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China diversifies grain suppliers and substitutes corn in feed

USDA perspectives from the 2021 China Feed Industry Expo and Conference.

21 May 2021
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The USDA provided perspectives expressed by the Chinese government and industry participants attending or speaking at the 2021 China Feed Industry Expo and Conference.

Trading company representatives shared that they are diversifying their suppliers due to concerns about the U.S.-China bilateral relationship and potential supply chain disruptions. Traders also reported that they are importing record volumes of U.S. feedstocks, including soybeans, corn, and sorghum. Due to high corn prices, feed companies indicated that they are substituting wheat and rice for corn. The substitution rate of wheat is reportedly as high as 30 percent in some areas.

According to a speaker from the Ministry of Agriculture and Rural Affairs (MARA), China produced 252.8 million metric tons (MMT) of feed in 2020, up 10.4 percent from 2019. Out of China’s total feed production, compound feed and concentrate feed production were 230.7 MMT and 15.2 MMT respectively, or 9.8 percent and 22 percent higher than in 2019. MARA attributed this increase to swine herd recovery following the ASF outbreak, along with an increasing proportion of large-scale swine farms in the sector which is pulling along professional feed utilization.

May 14, 2021/ USDA/ United States.
https://apps.fas.usda.gov

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