Building Busin ess in Asia China Market Research Report Project SEMA Workstep 2: Market Research Report November 24, 2016 Building Busin ess in Asia Contents Terms .................................................................................................................................................................................................................. 4 Executive Summary ............................................................................................................................................................................................ 5 1. Global Soybean Market Overview .................................................................................................................................................................. 8 2. China Soybean Market Overview ................................................................................................................................................................... 9 3. Domestic Soybean Production ...................................................................................................................................................................... 11 3.1. China Domestic Soybean Yields and Growing Areas ........................................................................................................................ 11 3.2. Forecast ............................................................................................................................................................................................... 13 4. China Soybean Trade Analysis ..................................................................................................................................................................... 14 4.1. Soybean Imports Analysis .................................................................................................................................................................. 16 4.1.1. Top 20 Soybean Importers in China ............................................................................................................................................. 18 4.1.2. Identified Non-GM Soybean Importers in China ......................................................................................................................... 18 4.2. Soybean Exports Analysis .................................................................................................................................................................. 20 5. China Domestic Food Market and Demand .................................................................................................................................................. 21 5.1. China Soy Food Market Trends .......................................................................................................................................................... 21 5.2. Soybean Food Market Uses ................................................................................................................................................................ 22 5.3. Top Soybean Producers in China ........................................................................................................................................................ 24 6. Soybean Price Analysis ................................................................................................................................................................................. 26 6.1. National Bureau of Statistics – Soybean Market Prices ..................................................................................................................... 26 6.2. Dalian Commodity Exchange Center ................................................................................................................................................. 28 6.3. Recent State Sales ............................................................................................................................................................................... 29 6.4. Analysis of Influencing Factors .......................................................................................................................................................... 29 7. Supply Chain & Distribution ........................................................................................................................................................................ 30 7.1. Market Structure ................................................................................................................................................................................. 30 7.2. Tariffs and Duties ............................................................................................................................................................................... 31 7.3. Standard Shipping Requirements ........................................................................................................................................................ 31 7.3.1. Bulk Shipment: ............................................................................................................................................................................. 31 7.3.2. Containerized Shipment: ............................................................................................................................................................... 32 8. Import Regulations and Requirements .......................................................................................................................................................... 32 8.1. Current Regulations ............................................................................................................................................................................ 32 8.1.1. GMO Content Allowance ............................................................................................................................................................. 32 8.1.2. GMO Product certification ........................................................................................................................................................... 33 8.1.3. Labelling requirements ................................................................................................................................................................. 33 8.1.4. Phytosanitary requirements ........................................................................................................................................................... 33 8.1.5. Maximum Residue Limits ............................................................................................................................................................. 33 8.1.6. Other requirements ........................................................................................................................................................................ 34 8.2. Seed Law of the People's Republic of China ...................................................................................................................................... 34 8.2.1. Chapter VII Seed Imports and Exports, and Foreign Cooperation .............................................................................................. 34 8.3. Major Ports of Entry ........................................................................................................................................................................... 35 9. Conclusions and Recommendations ............................................................................................................................................................. 35 Soybean Industry Market Research Report Soy Canada - 1607-130 Albert St. Ottawa, ON Page | 2 Building Busin ess in Asia 9.1. SWOT Analysis .................................................................................................................................................................................. 36 9.1.1. Strengths ....................................................................................................................................................................................... 36 9.1.2. Weakness ...................................................................................................................................................................................... 36 9.1.3. Opportunities ................................................................................................................................................................................. 36 9.1.4. Threats ........................................................................................................................................................................................... 36 9.2. Next Steps ........................................................................................................................................................................................... 37 10. Appendix ..................................................................................................................................................................................................... 40 10.1. Key Statistics for the Chinese Soybean Industry in 2015/16 .............................................................................................................. 40 10.2. Data Source A – China Soybean Supply/Consumption .....................................................................................................................