The National Development and Reform Commission (NDRC) says it favors establishing a national soybean reserve, but the timing of the move is not yet clear, according to a China Business News report today. If approved, the reserves would amount to around 2 million tons. A soybean reserve would protect soybean farmers and processing industries from financial losses stemming from price fluctuations.

The exact time for establishing the reserve has not yet been decided, and the plan has to be approved by the State Council, He Yanli, deputy director of the NDRC Department of Industrial Policies, told the 2008 China International Conference of Seed Crushers.

“This year has been a replay of black 2004 for soybeans, perhaps even worse. In 2004, soybean prices decreased by 40 percent in four months; this year it was 50 percent in three months.” Cheng Guoqiang, a researcher at the Development Research Center of the State Council, told the conference.

80 percent of the soybean oil industry is controlled by foreign companies, another reason for establishing a national soybean reserve.

For more details, please read the complete story in Chinese:

(http://www.china-cbn.com/s/n/000002/20081021/020000091402.shtml)

(China.org.cn by Wang Wei, October 21, 2008)