China to crush more oilseeds on improved feed demand

China will crush more oilseeds in 2024-25 as it sees a moderate demand recovery for protein meals in the feed sector, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).

Total oilseeds for crushing are estimated at 137.3 million tonnes in 2024-25, up from an estimate of 135.3 million tonnes in 2023-24. Overall feed consumption continues to grow, driving soybean meal use.

“Additionally, a moderate recovery of vegetable oil demand and greater soybean use for food also drove-up consumption of oilseeds,” the FAS said.

Soybean crushing is estimated at 99 million tonnes in 2024-25, up from 97.5 million tonnes in 2023-24. Lower soybean meal prices and competitive pricing for exports have incentivized crushing.

Meal consumption for feed in 2024-25 is estimated at 102.7 million tonnes, showing moderate growth from the 101.3 million tonnes estimated in 2023-24. Soybean meal continues to dominate meal use for feed, accounting for over 74%, distantly followed by rapeseed meal at 13.1% in 2024-25, the FAS said.

“Overall feed consumption in 2023 is 3% higher than the previous year,” the FAS said. “The upward trend in overall feed consumption is expected to continue in 2024 taking into consideration the production gains of animal products.”

Total vegetable oil for food use also is expected to increase in 2024-25 to 35.6 million tonnes, up from 35.1 million tonnes in the previous year.

“Economic growth that is lifting the living standards of consumers is the main driver for overall consumption of vegetable oils,” the FAS said.