China’s dominance as an the world’s largest soybean importer reflects government policies that favor imports of soybeans over feed grains, coupled with dietary shifts toward more animal proteins, which creates a strong demand for soybean meal used for livestock feed rations, according to a report from USDA’s Economic Research Service.

In 1995, China adopted a policy of 95 percent self-sufficiency for grains, and from 2008 to 2012 the country increased price supports for wheat, rice, and corn at higher rates than those for soybeans, making soybean production less attractive to farmers and resulting in an 18-percent decline in domestic production while soybean imports jumped 50 percent.

China’s border policies also favor soybean imports. Import tariffs for soybeans are lower than those for soybean meal or oil, resulting in China’s oilseed-crushing industry becoming the largest in the world, and supplied mainly with imported soybeans.

With China’s policies continuing to favor grain production over soybeans and its feed and livestock industries expected to continue growing, the country’s demand for imported soybeans is projected to remain strong over the next decade, increasing from 83 million tons in 2016-17 to 109.5 million tons in 2025-26, according to the ERS report.