U.S.-China soybean tussle reveals Beijing’s food security strategy. Goldman Sachs on how to invest
China's focus on food security mirrors efforts for self-sufficiency in chips and energy, Goldman Sachs said.
TL;DR
- China's domestic soybean production is increasing due to policy support, mirroring efforts in energy and chips security.
- Goldman Sachs analysts predict China's corn and soybean yield could reach 80-85% of the U.S. level by 2035, while reducing soybean content in animal feed.
- China has stabilized its reliance on grain imports for the first time in two decades.
- Public sector spending on agricultural R&D in China has increased fivefold compared to two decades ago.
- Goldman Sachs recommends stocks like Dabeinong (biotech seeds), First Tractor (agricultural machinery), and Yunnan Yuntianhua (fertilizer producers).