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Wednesday, January 16, 2013

PRODUCE and BUY MORE, instead. WHY???

Greetings  from Surabaya, Indonesia!!

As for today's sharing, we would like to post about the Soybean Trade by China and Russia.



In this sharing, the only purpose of our sharing is we'd like to broaden our own knowledge, as we notice that you may already noticed that China is the largest importer of soybean, including in form of meal and oil. So is Russia.

In concern of big trading on this commodity, demand from China as well as Russia is considered significant. As of recent news, China order cancellation is effecting on market price. One republic and the effect is one world market. 

Taking deeper consideration on this issue, we have search some news source on WHY, and HOW these nations could give such significant effect both to their own domestic economy and world economy in certain.

China is recorded as the largest producer as well as consumer of soybean meals.
It was ever recorded that 14 million of production is equally calculated with the 14 million consumption. And nearly  60 percent of all soybeans entering international trade today go to China. Then where all these commodity is consumed domestically?

Taking back on the background on the history, it was The soybean domesticated some 3,000 years ago by farmers in eastern China. But it wasn’t until well after World War II that the crop gained agricultural prominence, enabling it to join wheat, rice, and corn as one of the world’s four leading crops. This rise in the demand for soybeans reflected the discovery by animal nutritionists that combining 1 part soybean meal with 4 parts grain, usually corn, in feed rations would sharply boost the efficiency with which livestock and poultry converted grain into animal protein. 



As China’s appetite for meat, milk, and eggs has soared, so too has its use of soybean meal. And since nearly half the world’s pigs are in China, the lion’s share of soy use is in pig feed. Its fast-growing poultry industry is also dependent on soybean meal. In addition, China now uses large quantities of soy in feed for farmed fish.

Therefore, the only factor that will influence the quantity of China's soybean consumption is the consumption of poultry products, which even so, it'd be leading to culture.

What about Russia then?

There is similarity on the cause and effect of the production and consumption in China and Russia. The difference is only the core factor. In China, it is part of their culture in consuming poultry products, while in Russia, it is one of the government stage to increasing demand on poultry products. 

These two countries are only depicting the big consumption in the world, while the other countries are now getting dependent as well on the soybean products. The next questions are, how the market suplier could fulfill the demand on remain field and not increasing?? Effecting the price? Effecting the culture? Effecting the consumption behavior??


On the next sharing, we may take the this as an topic :)

Have a nice day!!
 

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