Ministry of Agriculture and Rural Affairs: Establish national-level soybean seed production bases to secure pricing power and influence in the non‑GMO soybean market.

Letter Responding to Proposal No. 3885 (No. 323 in the Agriculture and Water Conservancy Category) of the Third Session of the 13th National Committee of the Chinese People’s Political Consultative Conference

Committee Member Zhao Yusen:

We have received your proposal on revitalizing and developing China’s high-quality, non-GMO soybean industry. After consultation with the Ministry of Science and Technology, the China Securities Regulatory Commission, and the National Food and Strategic Reserves Administration, we hereby provide the following response.

In recent years, China has accelerated the implementation of its Soybean Revitalization Plan, focusing on the upstream end to drive innovation in soybean varieties, expanding downstream channels to support brand development among soybean enterprises, and stabilizing leverage to optimize soybean trade and distribution. These efforts have effectively bolstered the steady improvement of China’s soybean production volume, quality, market influence, and competitiveness.

01 On Variety Innovation and the Development of National-Level Soybean Seed Production Bases

Varietal innovation is key to revitalizing the soybean sector. During the 13th Five-Year Plan period, the Ministry of Science and Technology, through the National Key R&D Program’s “Breeding of Seven Major Crops” special project, launched initiatives such as “Technologies for Harnessing Heterosis in Soybeans and Development of High‑Heterosis Hybrids,” “Breeding of New High‑Quality, High‑Yielding, Broadly Adapted Soybean Varieties for Northern China,” and “Breeding of New High‑Quality, High‑Yielding, Broadly Adapted Soybean Varieties for the Huanghuaihai Region.” These efforts established a database to conduct genome-wide association studies on soybeans, developed practical molecular marker–assisted techniques for soybean germplasm identification, created novel genetic resources, and built a genotypic and phenotypic database encompassing over 2,000 soybean accessions. In response to the current state of soybean industry development and technological needs, our ministry allocates an annual budget of 38.2 million yuan to support experts in conducting research on soybean genetic improvement, pest and disease management, cultivation, mechanization, and processing, while also carrying out technology demonstrations and training programs to facilitate the rapid application and commercialization of research outcomes. Since 2014, we have initiated a joint effort to develop superior soybean varieties, establishing a platform that integrates industry, academia, and research to accelerate the approval and dissemination of new cultivars. To date, 247 new soybean varieties—characterized by high oil content, high protein levels, and high yields—have been bred nationwide, including Heihe 43, Qihuang 34, Henong 76, Heike 60, Zhonghuang 301, and Zheng 1307, thereby achieving continuous variety renewal. Notably, the major new high‑oil, high‑yield variety Henong 76 boasts a crude protein content of 40.47% and a crude fat content of 20.93%, with cumulative adoption across 3.5 million mu of farmland.

Meanwhile, our ministry, in collaboration with the Ministry of Finance, has vigorously promoted the development of high‑quality soybean seed‑production bases. Through national reward funds for major seed‑producing counties, eight counties (banners and farms)—including Wudalianchi, Beian, Bayan, Zhaoguang, Jianshan, Ewenki, Morida Wa Autonomous Banner, and Jiaxiang—in provinces and autonomous regions such as Heilongjiang, Inner Mongolia, and Shandong—receive annual awards of RMB 10 million each to support land leveling, the construction of water, electricity, and road networks, and the upgrading of ancillary facilities and equipment, thereby enhancing storage, drying, and processing capacities. At present, seed production is increasingly concentrated in these leading bases; in the eight designated areas, the mechanization rate for soybean seed production approaches 100%, supplying more than 60% of the nation’s soybean seeds.
 

Going forward, our ministry will continue to work with relevant departments to strengthen support for the soybean industry, intensifying efforts in the breeding and development of new high-yielding, high-quality, stress‑tolerant soybean varieties suited to mechanized cultivation, as well as in the dissemination of related technologies. During the 14th Five-Year Plan period, we will leverage major counties that host Heilongjiang’s superior soybean seed‑production bases to establish national‑level soybean seed‑production hubs. We will also press ahead with collaborative research on elite soybean varieties, aiming to boost both yield and quality of domestically produced soybeans and enhance their competitiveness.

02 On Building the Soybean Brand

In recent years, the National Food and Strategic Reserves Administration has accelerated innovation, transformation, and upgrading in the grain sector—including soybeans—while enhancing quality and efficiency to promote high‑quality, specialized, and branded development. It has supported major grain‑producing regions in cultivating grain industry clusters at the county level, striving to keep the entire industrial chain within those counties. By emphasizing the central role of enterprises, deepening industry–university–research collaboration, and disseminating key, cross‑cutting technologies, the Administration has injected new momentum into the development of the grain industry.

In 2017, our ministry launched the initiative to establish and recognize areas of distinctive agricultural product advantages, emphasizing the principle of “building a strong regional public brand for each designated area.” Heilongjiang Province’s Hailun soybeans were selected as part of the first batch of China’s Characteristic Agricultural Product Advantageous Areas. In 2019, the China Agricultural Products Market Association conducted the “China Agricultural Brand Directory 2019: Call for Regional Public Brands of Agricultural Products,” under which two brands—Hailun soybeans and Jiushan soybeans from Heilongjiang Province—were shortlisted. Furthermore, our ministry has actively leveraged platforms such as trade fairs and supply‑demand matchmaking events to continuously expand sales channels and support the marketing of soybean brands. For example, at the 17th China International Agricultural Fair, Hailun soybeans were prominently promoted; meanwhile, media outlets including the Farmers’ Daily, Rural Magazine, and the National Agricultural Film and Television Center were mobilized to publicize these soybean brands, tell their stories, and enhance brand awareness and influence.
 

Going forward, our ministry will promote the development of soybean industry clusters, strengthen preferential policies for the soybean sector, and continue to vigorously advance agricultural branding efforts, thereby enhancing the visibility of a number of soybean‑related brands and expanding their influence.

03 On Strengthening the Utilization of Financial Instruments

In 2002, the Dalian Commodity Exchange launched the Yellow Soybean No. 1 futures contract, with domestically produced non‑genetically modified soybeans as its underlying asset. Since its launch, Yellow Soybean No. 1 futures have operated smoothly and fulfilled their intended functions effectively. In recent years, the China Securities Regulatory Commission has continuously refined and improved the contract rules for Yellow Soybean No. 1, implementing a series of measures to enhance the contract’s role in supporting the market. First, the “Insurance + Futures” model has been actively promoted to safeguard farmers’ incomes. This approach prioritizes income insurance, supplemented by price insurance and supported by basis‑price grain procurement, thereby providing more robust protection. On the one hand, income insurance covers both price and yield risks, delivering stronger outcomes; on the other, leading enterprises are engaged in basis‑price grain purchases, helping farmers expand sales channels and further mitigate price‑fluctuation risks. Second, soybean processing companies have been guided to utilize futures for risk management. Through corporate training programs, industry‑specific seminars, and tailored initiatives such as the “Corporate Risk Management Plan,” managers in the soybean processing sector have deepened their understanding of futures derivatives. Additionally, by providing financial support for pilot projects, the Commission has created practical opportunities for companies to employ Yellow Soybean No. 1 futures, boosting their willingness to leverage the futures market for risk mitigation. Third, efforts have been made to secure pricing power and voice in the non‑GMO soybean market. At present, no global pricing center exists for non‑GMO soybeans. The China Securities Regulatory Commission continues to refine the business rules governing the Yellow Soybean No. 1 futures contract, aligning them more closely with actual spot‑market needs, advancing research into opening the contract to international participation, and enhancing its global influence. Fourth, the development of delivery warehouses in major soybean‑producing regions has been accelerated. To reduce delivery costs and better accommodate prevailing spot‑trade practices, delivery facilities are typically located in key production and consumption areas. Currently, Yellow Soybean No. 1 has established a delivery network centered on Harbin—the benchmark delivery location—covering Heilongjiang, Jilin, Liaoning, and Inner Mongolia. In the main producing areas of Heilongjiang and Inner Mongolia, 15 Yellow Soybean No. 1 delivery warehouses have been set up, accounting for 71% of all such facilities and effectively meeting delivery requirements. Looking ahead, the China Securities Regulatory Commission will continue to improve the soybean futures market mechanism, further enhance the functionality of Yellow Soybean No. 1 futures, and strategically locate delivery warehouses to better enable the futures market to serve agriculture, rural areas, and farmers, thereby strengthening China’s capacity for risk management in the soybean industry.

Ministry of Agriculture and Rural Affairs

September 2nd

Source: Ministry of Agriculture and Rural Affairs