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China Agricultural Newsletter - November 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: China will move to modernize farms

Premier Li Keqiang said China will make a new effort in agricultural modernization by promoting large-scale planting based on joint-stock ownership of land and better services to the farmers.

Gov't inputs 805 mln yuan for agriculture

The Ministry of Finance on Friday said the government has recently allocated 805 million yuan (131.11 million U.S. dollars) to boost agricultural industrialization.

Farmland funding rises

China's central government has allocated 30 billion yuan ($4.92 billion) in funds for the development of farmland nationwide recently, 30 percent higher compared with the total amount in 2012, the Ministry of Finance said in a statement released on its website Monday.

China to standardize animal and poultry husbandry

BEIJING, Nov. 26 (Xinhua) - Chinese authorities will standardize the breeding and raising of poultry and livestock because husbandry-generated pollution has become a major problem in the countryside, according to a regulation signed by Premier Li Keqiang.

China updates feed labeling law

In an effort to bring internal feed manufacturing practices closer to international standards, China has just revised Feed Labeling norm (GB 10648-2013), effective July 1, 2014.

China's health commission to evaluate safety of new food raw materials

China's National Health and Family Planning Commission (NHFPC) published Notice 23, requiring pre-market registration of new food raw materials in the form of “safety evaluation opinions” issued by qualified testing institutes.

Logistics sector set to upgrade, introduce standards

The Commerce Ministry will promote the standardization of key logistics equipment and provide financial aid to companies whose costs rise because of the new standards, officials said on Tuesday.

Investment rules eased under reform

BEIJING, Nov. 26 (Xinhuanet) - The central government is relaxing its grip on the level of enterprise investment that requires its approval, with as much as 60 percent no longer needing central authorization, according to an official.

Nation may start sale of cotton reserves this week

China is expected to start sales from its huge reserves of cotton as early as this week, trade sources said on Wednesday, increasing supply to the local market and pressuring international prices already steeply off August highs.

Industry and Business Watch

China's farm produce prices drop slightly

Farm produce prices in 36 major Chinese cities dropped slightly in the week ending Nov. 24 compared with the previous week, according to a Ministry of Commerce statement.

China's grain output likely to rise again

BEIJING, Nov. 22 (Xinhua) - China is likely to see another bumper year of grain production, making 2013 the 10th year in a row of increased output, the Ministry of Agriculture predicted on Friday.

China eyes 53 m hectare high-standard farmland by 2020

China aims to cultivate 800 million mu (53.33 million hectares) of high-standard farmland by 2020, said an economic planning official on Tuesday.

China boosts agriculture innovation to ensure food security

Xu Jingyu had been growing corn and wheat for a dozen years, but never imagined his saline-alkali soils could produce 500 kilograms of grain per mu (about 0.07 hectare).

China expected to allow market to decide grain prices

China will gradually let the market decide prices of grain and other major crops instead of the government arbitrarily setting levels, according to the China Economic Times.

China's 2013 corn production rises 2%

A recent USDA GAIN report revealed that China will produce 210 million tonnes of corn this year on slightly lower acreage but a 2% increase in average yield.

China's soy harvest declines due to flooding

China's soy harvest was damaged due to flooding in the north-eastern provinces of Heilongjiang giving added impulse to soaring soy imports.

China's soy imports rise, rapeseed imports fall in October

According to the statistics from the General Administration of Customs, China’s imports of soy continued to rise in October, while rapeseed imports are on the decline.

China to continue buying local soy, corn for reserves

The Chinese authorities will continue to buy soy and corn for state reserves from farmers this year, a move that is expected to keep domestic prices higher than the global market and which is bound to trigger more imports.

China allows imports of Brazilian corn

Providing a key market for surging production that has left a surplus of the grain in the Latin American farming giant, China has approved imports of Brazilian corn.

China rejects shipment of US corn of unapproved GMO variety

China, one of the world's largest corn importers, has rejected a cargo of US corn as its genetically modified variety-Syngenta AG's Agrisure Viptera corn, also known as MIR 162, is not approved for import by China.

China's wheat import forecast for 2013/14 revised to 8 million tonnes

The China National Grain and Oils Information Center (CNGOIC) released a new report for wheat imports on November 13, again revising up its forecast for the year 2013/14 to 8 million tonnes, the highest in nearly two decades.

US, China representatives discuss food security, safety issues

More than 300 people - including U.S. and Chinese government officials and representatives from the U.S. and Chinese poultry and feed grains industries - gathered in Beijing November 10-18 for the inaugural Sino-U.S. Poultry Industry Forum. The forum marks the first time that the U.S. poultry, soybean and grains industries have come together with the Chinese poultry industry for bilateral dialogue on key issues and imminent challenges such as food security, food safety and sustainability.

China's beef prices up nearly 80% from three years ago

China's wholesale price of beef as of November 17 had surged to RMB50 (US$8.21) per kilogramme, nearly 80% higher than three years ago, the Beijing Youth Daily reported.

Domestic milk market faces gap in supply

The widening gap between milk demand and supply will lead to a shortage totaling about 15 to 20 percent of China's market value in 2017, or 66 billion yuan ($10.75 billion), a report has said.

Sanyuan to raise prices of milk products

Beijing Sanyuan Foods Co will raise the prices of its products in December, with the price of a bottle of fresh milk delivered to homes to increase by 0.5 yuan ($0.08), Beijing Times newspaper reported Thursday.

Bright Food looks to bright future

BEIJING, Nov. 26 (Xinhuanet) - Shanghai-based Bright Food Group Co Ltd, China's second-largest food producer, is contemplating whether to list all of its newly acquired foreign assets as the company continues to internationalize its businesses and raise brand awareness overseas.

Yili looks to Italy for better milk

Chinese dairy company Inner Mongolia Yili Industrial Group Co has formed a "strategic partnership" with Italian peer Sterilgarda Alimenti SpA, allowing Yili to upgrade its technology and improve the quality of its liquid milk.

Foreign vegetable seeds threaten native industry

TIANJIN, Nov. 15 (Xinhua) - Facing increasing competition from foreign companies, vegetable seed researchers and producers in China should focus more on innovations if they are to avoid the country's food security being compromised, industry insiders have warned.

US cranberry exports to China at record high

The United States has exported a record amount of cranberries to China this year, up 86 percent year-on-year, according to the US Cranberry Marketing Committee.

Canada to export more agri-foods to China

VANCOUVER, Nov. 22 (Xinhua) - As China became one of the fastest-growing markets for Canadian agri-foods, Ottawa plans to increase such exports to the Asian country.

China's non-financial investment in U.S. grows fast

BEIJING, Nov. 15 (Xinhua) - China's non-financial investment in the United Sates grew fast in the first three quarters, marking a year-on-year increase of 251.1 percent, said a Chinese commerce official here on Friday.

CCA buys on Hudson riverfront

China Construction America Inc (CCA), a wholly owned subsidiary of China State Construction Engineering Corporation Ltd, completed the acquisition of 99 Hudson, a mixed-use development site overlooking Hudson River in Jersey City, New Jersey, the company said Thursday.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, November 1-10, 2013)

Rice

Japonica rice / kg

5.77

0.0

Flour

Strong flour / kg

5.36

0.2

Flour

Standard wheat / kg

4.47

0.0

Soy products

Bean curd / kg

4.34

0.0

Peanut oil

5 Lin barrel bulk / litre

27.87

-0.3

Soyabean oil

5 Lin barrel bulk / litre

11.24

-0.4

Rape seed oil

Grade 1 in bulk / kg

13.60

-0.2

Pork

Rump / kg

26.48

-0.1

Pork

Belly meat / kg

26.25

-0.3

Beef

Leg / kg

65.20

0.3

Mutton

Leg / kg

64.70

0.3

Chicken

Frozen fresh chicken / kg

18.66

-0.1

Chicken

Breast / kg

20.54

0.1

Ducks

Frozen fresh duck / kg

16.51

0.4

Eggs

Fresh eggs in bulk / kg

9.89

-0.3

Source: China National Bureau of Statistics

Major meat retail price November 2013

 

Pork (Lean): 

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A. 11/11/13-
11/20/13

B. 11/01/13-
11/10/13

C. 10/11/13-
10/20/13

D. 11/11/12-
11/20/12

(A-B)/B

(A-C)/C

(A-D)/D

30.26

30.38

30.54

29.44

-0.07%

-0.92%

2.79%

 

Egg:

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E. 11/11/13-
11/20/13

F. 11/01/13-
11/10/13

G. 10/11/13-
10/20/13

H. 11/11/12-
11/20/12

(E-F)/F

(E-G)/G

(E-H)/H

10.00

10.02

10.20

10.24

-0.20%

-1.96%

-2.34%

 

Chicken:        

                                                                              RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I. 11/11/13-
11/20/13

J. 11/01/13-
11/10/13

K. 10/11/13-
10/20/13

L. 11/11/12-
11/20/12

(I-J)/J

(I-K)/K

(I-L)/L

18.10

17.86

18.02

18.32

1.34%

0.44%

-1.20%

Source: China Animal Agriculture Association 

 
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