Russian Agriculture Minister Dmitry Patrushev made an offer to China to set up joint soy processing production capacity in Russia, Reuters reported. China is diversifying its soybean imports since it is currently in the process of cutting all soybean imports from the US, its largest soybean supplier.
Russian Agriculture Minister Dmitry Patrushev proposed setting up joint soy processing production with China on Russian soil as he met his Chinese counterpart for talks last month. Reuters reported. Patrushev said Chinese investment in joint production would help Russia increase soy supplies to the Chinese market, the ministry said in a statement.
China is seeking to diversify its imports of farm goods after an escalating trade spate with the U.S. prompted hefty duties on purchases of American soybeans, spurring concerns about a looming shortage. China has purchased record amounts of soybeans from Russia in recent months amid trade tensions with the U.S. The world’s biggest soybean importer, China has nearly tripled its imports from Russia, according to Bloomberg. While Russia’s soybean production makes up less than 1 percent of the amount China imports, the size of soybean plantings in eastern Russia could reportedly expand up to 20 percent in the next two to three years. Russia has made 1 million hectares (2.5 million acres) of arable land available to foreign investors. That could be boon for Beijing as it struggles with limited supplies of soybeans. JBA Holdings, a joint venture between companies including Heilongjiang Agriculture Co. and Joyvio Group, will invest $100 million over three years to build a soybean crusher and grain port in Russia amid a push by Chinese firms to diversify their sources of crop supplies.