Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Russia has affirmed the safety of its non-genetically modified (non-GMO) soybean exports to China, a Russian government source told Reuters on Saturday, even as Beijing recently concluded a significant soybean purchasing agreement with the United States. This assurance comes as Russian Agriculture Minister Oksana Lut visited China this week to discuss expanding agricultural trade, positioning Russia as a key supplier of non-GMO products amidst China’s diverse import needs.
Russia’s Non-GMO Niche
Russia, which ranks a distant fifth among soybean exporters to China, exclusively supplies non-GMO soybeans. These are crucial for producing various food items such as tofu, soy milk, and soy sauce in China.
The recent deal between China and the United States, facilitated by President Donald Trump and Chinese President Xi Jinping, commits China to purchasing 12 million tons of American soybeans during the current season. The United States primarily provides genetically modified soybeans, which are typically used for animal feed.
Ministerial Talks and Export Ambitions
Russian Agriculture Minister Oksana Lut met with her Chinese counterpart Han Jun in Beijing this week. Her visit aimed to expand Russia’s agricultural exports to China, despite the new U.S.-China soybean agreement.
A Russian government source, who requested anonymity, expressed confidence in the market, stating, “I think there is no threat to our non-GMO soybean exports. We are the only ones in the world growing it.”
Record Harvest and Market Strategy
The IKAR consultancy estimates Russia’s non-GMO soybean exports to China could reach up to 0.8 million tons this season. Dmitry Rylko of IKAR projects Russia’s total soybean exports could reach one million tons, following an expected record harvest of up to 9 million metric tons this year.
Russia banned GMO farming in 2016, a strategic move to capitalize on the expanding global non-GMO food market. Fortune Business Insights projects this market to grow from $895 billion in 2025 to $2 trillion by 2032.
Broader Agricultural Trade
Beyond soybeans, Minister Lut reported a 10% increase in Russian agricultural exports to China during January–September, driven by products like sunflower and rapeseed oils, crustaceans, frozen fish, and meat. Russia is also seeking China’s approval for its winter wheat, a major agricultural export commodity, to access the Chinese market, though negotiations have yet to yield progress.
Minister Lut emphasized the quality of Russian products, stating, “Our products meet the strictest standards of food quality and safety. I am confident they will help diversify China’s food market and meet growing consumer demand.”
Outlook on China-Russia Agricultural Ties
Despite China’s substantial soybean deal with the United States, Russia remains confident in its unique position as a non-GMO soybean supplier. This focus, coupled with broader efforts to expand other agricultural exports and secure market access for key commodities like winter wheat, underscores Russia’s ongoing strategy to strengthen its agricultural trade relationship with China.
