China moves to cut food oil overcapacity

Concerns over an overcapacity of food oil has led China’s government to ban the construction of soybean crushing facilities, the Financial Times reported. "We will not approve the building of new crushers… because output already exceeds demand and repeated construction has become a serious problem," the paper quoted a National Development and Reform Commission official as saying. In addition to reducing overcapacity, the ban is seen as an attempt to limit the market share of foreign companies in food oil. Overseas players including Wilmar International, Cargill and Bunge currently hold about a 50% market share in China’s food oil business.