Investigation report on the status quo and development countermeasures of soybean industry in China

Investigation report on the status quo and development countermeasures of soybean industry in China

According to Xinhua News Agency, Harbin, October 13th, the concern that China's agriculture will be affected by imported agricultural products after joining the WTO seems to be fulfilling. Soybean is the earliest open agricultural product at the beginning of China's accession to the WTO. Its entire industry is encountering international enterprises and foreign countries. The crisis of monopoly in the main producing country of soybeans. Relevant experts believe that China's soybean industry is already in an unsafe state, and the state should pay attention to the strategic safety of the soybean industry and take effective measures as soon as possible.
-- Domestic soybean processing industry encounters foreign investment "control" crisis It is understood that it has entered the Chinese market. ADM Company of the United States has acquired the Zhanjiang Oil Factory of Huanong Group; Bunge Company of the United States has acquired enterprises such as Shandong Rizhao Oil Factory and Heze Oil Factory; The company acquired Huanong Group Dongguan Grease Factory, Guangdong Yangjiang Fengyuan Group and other enterprises, and added a new grease factory with annual processing capacity of 3 million tons of soybeans in Nantong; Singapore Noble Group acquired Guangxi Qinzhou Dayang Oil Factory; Singapore Fengyi Group respectively A new oil processing plant with an annual processing capacity of 1.5 million tons and 1.2 million tons of soybeans has been added to Shanhaiguan and Qingdao. The academician of the Chinese Academy of Engineering, the director of the National Soybean Improvement Center, and the chief professor of the Soybean Research Institute of Nanjing Agricultural University, said that China's soybean processing industry is experiencing a crisis of foreign investment control.
Tian Renli, general manager of Heilongjiang Jiu San Grease Co., Ltd. told reporters that most of the foreign investors in China's soybean industry are multinational grain merchants. They invest in China's soybean processing industry on the premise of selling “foreign soybeans”. These multinational grain traders operate in China's soybean processing industry or wholly-owned or shareholding, but generally do not require holding. For example, ADM acquired 30% of the shares of Huanong Group Zhanjiang Oil Factory, but obtained 70% of its raw material purchase rights. This shows that multinational grain traders do not want to use our soybean processing enterprises to make money, but do not want to take the risk of soybean processing industry. They just want to gain the right to speak of imported soybeans through equity participation. Under this circumstance, it is impossible for China's soybean enterprises to become bigger and stronger because of joint ventures with multinational companies.
At present, the control of foreign soybeans on China's soybean processing industry has made the industry's production capacity far exceed demand, and processing equipment is half idle. Large oil companies controlled by foreign capital are rapidly crowding the market. The profit margin of edible vegetable oil processing enterprises has dropped sharply, and the total profit has decreased from 2.18 billion yuan in 2003 to 370 million yuan in 2004.
It is particularly noteworthy that the low-cost expansion of multinational companies in China's soybean industry continues. At present, ADM, Cargill, Bunge and other multinational companies have submitted joint venture cooperation information to Heilongjiang Jiu San Oil, and some proposed cooperation conditions. Jiu San Grease should separate the enterprises that process domestic soybeans in the soybean production area. Once Jiu San Oil cooperates with it, more than 90% of China's soybean market will be subject to foreign countries.
It is worth noting that the processing of imported soybeans by enterprises now has the advantages of low storage cost, large batch size, settlement of settlement certificates, uniform quality, and short transportation distance. However, enterprises processing domestic soybeans have the following problems that cannot be solved by themselves:
First, the cost of working capital of soybean processing enterprises in the producing areas is high. In Heilongjiang, a soybean producing area, enterprises must produce a crop of soybeans at a time. According to the current loan interest rate, a bank interest of 70 yuan is required for processing one ton of soybeans, such as processing 2 million domestic soybeans in the year of 1993. Tons, only raw materials purchases require more than 4 billion yuan per year.
Second, the soybean processing enterprises in the production area have high storage and storage costs. In the domestic acquisition of soybeans, it is necessary to face thousands of households. The raw materials need to be packaged, transported, and stored in the factory. The cost of purchasing and storing one ton of soybeans is about 75 yuan. On the coast, the cost per ton of soybeans arriving at the workshop is less than $25.
Third, the starting line of China's soybean industry competition is on the coast, and the transportation cost of Heilongjiang soybeans to coastal areas increases by about 70 yuan per ton.
At the same time, the company's current acquisition of domestic soybeans is also facing tax problems. According to the national tax policy, “the grain processing enterprises purchase grain from farmers, and the input tax deduction rate has increased from 10% to 13%”. The radius of soybeans purchased in Heilongjiang is generally 200 kilometers, and most farmers can only hand over soybeans to factories through food distributors. However, the taxation department cannot regard grain merchants as “farmers”. If the door-to-door purchases are too expensive for thousands of households, if the soybeans of the grain collectors are unable to enjoy the national tax incentives, there is also a tax suspicion. On the coast, the import of soybean value-added tax invoices is very convenient. So, who is willing to process domestic soybeans?
-- "Soya-soybean" suppresses domestic soybeans Some soybean farmers abandoned soybeans Heilongjiang Provincial Agricultural Committee related personnel introduced, due to poor comparative benefits of soybeans, this year some areas have appeared the phenomenon of soybean farmers abandoned soybeans. It is understood that due to the price of soybeans, some farmers in Heilongjiang Province, the main soybean producing areas in China, have successively replanted corn and rice. However, there are nearly 20 million mu of soybean planting area in the northern Heilongjiang region such as Heihe and Daxing'anling. There is no substitute crop here. Yuwanhu farmers will face a severe crisis of survival.
Once China does not have enough soybean output, domestic soybean prices, daily consumption, food safety and the health of the people will be greatly threatened. As the soybean processing industry, which is the key link of the soybean industry chain, is controlled by foreign capital, it will not only severely hit the upstream planting industry, but will also make the downstream aquaculture industry difficult to escape. Soybean meal provides 60% of protein raw materials for the breeding industry. If soybeans are controlled, it will inevitably drive up the cost of downstream aquaculture, affecting the prices of urban and rural agricultural and sideline products, and the livestock industry will be subject to people. By then, the upper, middle and lower reaches of China's soybean industry will be controlled by foreign capital.
-- Experts believe that China's soybean industry should be independent of the soaring soybean processing industry as a key link in China's soybean industry chain, not only affecting the interests of more than 40 million farmers in the upstream, and the livelihood of more than 100 million employees in the soybean industry chain. It is also related to the security of China's food strategy. To this end, peasants in major soybean producing areas, farmers, soybean processing enterprises and relevant experts have unanimously called for China's soybean industry to rise and fall independently. It is imperative for relevant state departments to take effective measures as soon as possible to promote the healthy development of the soybean industry.
First, the relevant departments should take into account the national food strategy security considerations, strengthen the macro-control, jointly formulate the national soybean industry revitalization strategy, and incorporate soybean processing into the national food security emergency response system. From the national strategic planning and industrial policies, the development direction and industrial focus of the soybean processing industry will be re-adjusted. At the same time, we will strengthen the control of the total amount and rhythm of imported soybeans, and earnestly safeguard the interests of soybean processing enterprises and soybean farmers in China.
Secondly, as soon as possible, establish a non-profit China Soybean Industry Association covering soybean cultivation, processing, circulation, import and export trade, change the status of low degree of organization of soybean production, processing and trade, and improve the degree of organization of soybean industry. To enhance China's right to speak in the international soybean market.
Third, accelerate the introduction of the anti-monopoly law and comprehensively assess the impact of foreign monopoly on employment, market and industrial security. To improve the foreign M&A policy, the relevant departments shall study and formulate foreign-invested investment project-oriented policies and approval management measures, establish a multi-sector joint review mechanism, and strictly approve the approval of soybean crushing projects. At the same time, limit the entry of multinational grain merchants into the futures market.
Fourth, establish a foreign joint procurement mechanism. Form one or several soybean procurement alliances as soon as possible to regulate the quantity, rhythm and price of soybean imports; adopt a national unified bidding system for imported soybeans.
Fifth, the introduction of policies encourages domestic soybean processing enterprises to process domestic soybeans. The total amount of imports can be determined according to the proportion of domestic soybeans processed by enterprises, and subsidies or tax exemptions can be granted to enterprises that process domestic soybeans. At the same time, the grain handed over to the processing enterprises by the small and medium-sized grain traders is regarded as the sales of farmers, and the enterprises are allowed to deduct the input tax.
Sixth, implement the domestic non-GM soybean production support policy and establish a non-GMO soybean protection zone. Give full play to the advantages of non-GMO and high protein in domestic soybeans, adopt a product differentiation strategy, and support domestic soybean production from producer subsidies and market prices.