Source: POLITICO'S MORNING AGRICULTURE, 8/3/18

The average pig business in China is facing an increase of up to $5.30 for raising one hog because of Beijing's decision earlier this month to levy a 25 percent retaliatory tariff on U.S. soybeans. But farmers have adapted by changing the animals' diets and looking for alternatives to soybean meal, which normally accounts for about 20 percent of hog feed, reports Mandy Zuo for the South China Morning Post.

"We won't die ... but our profits will be somewhat affected," said Li Xueya, head of the purchasing department of Xinda Muye, a farming company in the central province of Henan.

Long-term effects: China is the world's largest pork producer and more than 80 percent of its soybeans come from overseas — a third of them from the U.S. last year. By using countermeasures such as Li's, increasing imports from other countries, encouraging domestic planting of the crop, and other administrative interventions, China might help its farmers absorb the shock, analysts said. If more farmers start turning to other feed, it could permanently lock out American soybean farmers from the market opportunity.

Excess supplies: China also imported more soybeans than it needed last year, resulting in a 32 million ton surplus — close to the amount imported from the U.S. Brazil also is replacing the U.S. as a top supplier of the crop, and imports from Canada and Russia are also rising.