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China Agricultural Newsletter - July 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

Li reassures farmers of government subsidies

Premier Li Keqiang assured farmers of government agricultural subsidies and encouraged them to improve productivity during a visit to the rural suburbs of Nanning, the capital of the Guangxi Zhuang autonomous region, on Tuesday.

China issues trade facilitation measures

China rolled out measures on Wednesday to stabilize weak trade as its economy undergoes restructuring."China faces a complex and challenging environment, with exports and imports easing their pace of growth. We need to advance innovative mechanisms to enhance trade facilitation and enterprises' competitiveness," Premier Li Keqiang said at a meeting of the State Council.

China to suspend VAT on small businesses

BEIJING, July 24 (Xinhua) - China will suspend the value-added tax (VAT) and turnover tax on small businesses with monthly sales of less than 20,000 yuan (3,226 U.S. dollars) from Aug. 1.

China to relax forex rules for trade in services

The State Administration of Foreign Exchange (SAFE) announced Wednesday a series of measures to relax forex regulations for trade in services, at a time when small exporters are suffering negative growth.

China pumps $417m into agricultural industrialization

The central government has set aside a 2.58 billion yuan (417.31 million U.S. dollars) subsidy to boost the amount of loans for the agricultural industrialization, the Ministry of Finance said on Thursday.

China lifts corn price to support farmers

 China has lifted its support price for domestic farmers to levels well above those in global markets, which may have given a prop to world corn price too.

Govt pumps more funds into H7N9-hit poultry sector

The Chinese government has injected more funds into the poultry secto r, which has been reeling from the effects of the H7N9 avian influenza virus since March.

China completes improvement of dairy, food standards

 As part of efforts to address food safety concerns, China has completed an overhaul of standards for dairy products. Chen Rui, an official from the National Health and Family Planning Commission (NHFPC), said at a regular news conference that the government is also strengthening standards concerning food contaminants, fungal toxins, food additives and food labels. The overhaul is part of a five-year plan to upgrade food safety regulations.

Industry and Business Watch

China's farm produce prices retreat last week

 Farm produce prices in 36 major Chinese cities went down last week, as wholesale prices of eight aquatic products shed 0.6 percent from a week earlier, the latest data showed Tuesday.

Grain imports grow as eating habits change

 China's grain imports will rise in the second half of this year, as the population continues to gain access to higher-protein food and industrial use of grain crops expands, industry experts said.

China remains as top buyer of corn, soy, and wheat

 China maintains its position as a major buyer of corn, soy and wheat from the US after production was hampered by adverse weather conditions in 2012.

China's soy imports may surge on decreasing oilseeds drop

 Oil World has warned China on the decline of the country's domestic oilseeds harvest which will whet its appetite for purchases of foreign supplies.

China's damaged wheat crop to be downgraded to animal feed use

 Due to frost in the growing period and rain during harvest, China's wheat crop has suffered more severely than previously thought, and as much as 20 million tonnes of wheat crop in China's northern grain belt, or 16%, may be downgraded to animal feed use instead of human consumption.

Chinese pig production, pork imports continue to grow

 In 2012, Chinese hog stock reached 462.94 million, including 50.68 million sows. China hog fattening volume amounted to 696.28 million, ranking the first in the world, with almost half of the global hog fattening volume. In 2012, the rate of hog fattening volume was 150%. On average, the annual fattening volume of each sow is 13.7, according to China's hog production and pork market from Research and Markets.

Smithfield deal gets 2nd US security review

 Smithfield Foods Inc, the world's largest pork processor, said Wednesday that a United States foreign-investment committee will conduct an additional 45-day review of its proposed $4.7 billion takeover by Shuanghui International Holdings Ltd, China's largest meat producer.

H7N9 virus greatly affects China's poultry industry

 In April, the government closed many markets in some areas, including Zhejiang and Jiangsu provinces, to prevent the spread of the disease. They began to reopen from the end of June. 

China's demand for beef increases

 China's beef imports have risen to record levels due to increased local demand, a development which has encouraged Chinese meat firms to scout for potential acquisition among foreign beef farmers and processors.  

China's beef prices surge 28% in June on-year

 China's beef prices surged 28% in June compared with the same month in 2012 and have risen 30% every month for the past year. The rise in beef prices has dissipated slightly since its February 2013 peak of 35%. Around that time, demand for beef imports began rising sharply in response. 

Australian cattle industry eyes Chinese market

 The Queensland Government is hoping more Australian cattle will soon be exported to China as it seeks ways to stimulate the state's cattle industry, local media reported on Tuesday.

China's dairy demand may drive up global prices

 Given that supplies are “still fundamentally short” after the weak start to 2013's production, global dairy commodity prices should keep near current levels through the rest of the July towards the September quarter, with the wild card being China’s demand, according to the US Dairy Export Council.

New Zealand eyes China's high-end dairy product market

 BEIJING, July 2 (Xinhua) - New Zealand's dairy industry sees high-end products as a way to establish itself in China's growing dairy market, New Zealand's primary industries minister Nathan Guy said here Monday.

Yili signs agreement with Dairy Farmers of America

 Inner Mongolia Yili Industrial Group - China's second-largest dairy producer by revenue — has signed a strategic cooperation agreement with Dairy Farmers of America Inc, news website Netease.com reported.

China vitamin feed additive market may reach 280,000 tons by 2015

 In 2013-2015, Chinese feed vitamin production is expected to be around 220,000-280,000 tons, with exports occupying 75-80 percent of that figure, according to reports. China has become an important global vitamin-producing and -consuming country, and in recent years exports have accounted for about 80 percent of the total output. In 2012, China produced 240,000 tons of vitamins, including exports of 187,000 tons.

Hendrix Genetics and New Hope Group strengthen animal breeding and distribution partnership

 Dutch multi-species breeding company Hendrix Genetics and China’s New Hope Group signed a memorandum of understanding to strengthen their partnership in view of further modernization and technology advancement of Chinese agriculture. 

French-Chinese group offers veterinary products to poultry, swine producers

 Veterinary groups Ceva Santé Animale of France, and Sichuan Hengtong Animal Pharmacy Co. of China signed an international partnership agreement to create Ceva Hengtong. The partnership will offer pharmaceutical products and services to poultry and swine producers in China.

Wahaha Group to boost shopping center business

 Hangzhou Wahaha Group, China's largest beverage group by sales, will continue to develop new shopping malls across the nation despite the current losses from its first.

China using global approach in investment talks with US

 A Ministry of Commerce (MOC) spokesman said Friday that China has adopted a globally-recognized approach in conducting bilateral investment negotiations with the United States.

Kraft tailors its name for Chinese market

Kraft Foods China has undergone a name change. It is now Mondelez China, along with the Chinese name Yi Zi, according to Irene Rosenfeld, chairman and CEO of Mondelez International.

More Chinese firms investing in the US

 Despite technical and political obstacles, Chinese business investment in the United States will keep growing fast in the near future, experts said.

Statistics

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

 

 
 

Item
Specification/Unit
Current price
(RMB)
Percentage changes
as compared to last period
(%, July 1-10, 2013)
Rice
Japonica rice / kg
5.73
0.0
Flour
Strong flour / kg
5.25
0.6
Flour
Standard wheat / kg
4.41
0.5
Soy products
Bean curd / kg
4.29
0.2
Peanut oil
5 Lin barrel bulk / litre
28.95
-0.1
Soyabean oil
5 Lin barrel bulk / litre
11.48
-0.4
Rape seed oil
Grade 1 in bulk / kg
13.62
0.1
Pork
Rump / kg
25.14
0.9
Pork
Belly meat / kg
24.86
0.6
Beef
Leg / kg
63.15
0.3
Mutton
Leg / kg
63.18
0.3
Chicken
Frozen fresh chicken / kg
18.37
0.5
Chicken
Breast / kg
20.30
-0.3
Ducks
Frozen fresh duck / kg
16.42
1.0
Eggs
Fresh eggs in bulk / kg
9.05
-1.0
Source: China National Bureau of Statistics

Major meat retail price July 2013

 

Pork (Lean):
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       07/11/13-
07/20/13
B.       07/01/13-
07/10/13
C.       06/11/13-
06/20/13
D.       07/11/12-
07/20/12
(A-B)/B
(A-C)/C
(A-D)/D
29.52
29.24
29.00
28.68
0.95%
1.79%
2.93%
 
Egg:
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        0711/13-
07/20/13
F.        07/01/13-
07/10/13
G.       06/11/13-
06/20/13
H.       07/11/12-
07/20/12
(E-F)/F
(E-G)/G
(E-H)/H
9.06
9.30
9.48
8.86
-2.58%
-4.43%
2.25%
 
Chicken:       
                                                                              RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         07/11/13-
07/20/13
J.         07/01/13-
07/10/13
K.       06/11/13-
06/20/13
L.        07/11/12-
07/20/12
(I-J)/J
(I-K)/K
(I-L)/L
17.96
18.28
18.24
17.58
-1.75%
-1.54%
2.16%
 

Source: China Animal Agriculture Association

 
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