China's soybean crushing sector faces overcapacity, COFCO official says

China's soybean ‌crushing sector faces ​significant overcapacity, Lv Xiuping, a Communist Party committee member and chief accountant ‌at state-run COFCO Oils & Fats, said at the 19th China International Oils & Oilseeds Conference on Wednesday. Excluding long-term idle capacity, China's ‌annual soybean crushing capacity is up 19.8% in the ‌past decade, but average operating rates have held between 55% and 70%, showing persistent overcapacity that has weighed on the industry's profitability, Lv said.

• ⁠Lv ​projects China's ⁠daily crushing capacity for imported soybeans will exceed 520,000 metric tons ⁠by the end of the year, based on current plans for ​new construction and expansion projects • Domestic soymeal production is ⁠projected to reach 82.27 million metric tons in 2025/26, up 4.9% ⁠year ​on year

• From a broader domestic perspective, total per-capita animal protein intake is gradually peaking, she said • ⁠A declining population, an aging demographic, shifts in protein consumption patterns ⁠and ⁠the adoption of low-protein feed technologies suggest China's soymeal consumption may have plateaued, she added