Aim/Purpose: This research identifies China’s agricultural commodities demand on soy and compares the comparative advantage, competitiveness of world soy exporters.
Background: The world’s largest agricultural commodities importer-China had bought 10.7 % of world agricultural commodities (US$1,167.2 billion) during year 2017. Studying China’s demand in order to formulate export strategies is crucial especially for BRIC countries.
Methodology: Reveal Comparative advantage (RCA), Comparative Advantage above Average (CAaA) and Export Competitive Advantage (XCA) were used in this study.
Findings: Analysis shows that Brazil, USA, Argentina, Canada, Paraguay, Uruguay and Ukraine who supply more than 97% of world soy export have better comparative advantage and competitiveness over other soy exporters in the world. Russia and Netherlands are picking up with offering lower export price.
Impact on Society: Due to US-China Trade dispute, China has switched soy import and purchase from the US to Brazil. That has caused US$3 billion wealth loss for both countries.