Trade war drives China to seek ways of cutting soymeal in animal feed

By Hallie Gu and Josephine Mason

BEIJING (Reuters) - China's state planner has discussed with top feed makers ways of reducing soymeal levels in animal feed, sources briefed on the matter said on Thursday, as Beijing scrambles to help its vast farm sector cope with a protracted trade war with Washington.

The National Development and Reform Commission (NDRC) called the companies to a meeting in the Chinese capital on Wednesday, the two sources said. The discussions also looked at how to secure alternative protein-rich ingredients, they added.

Representatives of New Hope Group, Beijing Dabeinong Technology Group Co Ltd, CP Group and Hefeng Group attended the meeting, one of the sources said.

The second source said the government was drafting new industry guidelines for animal feed and may cut recommended protein levels.

The proposal may be released in August, he added.

The sources declined to be identified as they were not authorised to speak to the media.

The news illustrates the government's growing concerns that the threat hefty import tariffs pose to U.S. soybean supplies will limit availability of a critical protein used in livestock feeds and so drive up meal prices.

The NDRC and CP Group did not respond to requests for comment. Calls to Dabeinong and Hefeng went unanswered and New Hope declined to comment.

(Reporting by Hallie Gu and Josephine Mason in BEIJING; additional reporting by Naveen Thukral in SINGAPORE; Editing by Clarence Fernandez)