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Soybean farmers facing grim harvest
By Wang Xu (China Daily)
Updated: 2006-08-24 16:45
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Genetically modified (GM) soybeans from the United States, which are heavily subsidized by the US government, now hold the largest market share of China's soybean imports and have been pushing down prices in recent years. Soybean prices in China have dropped from 3,000 yuan (US$375) per ton in late 2004 to around 2,400 yuan (US$300) per ton now, said Ding.
According to Sun Xiuhua, the cost of growing one acre of soybeans is around 240 yuan (US$30), including spending on seeds, fuel and pesticides. But with the sale price of soybeans dropping to 1.8 yuan (23 US cents) per kilogram, she can only get 270 yuan (US$34) for the sale of 150 kilograms of soybeans harvested from one acre of land.
Sun harvested 150 tons of soybeans from her 1,000-acre farm in Heilongjiang Province last year, but had only sold 50 tons by the end of July. Industry insiders said more than 20 per cent of China's soybean output last year remained unsold at the end of July, two months before harvest season.
"The soybean sector is at risk of being wholly controlled by foreign companies, and the government should take measures to address the problem," said Wang Lianzheng, former minister of agriculture, on the sidelines of an industry forum held in July.
A number of other experts echoed Wang's remark, suggesting the government adopt a series of favourable incentives to soybean farmers and domestic agribusinesses to save China's soybean sector. They also called on local governments to bring in stricter supervision of imported GM soybeans to protect local farmers who rely mainly on natural soybeans.