China Expands Vegetable Oil Exports as Domestic Consumption Weakens

China Expands Vegetable Oil Exports as Domestic Consumption Weakens

CMB News | Oils & Oilseeds | March 2026

China is increasing its presence in the global vegetable oil market as domestic consumption weakens and processing capacity continues to expand. According to Zhang Liwei, senior economist at the National Food and Strategic Reserves Administration data center, vegetable oil exports from China rose significantly in 2025 after remaining stable for many years.

Speaking at the Chinese Grains & Oils Congress 2026 in Shanghai on March 5, Zhang explained that China’s vegetable oil exports had historically hovered around 100,000 tonnes annually, but increased noticeably in 2025 due to several structural factors.

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Lower Domestic Consumption Drives Export Growth

One key factor behind the export expansion is declining domestic consumption of vegetable oils, which has created additional supply for international markets.

At the same time, low soybean oil prices and competitive pricing from Chinese processors have improved the export position of Chinese vegetable oil in several Asian markets.

China’s oilseed processing sector has grown rapidly in recent years and now plays a dominant role in the global oilseed industry.

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China Controls a Quarter of Global Oilseed Processing

According to Zhang Liwei, China currently accounts for roughly 25% of global oilseed processing capacity.

For the 2025/26 marketing year, China’s oilseed processing volume is expected to exceed:

146 million tonnes

Total installed oilseed crushing capacity in the country is even higher, reaching more than 200 million tonnes annually, with soybean processing representing over 70% of that capacity.

This massive processing infrastructure has made China one of the most important players in the global vegetable oil supply chain.

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Record Oilseed Harvests Boost Domestic Supply

Government support programs aimed at strengthening domestic oilseed production have also contributed to the rising export potential.

China has recorded record oilseed harvests for four consecutive years, increasing the availability of raw materials for processing and export.

Nevertheless, the country remains heavily dependent on imports of oilseeds and vegetable oils.

Each year China imports approximately:

Product	Annual Imports
Oilseeds	over 100 million tonnes
Vegetable oils	around 10 million tonnes
Protein feed	more than 5 million tonnes

This highlights China’s unique position as both a major importer and an increasingly relevant exporter in global vegetable oil markets.

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Kazakhstan Emerging as Strategic Supplier

Zhang Liwei also highlighted the growing role of Kazakhstan in China’s oilseed supply chain.

In recent years, Kazakhstan has significantly expanded oilseed production, attracting investment from Chinese companies in crushing plants and processing infrastructure.

As a result, imports of both oilseeds and vegetable oil products from Kazakhstan into China are expected to increase further in the coming years.

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CMB Market Commentary

China’s expanding vegetable oil exports could gradually reshape regional trade flows in Asia.

Traditionally, China has been primarily viewed as a large importer of vegetable oils, particularly palm oil, soybean oil, and rapeseed oil. However, growing processing capacity and weaker domestic consumption are now creating periodic export surpluses.

For global markets, this development could have several implications:

• Increased competition for Southeast Asian exporters
• Additional soybean oil supply in Asian markets
• Potential pressure on regional vegetable oil prices

At the same time, China’s continued dependence on massive oilseed imports ensures that the country will remain a central driver of global oilseed trade, particularly for soybeans originating from Brazil and the United States.

In this context, China’s role is evolving from pure importer to increasingly influential processor and exporter within the global vegetable oil value chain.