EDITORIAL: China Driving Change in Soybean Market

China is changing the world in the soybean market according to the European president of the American Soybean Association.

Speaking at EuroTier in Hanover, Mark Andersen, American Soybean Association International Marketing Regional Director for Europe, Turkey and Russia, said that four years ago Europe had the largest consumption followed by the US and China.

Now, however, China has taken the lead in consumption.

"It has had a major impact on what is being consumed and what is being grown," he said.

Also at EuroTier, organic dairy farmers have been given advice on the use of continuous grazing on pasture to reduce costs and boost profits.

Stephan Schöltz from the organic organisation Naturland said that numerous studies in Switzerland and in Germany have shown that production costs can be reduced while maintaining substantial milk yields and maintaining animal health.

He said that grazing systems in counties with large areas of pastureland such as Ireland and New Zealand have demonstrated that the systems are sustainable because they also have the lowest production costs.

In Germany, farmers wishing to change to a continuous grazing system should reduce the amount of concentrate given to the cattle gradually and ensure a targeted reduction.

However, Mr Schöltz said that when farmers are changing systems from traditional intensive methods using high amounts of concentrate in the feed, the process has to be monitored closely.

In the US, although milk prices have increased over the summer, they have not kept pace with grain commodity price changes. The result has been in negative profit margins for producers.

Iowa University's Kristen Schulte said that dairy product demand and disappearance has remained strong for the first half of 2012 helping to sustain higher milk prices than expected.

Projected milk prices are expected to remain strong compared to the range of prices over the past three years.

But there is room for upward movement due to decreasing US cow inventory, sustained global milk production, and stable increases in global dairy product demand.