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China Agricultural Newsletter - October 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 relaxes company registration requirements

BEIJING, Oct. 27 - China will streamline its corporate registration system to ease market access and encourage social investment, a fresh effort highlighting the government's administrative reform, according to a cabinet statement released on Sunday.

China allocates funds to boost food security

BEIJING, Oct. 21 (Xinhua) - The Chinese central government has allocated 600 million yuan (97.88 million U.S. dollars) to encourage food output and help boost China's food security, the Ministry of Finance announced on Monday.

China allocates funds for boosting imports

BEIJING, Oct. 22 (Xinhua) - China's Ministry of Finance (MOF) said on Tuesday it has earmarked 2.8 billion yuan (456 million U.S. dollars) for interest discounts to importers of certain products to encourage trade.

Nation set to bolster the import of rice

The government is expected to further lower the bar on rice imports, in a bid to boost the country's food supply, industry experts said.

China tightens rules of imported baby formula

BEIJING, Oct. 16 (Xinhuanet) - China's Ministry of Commerce (MOC) on Tuesday told baby formula importers to be accurate when recording sales data and for there to be no monopoly in the industry, which has been plagued by quality and price-manipulation scandals.

China improves supervision of rural banks

BEIJING, Oct. 9 (Xinhua) - A Chinese banking regulator has revised the rules for the operation of rural financial institutions in order to step up supervision of small and medium-sized rural banks.

China tightens supervision of cocoa industry

BEIJING, Oct. 29 (Xinhua) - The supervision of cocoa businesses will be increased amid health concerns relating to the use of powdered shells instead of cocoa powder in food products.

Chinese vice premier stresses farmland irrigation works

BEIJING, Oct. 24 (Xinhua) - Chinese Vice Premier Wang Yang on Thursday urged improved farmland water conservation to boost steady agricultural growth. More efforts should be made on reform, infrastructure, food security, flood mitigation, drinking water and ecological safety, said Wang at a teleconference on irrigation.

Industry and Business Watch

China's farm produce prices stay flat

BEIJING, Oct. 30 (Xinhua) - Farm produce prices in 36 major Chinese cities stayed mostly flat in the week ending Oct. 27 compared with the previous week, according to the latest statistics from the Ministry of Commerce.

Govt confident of oil safety

A ban on State purchases of vegetable oil processed from imported rapeseeds is to protect domestic farmers' economic interests and does not mean the government is concerned about the safety of genetically modified food, an industry insider said.

Govt requested to plant GM crops

Experts in genetically modified product research have revealed that they petitioned the central government in July to increase the production of genetically modified crops.

China corn output to hit record high

China's corn production could hit a record high of 215 million tons in 2013 despite drought and flooding in the country's major breadbaskets, according to estimates by two industry organizations.

US corn export orders to China reach 1.2 million tonnes in October 2013

China has acquired around 1.2 million tonnes of US corn this month, with shipments due to arrive in the country during March-June 2014.

Demand drives soybean imports

Soybean imports are likely to rise to a new high in the 2013-14 market year (September 2013 to August 2014) following a drop in domestic output and greater demand for animal feed and edible oil.

Chinese hybrid rice yield hits record

A team led by Yuan Longping, known in China as "the father of hybrid rice" has made a record for hybrid rice production with an average yield of 988.1 kilograms per mu (0.0667 hectares).

COFCO signs MOU to buy one million tonnes of Thai rice

China National Cereals, Oils and Foodstuffs Corporation (COFCO) signed a memorandum of understanding (MOU) with Thai Rice Exporters Association (TREA) to purchase one million tonnes of Thai rice over the next five years on October 11.

China receives first shipment of US sorghum for feed use

China's Guangzhou port received the country's first bulk shipment of US sorghum for feed use on October 18, marking a significant day for US sorghum exporters.

China's Da Bei Nong to invest in four new feed mill projects

China's Da Bei Nong Group has announced its plans of constructing four new feed mill projects in the country worth CNY 350 million (US$57 million).

China's high pork demand lifts global prices

The global pork industry has experienced a positive third quarter, according to Rabobank's fourth quarter report. In line with expectations, the Rabobank five-nation hog price index continued its upward trend, resulting in a peak of 162% in August, just below the last peak of 165% in August 2008. The index declined at the end of the third quarter due to the recovery of supply after the Summer heat.

China's beef demand continues to soar

For the first half of this year, Canadian beef exports to China totaled 10,088 tonnes, a three-fold increase from last year's amount for Canada, as reported by the North American Meat Association (NAMA).

China's import of Australian red meat up 46% in September

Meat and Livestock Australia (MLA) reports that during September, China's import of Australian red meat registered the second highest volume on record at 52,620 tonnes swt.

China, Western Australia sign deal on live cattle trade

In a ground-breaking deal that could open up a new market and reduce the industry's reliance on shipments to Indonesia, China is set to allow the live import of cattle from Western Australia for the first time.

OSI Group launches two new poultry processing plants in China

OSI Group, LLC opened its ninth and tenth processing plants in China on October 19, including a multi-protein further processing (FP) facility and an integrated poultry operation in Xihua, Henan Province.

M&A aims to buoy dairy sector

The Chinese dairy industry is expected to go from 127 producers to 50 in five years through mergers and acquisitions, an industry insider said.

Shanghai Pengxin Group to buy second New Zealand dairy business

Chinese conglomerate, Shanghai Pengxin Group, is poised to buy Synlait Farms Ltd, marking the company's second purchase of a dairy farm business in New Zealand.

US sees export potential in China's soaring UHT milk demand

China's demand for imported ultra high temperature (UHT) milk is soaring as its consumption jumped from nearly 18 million pounds in 2010 to a forecast 331 million pounds this year, according to a new research study from the US Dairy Export Council (USDEC).

Cotton purchasing and storage system in China found outdated

Since the government implemented the cotton purchasing and storage system three years ago, China's cotton industry has come to a crossroads as domestic cotton prices remain much higher than those in the international market, according to media related to the cotton industry.

Wumart buys CP Lotus supermarkets for 302 mln USD

BEIJING, Oct. 15 (Xinhua) - Wumart Stores, a leading Chinese retail chain, announced Tuesday it has agreed to buy most CP Lotus supermarkets in the mainland for 2.35 billion HK dollars (302 million U.S. dollars).

Walmart China strategy: 110 new stores

Wal-Mart Stores Inc said they will open up to 110 new stores over the next three years, with many locations at second and third tier cities and a focus to invest in its distribution centers and remodel existing stores.

Outbound investment to accelerate

China will accelerate outbound foreign investment, especially in agriculture, technology, and consumer goods sectors, Ernst & Young said in a report yesterday.

Overseas M&A deals reach record high in 1st half

Chinese companies' overseas merger and acquisition (M&A) activities reached a record high in the first half of the year, and the deals may continue to increase rapidly in the coming 12 months, a report from Deloitte China said on Tuesday.

COFCO eyes deals for sugar, wine overseas

China National Cereals, Oils and Foodstuffs Corp, known as COFCO, will focus its overseas acquisition drive in the wine and sugar sectors to meet growing demand at home, a senior company official has said.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, October 1-10, 2013)

Rice

Japonica rice / kg

5.76

0.0

Flour

Strong flour / kg

5.35

0.6

Flour

Standard wheat / kg

4.47

0.2

Soy products

Bean curd / kg

4.32

0.0

Peanut oil

5 Lin barrel bulk / litre

28.10

0.1

Soyabean oil

5 Lin barrel bulk / litre

11.26

0.4

Rape seed oil

Grade 1 in bulk / kg

13.58

0.1

Pork

Rump / kg

26.67

-0.4

Pork

Belly meat / kg

26.48

-0.3

Beef

Leg / kg

64.84

0.3

Mutton

Leg / kg

63.70

0.2

Chicken

Frozen fresh chicken / kg

18.63

-0.1

Chicken

Breast / kg

20.50

0.2

Ducks

Frozen fresh duck / kg

16.42

-0.5

Eggs

Fresh eggs in bulk / kg

10.10

-1.6

Source: China National Bureau of Statistics

Major meat retail price October 2013

Pork (Lean): 

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A. 10/11/13-
10/20/13

B. 10/01/13-
10/10/13

C. 09/11/13-
09/20/13

D. 10/11/12-
10/20/12

(A-B)/B

(A-C)/C

(A-D)/D

30.54

30.58

30.80

29.60

-0.13%

-0.84%

3.18%

 

Egg:

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E. 10/11/13-
10/20/13

F. 10/01/13-
10/10/13

G. 09/11/13-
09/20/13

H. 10/11/12-
10/20/12

(E-F)/F

(E-G)/G

(E-H)/H

10.20

10.40

10.96

10.46

-1.92%

-6.93%

-2.49%

 

Chicken:        

                                                                              RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I. 10/11/13-
10/20/13

J. 10/01/13-
10/10/13

K. 09/11/13-
09/20/13

L. 10/11/12-
10/20/12

(I-J)/J

(I-K)/K

(I-L)/L

18.02

18.00

18.44

18.20

0.11%

-2.28%

-0.99%

 

Source: China Animal Agriculture Association 

 
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