Analysis Of Soybean Crisis In China Based On The Theory Of Comparative Advantage

As one of the first opening agricultural products, soybean industry has gained greatly development in recent years. But with the rapid growth of soybean import, soybean industry begins to face crisis. According to information provided by the Chinese oil network show that China soybean imports exceeded 10 million tons at the first time in 2000. The import amount was up to 42 million tons in 2009, equivalent to three times domestic production. The soybean became the largest quantity of import of grain and oil products. As the scale production of overseas agriculture, leading to import soybean cost is lower than domestic soybean. The competitiveness of its downstream products has the absolutely advantage to domestic soybean. The Northeast soybean crushing industries that depend on domestic soybean survival are difficult. At the same time, four major multinational grain industries began to enter China soybean crushing market and established factories along coasts, further stimulating the increase in soybean import. These factors led to the Northeast soybean planted area condition deterioration and original relatively closed small-scale production pattern face difficulties. Base on this background, this study focus on the China soybean crisis and reasons, which has important practical significance.This paper from the market supply and demand analyze soybean crisis. From China and the world soybean production and trade analyzing the supply and demand structure of China soybean market to find out the reasons for causing the crisis of China soybean. Base on the analysis, expecting to find out some value suggestions on how to ease China soybean crisis. This study is divided into six parts. The first part is the introduction, to review related literature and theory. We can know that China soybean is in crisis by analyzing the importance of soybean, the performance of China soybean crisis, the conditions of world and China soybean trade in the second part. China soybean market supply and demand are analyzed in the fourth part. Supply structure of China soybean market is analyzed from the two aspects of domestic soybean production area structure and abroad import structure. Demand structure of China soybean market is analyzed from the two aspects of domestic soybean consumption structure and soybean export country structure. The fifth part is the comparative advantage analysis of China soybean industry. First, the cost -benefit between soybean and corn are comparative analyzed. It is shown that the per acre profit rate of soybean is higher than that of corn almost every year. But the result don't match the reality that corn planted areas are far larger than soybean planted areas. It is revealed that peasants are more concerned about cash income by comparative analyzing both cash income per acre. Second, mainly from soybean cost, soybean yield and trade competitiveness the three aspects to analyze the advantage between domestic and abroad soybean. The results show that China soybean don't have advantage compared with abroad soybean. The reasons caused China soybean crisis are analyzed in the sixth part. Supply side: the high cost but low yields of soybean and the attention to soybean planted isn't enough; the quality of domestic soybean needs improving. Demand side: the rapid growth of crushing soybean needs import soybean to meet; Policy side: domestic soybean import trade mechanism is imperfect, lack of long-term subsidy mechanism. The research support for soybean is not enough. Foreign policy also has certain impact on domestic soybean industry. Based on the analysis above, suggestions on how to ease China soybean crisis have been put forward from the aspects of supply, trade and policy.