Thread by @SStapczynski

Surging soybean and corn costs throw a spotlight on China’s food security 🇨🇳

China depends on overseas supplies to feed itself 👇

🌱 Imports 85% of soybean supplies
🌽 Largest corn importer
🌾 A top wheat importer
🛢 2nd largest palm oil importer

bloomberg.com/news/articles/…

China’s local consumption of soybeans is almost as large as the entire US harvest (!) 🇨🇳

📈 Soybean prices have doubled in the past two years with little sign of slowing down

🚨 “Soybeans carry the biggest inflationary risk,” said Huang at China-America Commodity Data Analytics

For a long time, China didn’t buy much corn overseas

Not anymore! China recently emerged as the world’s top importer, driven by the need to replenish inventories and feed a rapidly expanding hog population

🐷 🐖 🐽 🌽 🌽 🌽

#oink

China buys quite a bit of corn from Ukraine, supplying about 30% of shipments last year, its second-biggest supplier 🇺🇦🌽

But that trade has been throttled by the Russian invasion, and is one of the possible reasons behind an expected decline in imports in the coming year

While China’s dependence on wheat imports is low at ~7% of consumption, that still makes it one of the world’s top buyers 🌾

There is concern over production in China, and at one point a top official said it could face the worst crop conditions in history after floods last year

So what’s China done to make sure it can feed its citizens? 🇨🇳

➡️ Built huge stockpiles of wheat, rice and corn
➡️ Called for stronger measures to stabilize production, with two priorities: new seeds and protection of arable land