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China’s demand for high quality soybeans are steadily increasing. In 2010, China was responsible for 58% of the world’s soybean export market. With China’s constant decline in soybean production and the economy growing at a rate of 8-10% per year, it is evitable that soybean exports will continue to rise. Soybeans are primarily used as feed for livestock, manufacturing oils, and in everyday cooking. Soybeans, especially vegetable oil, are key ingredients in the average Chinese diet, making them a necessity to Chinese lifestyle. It is expected that by 2020, the demand for soybeans in China’s market will rise to approximately 88 metric tons per year. This major increase will give Canadian soybean farmers the opportunity to export high volumes overseas as well as promote our high quality Canadian agri-food products.
Flaxseed and flax oil are an essential part of Chinese diet and lifestyle. From the 2011 season up to April 2012, China imported 85,700 tonnes of flax, an increase in 35,000 tonnes in comparison to the entire 2010-11 season. While China produces significant amounts of flaxseed, it does not play a role in the world trade. Its production is used exclusively for animal feed, domestic consumption, and oil production. . Over the last few years, the country has obtained more oilseeds and meal from outside markets, especially from Canada. Chinese farmers and oilseed buyers are desperate for flaxseed to maintain their businesses, while the rest of China depends on this crucial product as part of their daily diet. With China’s economy growing at a rate of 8-10% annually, Canadian flaxseed producers are sure to develop a long-term, fruitful exporting relationship with them. This increase in demand has resulted in stronger prices for flax growers in Canada, with new crop contracts reaching $14/bushel (a $2 increase in comparison to this winter).