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China Agricultural Newsletter - June 2013

The China Agricultural Update is provided by the Iowa Economic Development Authority's (IEDA) office in China, which is operated by Phoenix Consulting LLC. Ms. Wendy Zhang, IEDA's trade specialist in the China office, can provide customized market research information for your company. For more information on how to utilize the services offered by IEDA's Beijing Office, please contact Mr. Joseph Rude at joseph.rude@iowa.gov

Laws, Regulations and Policies

China issues economic reform guidelines

 China's top planning agency has today released key economic reforms for the year ahead. High on the agenda are medical insurance, public housing and a crack down on anti-competitive practices.

China gives approval to GM soybeans

 China's agricultural authorities issued biosafety certificates to three new overseas varieties of genetically modified soybeans on Thursday, allowing them to be imported as raw materials for domestic processing.

Chinese gov't grants support subsidies for poultry industry

 The government has granted subsidies of 300 million yuan (48.54 million U.S. dollars) to prop up the poultry sector as it struggles in the wake of the H7N9 bird flu virus, the Ministry of Finance said on Friday.

China tightens supervision over dairy products

 China's dairy industry has seen several serious scandals that have created widespread public concern over the safety and quality of its products. In response, authorities have now launched a stricter supervision process for dairy goods.

China to ban chemical-laden health food

 BEIJING - China's food and drug watchdog on Friday announced that 13 types of health food will be banned, as they have been found to contain undesirable chemicals.

Revisions to food safety laws 'urgently' needed

 China is considering revisions to its Food Safety Law, according to its top food and drug regulator. An official from China Food and Drug Administration, who preferred to remain anonymous, told China Daily on Friday that the administration has gathered opinions from experts on revising the Food Safety Law. However, no specific timetable was revealed.

China conducts soil pollution survey

The government plans to conduct a nationwide soil pollution survey, the Ministry of Land and Resources said Wednesday.

Industry and Business Watch

China's farm produce prices retreat slightly

 BEIJING, June 25 (Xinhua) - The prices of farm produce in 36 major Chinese cities slightly retreated last week on rising supplies, according to new official data.

China to maintain food self-sufficiency: report

 China will remain self-sufficient in the main food crops, though output will slow in the next decade under increasing resource and rural labor constraints, according to a new forecast by two international agencies.

China grain needs to grow through 2014

 China's grain requirement for feeding to farm livestock and aquaculture between October 2013 and September 2014 is set to grow by another 1.6 percent after an increase of nearly 2 percent in the current crop marketing year, according to information presented to the latest annual conference of the International Grains Council.

Imported strains diversify China's crop output

 BEIJING, June 7 (Xinhua) - An international agricultural organization has provided China with nearly 50,000 wheat, corn, potato, and rice strains, greatly boosting crop diversity in China.

China's wheat harvest totals 18.27 million hectares

 As of June 16, harvest of wheat planted in China last winter was 80% complete, with 274 million mu (18.27 million hectares) of wheat harvested. 

China's soy imports expected to soar 63% in June

 China's soy imports are expected to rise 63% to a record 8.32 million tonnes in June, as compared to May, according to data from China’s Ministry of Commerce. 

China expects increase in oilseeds, coarse grains, dairy imports in 10 years

 Over the next 10 years, China's imports of oilseeds, coarse grains and dairy are expected to climb, while the country is projected to beat the EU as the world’s top consumer of pork by the year 2022 on a per capita basis. 

China to become the global consumer of pig meat

 China is expected to become the world's leading consumer of pork on a per capita basis, surpassing the European Union by 2022, according to Focus on China - OECD-FAO Agricultural Outlook 2013-2022 report.

Chinese market remains open to US pork

 China's Ministry of Commerce said that the Chinese market is still open to US pork and the statement that the country bans the import of pork from the US is totally unfounded.

China hog and pig feed prices rebound modestly in first week of June

 China hog prices averaged RMB13.87/kg (US$2.26/kg) in the first week of June, an increase of RMB0.36/kg (US$0.059/kg), or 2.9% compared to the previous week. As a result, hog traders experienced lower buying pressure. 

China allows transport of qualified breeding birds nationwide

 Qualified breeding birds or young breeders from quarantined producing areas but proved to H7N9-free by lab testing are now being allowed to be distributed and delivered throughout China. This follows a May 10 announcement by six departments of the Chinese government that banned provinces with confirmed H7N9 avian influenza infections or where H7N9 virus was found from animals and environmental samples from transporting live poultry across provincial borders.

Acceptance of chilled chicken in China important to industry's recovery

 The disappearance of live markets in China has left consumers there without a venue to purchase poultry the way they like it best. That has posed a problem for an industry already struggling because of consumer fears from an outbreak of avian influenza that infected 131 people and caused 38 deaths during the spring of 2013.

China's falling premium fish demand and rising soymeal prices narrow fish feed profits

 The shareholders of listed subsidiary company Ningbo TECH-BANK Co., Ltd. posted a net loss of RMB 16.364 million (US$2.67 million) in Q1, a fall of 483.23% on-year, though the company saw an increase of 11.96% in operating revenues. At the same time, sales from January to April rose but remained stagnant in May. 

Baby formula industry to consolidat

 About a third of the country's baby formula businesses will be axed, in what experts are calling a major consolidation of the industry. The government has been trying to revive the industry since the 2008 melamine scandal, but consumer confidence is still lacking.

Mengniu may buy private milk powder company

 China Mengniu Dairy Co Ltd, the country's largest dairy producer, suspended trading on Thursday amid speculation over a possible acquisition of Guangdong Yashili Group Co Ltd, a privately owned milk powder maker.

World Dairy Expo and Summit/ China 2013 held in Jiangxi

 World Dairy Expo and Summit/ China 2013, sponsored by Dairy Association of China, was held in Nanchang of Jiangxi Province on June 1, 2013. Vice Minister of Agriculture Gao Hongbin, Vice Governor Xie Ru of Jiangxi Province, Honorary Chairman Liu Chenguo of the Dairy Association of China , Chief Veterinary Officer Yu Kangzhen and other senior officials attended and addressedthe opening ceremony.

Kraft starts building Suzhou plant

 US food company Kraft Foods China said today it has started the construction of a 545 million yuan (US$88 million) plant in Suzhou, Jiangsu Province, to expand production capacity as demand rises.

US to be largest trade partner

 China and the United States will probably become each other's largest trade partner by 2022, and China will surpass Canada and Mexico to become the largest importer of US goods by then, said a report released on Tuesday.

Huiyuan to sell Shanghai branch to Taiwan food group

 Hong Kong-listed China Huiyuan Juice Group Ltd confirmed Wednesday that negotiations to sell its Shanghai branch are in progress but no deal has been reached.

KPMG: Broaden horizons on M&As overseas

 Chinese companies pursuing overseas expansion should widen their search for mergers and opportunities in Europe in sectors such as agriculture and design, said accounting firm KPMG.

Wanda announces $1.6b UK investment

 Dalian Wanda Group Corp Ltd, one of China's largest property developers, announced Wednesday in Beijing that it will launch a £1-billion ($1.6-billion) investment for the overall control of UK luxury yacht manufacturer Sunseeker and construction of a five-star hotel in London's core area, according to sohu.com.

Wanda launches $1b New York hotel project

 China's Wanda Group, which owns AMC Theaters, is spending $1 billion to build a five-star hotel in New York City, becoming a new addition to the recent Chinese investment wave in the Big Apple's real-estate market.

Building equipment sector shifts overseas to get in gear

 China's construction machinery industry is bracing for sluggish growth, with more domestic companies being forced to build plants overseas to grab market share there, industry insiders said.

Statistics

Average food prices in 50 cities June 11-20, 2013

Item
Specification/Unit
Current price
(RMB)
Percentage changes
as compared to last period
(%, June 1-10, 2013)
Rice
Japonica rice / kg
5.73
0.0
Flour
Strong flour / kg
5.21
-0.2
Flour
Standard wheat / kg
4.41
0.0
Soy products
Bean curd / kg
4.30
0.7
Peanut oil
5 Lin barrel bulk / litre
29.08
-0.3
Soyabean oil
5 Lin barrel bulk / litre
11.56
-1.1
Rape seed oil
Grade 1 in bulk / kg
13.67
-0.1
Pork
Rump / kg
24.75
0.7
Pork
Belly meat / kg
24.57
0.7
Beef
Leg / kg
62.59
0.5
Mutton
Leg / kg
62.81
0.4
Chicken
Frozen fresh chicken / kg
18.24
1.6
Chicken
Breast / kg
20.33
0.3
Ducks
Frozen fresh duck / kg
16.13
0.6
Eggs
Fresh eggs in bulk / kg
9.44
-0.4
Source: China National Bureau of Statistics

Major meat retail price June 2013

 

Pork (Lean):
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       06/11/13-
06/20/13
B.       06/01/13-
06/10/13
C.       05/11/13-
05/20/13
D.       06/11/12-
06/20/12
(A-B)/B
(A-C)/C
(A-D)/D
29.00
28.62
28.26
28.58
1.32%
2.62%
1.47%
 
Egg:
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        06/11/13-
06/20/13
F.        06/01/13-
06/10/13
G.       05/11/13-
05/20/13
H.       06/11/12-
06/20/12
(E-F)/F
(E-G)/G
(E-H)/H
9.48
9.54
9.42
9.56
-0.62%
0.64%
-0.84%
 
Chicken:       
                                                                              RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         06/11/13-
06/20/13
J.         06/01/13-
06/10/13
K.       05/11/13-
05/20/13
L.        06/11/12-
06/20/12
(I-J)/J
(I-K)/K
(I-L)/L
18.24
17.80
17.76
17.66
2.47%
2.70%
3.28%
 
Source: China Animal Agriculture Association
 
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