclusion