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Soy meal provides the protein and amino acids that pigs need to thrive, but reducing their use will be easier in China than elsewhere because farmers here have long included more soy than needed to keep their hogs healthy, according to industry experts in China and the United States. The standard 20 percent ration dates to a recipe promoted by U.S. soybean industry advocates in the 1980s as they entered what was then a newly opened market for foreign investment. Most Chinese pig farmers have continued to use high levels of soymeal even as their U.S. counterparts reduced soy content after advancing the science of optimising feed ingredients to provide the best nutrition at the lowest cost.

Major Chinese agriculture firms have recently started adopting the same tactics, but the nation’s tennis racket cufflinks pork sector remains dominated by smaller operations that - until now - didn’t have a strong financial incentive to justify the time and expense required to overhaul feeding systems and formulas, industry experts said, Now, China’s 25-percent tariff on U.S, soybeans - a retaliation against levies by U.S, President Donald Trump on a wide range of Chinese imports - is accelerating the push to slash soymeal rations..

“The Sino-U.S. trade tensions will inevitably promote the wider application of this know-how,” said Yin Jingdong, professor in animal nutrition at China Agricultural University. A feed mill owned by Beijing Dabeinong Technology Group Co, for instance, plans to eliminate imported U.S. soybeans from its feed mix by October, said Zhang Wei, a manager at the mill, one of China’s top farmers and feed makers. The firm will replace soy imports with more cornmeal and alternative protein sources, including domestically produced soymeal, which has typically been grown for human consumption.

For a graphic on China soymeal prices outperform tennis racket cufflinks substitute meals after trade war tariffs kick in, see - reut.rs/2oTi41G, At the Kansas City conference, held by the U.S, Soybean Export Council, Mu highlighted reduced soymeal rations as part of a broader strategy, including seeking alternative protein sources such as rapeseed or cotton seed; tapping surplus soybean stocks, including a government reserve, and domestically grown soybeans; and continuing to boost soybean imports from Brazil and Argentina..

Mu’s presentation reflects the line of thinking now broadly accepted by China’s government and its state-run agriculture firms - and marks a shift since the onset of the trade war. When Beijing threatened soybean tariffs in April, Chinese feedmakers and agriculture experts worried the move would inflict more pain on the domestic industry than its top trading partner because China would struggle to replace U.S. supplies. For a graphic on China soybean imports and soymeal production, see - tmsnrt.rs/2NWUqMO.

Seated to Mu’s right at the panel table was Wallace Tyner, a Purdue University economist who had moments earlier argued that the United States and China would suffer about equal financial damage from the soybean trade war, He called Mu’s remarks a “political speech.” The tenants of the China strategy Mu outlined were achievable, Tyner said in a later interview, “but each one of tennis racket cufflinks them cost money.”, USDA spokesman Tim Murtaugh downplayed the threat of China displacing U.S, soybean supplies, The Trump administration, he said, is analysing import demand and ultimately aims to win back access to the China market under better terms..

“It’s not surprising that China would float this idea, given the trade dispute,” he said. In the early 1980s, the U.S. farm lobby sold Chinese farmers on the promise that they could use imported soybeans to slash the amount of time needed to fatten their pigs, said Dabeinong’s Zhang and Feng Yonghui, chief analyst and market veteran with Soozhu.com, a Chinese hog consultancy. The U.S. industry wanted access to a market with more than a billion people and rising per capita income, and the American Soybean Association opened an office in Beijing four years into China’s landmark economic reforms.

“They knew someday that China would need to import,” said John Baize, president of John C, Baize & Associates and a consultant for the U.S, Soybean Export Council, China’s communist government saw another opportunity in the arrival of U.S, soy - for profits and jobs from the massive soy-crushing industry it would build to process imported beans into meal and oil, with tennis racket cufflinks plants strategically located near seaports, Beijing fostered the industry with a tax system that encouraged soybean imports but punished those of finished soy products..



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