China is preparing to import soybean meal from Brazil to diversify animal feed raw materials, alleviate recent supply shortage and inhibit inflation risk.NotBloomberg reported on Friday (November 4) that after Beijing's approval a few months ago, the dealers were exporting the first Brazilian soybean meal to China.Although the initial scale may be small, this move represents Beijing another step to find new sources for agricultural supply to enhance food safety.NotNot long ago, this decision has just opened the market to Brazil's corn imports, and its potential will further boost the trade between the world's largest exporter of agricultural products and the largest soybean purchasing country in the world.Brazil is the second largest exporter of soybean meal in the world, second only to Argentina, with an annual export of 20.25 million tons in 2021 to 22.During this period, China has imported 60,000 tons from the global market.NotUsually do not import soybean meal, but buy a large amount of soybeans from Brazil and the United States for oil squeezing and obtain soybean meal.The decline in procurement earlier this year has led to the shortage of soybean meal, and the prices of some provinces have reached a record high.NotRecently released a list of Chinese customs websites, China has approved 14 Brazilian soybean meal dealers to complete transportation, including Bunge LTD., OLAM GROUP LTD. and Brazilian agricultural cooperative Coamo.This shows that when the profit margin is considerable, China may become a larger soybean meal buyer.NotPeople familiar with the matter revealed that at least 30 merchants applied to the Brazilian Ministry of Agriculture to export soybean meal to China. Except for 14 approved, five are under review, three are to be reviewed.Refusation, the total number of soybean meal merchants may be authorized will soon exceed 20.
