Calculating the Value-Added Ledger Across the Entire Supply Chain of Domestic Soybeans

Deep News06:22

The latest Government Work Report emphasizes the importance of maintaining stable grain production and specifically highlights the need to consolidate and enhance soybean production capacity. By tracing the value appreciation of a single soybean, we can observe how domestic soybeans are achieving a significant leap in value.

In Heilongjiang's Hailun district, a major soybean-producing area, farmer Ma Hongyan is already planning to sell his harvested soybeans shortly after the Spring Festival festivities. Last year, his 9 hectares of soybeans yielded the highest output in recent years, coupled with favorable prices. Sitting on his heated kang bed, Ma meticulously calculated his increased earnings for the reporter. Despite receiving several price quotes from grain brokers over the phone, he decided to visit local purchasing stations to check prices in person. After preparing samples, he headed straight to the grain collection points.

Increased yield has directly led to higher income. Ma explained that beyond boosting production, selecting high-quality seed varieties is crucial for farmers' profitability. At the purchasing stations, protein content analyzers have become standard equipment. Ma submitted his sample, and the results were available in under a minute. After visiting several stations, the highest offer he received was 2.45 yuan per jin, exceeding his initial expectations by 0.05 yuan per jin and adding an extra 350 yuan per hectare. Satisfied with the price, Ma decided to sell his stock immediately.

China's soybean market has developed a clear segmentation based on variety: high-oil soybeans, with an oil content exceeding 20%, are primarily used for oil pressing and meal production; high-protein soybeans, containing over 40% protein, serve as the core raw material for soybean product processing. At the traders' collection points, trucks loaded with soybeans are prepared for shipment to processing plants across the country. Traders note that in response to market demand shifts, they have transitioned from mixed purchasing and selling to precise classification.

The meticulous profit calculations by farmers and traders directly reflect the market principle of "higher quality commands better prices." In a seed company laboratory in Harbin, Heilongjiang, researchers are utilizing biotechnologies like molecular markers, gene editing, and whole-genome selection to concentrate desirable traits—high protein, high oil, and disease resistance—into single seeds. Developers state that breeding programs must actively adapt to market demands, considering the overall "comprehensive account."

At the end of the supply chain, traditional processing enterprises are accelerating their transformation. A soybean oil processing plant in Heilongjiang is conducting experiments on protein isolation. The plant manager calculated the "efficiency account" for deep processing: one ton of soybeans undergoing primary processing yields approximately 0.18 tons of oil and 0.78 tons of meal, with a total output value of about 4,100 yuan. However, through deep processing, the value of soybean protein products alone can exceed 10,000 yuan per ton, increasing profitability nearly threefold.

Strengthening soybean production capacity is a key focus for National People's Congress representative Yu Jia'ao. She believes that promoting high-quality development of domestic soybeans first requires leveraging national soybean breeding centers, collaborating with universities and research institutes to tackle key challenges, and expanding the scale of superior seed propagation to solidify the genetic foundation. Representative Yu advocates for implementing a soybean protein enhancement initiative, particularly by establishing special funds for the development of the domestic soybean plant protein industry. This would support core technological breakthroughs in deep processing, such as functional modification of soybean protein, and explore new applications in pharmaceuticals, food, and functional products.

The goal is to not only expand but also strengthen the domestic soybean industry. Data shows that China's soybean output reached 20.91 million tons in 2025, a 1.3% increase from the previous year. The national soybean planting area stood at 154 million mu, maintaining stability above 150 million mu for the fourth consecutive year. From farmers benefiting from "premium prices for premium quality" to technological breakthroughs in breeding innovation, and the added value from deep processing, the competitiveness of domestic soybeans is steadily rising, as detailed in this "value-added ledger across the entire industrial chain."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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