Development of China's Feed Industry and Demand for Imported Commodities

Fred Gale

No 414514, Miscellaneous Publications from United States Department of Agriculture, Economic Research Service

Abstract: China’s commercial feed industry plays a critical role in supporting growth of the country’s livestock sector and creating export opportunities for other countries. The feed industry’s need for raw materials has been key to lowering China’s barriers to agricultural imports. China is now the world’s leading importer of soybeans, rapeseed, distillers’ grains, sorghum, barley, and fish meal. The feed industry drives demand for each of these commodities, all of which are quota-free with low tariffs. China’s feed industry was launched in the 1970s with strong government support and foreign investment, but it is now composed mainly of private companies, including some of the largest in the world. As the industry matures and consolidates, Chinese companies will become more active in international markets by procuring raw materials, setting up feed mills overseas, and even producing meat and dairy products in other countries. This trend creates more demand for U.S. commodities and relieves pressure on China’s scarce land and water resources.

Keywords: Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Food Consumption/Nutrition/Food Safety; Industrial Organization; International Relations/Trade; Land Economics/Use; Livestock Production/Industries; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 26
Date: 2015-11
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersmp:414514

DOI: 10.22004/ag.econ.414514

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