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China Agricultural Newsletter - December 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 to balance growth, reform next year

China pledged to maintain stable economic policies next year to sustain growth while forging ahead with reforms as the nation's leaders wrapped up the annual Central Economic Work Conference in Beijing yesterday.

China to complete land-use right registration in 5 years

BEIJING, Dec. 25 (Xinhua) - China will steadily push forward the issuing of land-use certificates in rural areas and aims to complete the work in five years, the top agriculture official said on Wednesday.

China's agriculture head clarifies land reform policies

China's top agriculture official on Friday called for "comprehensive understanding" of the land reform package outlined last month after various interpretations since the announcement prompted concerns that the policy may go off track.

China expects further rural reform to benefit farmers

Since China's first experiments in household contract system 35 years ago, the country's rural reform has accelerated, with more detailed and far-reaching plans expected to be rolled out this week.

China cultivates plans to boost grain output

Despite rising imports, China is committed to feeding its people on its own, though it will also take advantage of the global market, Minister of Agriculture Han Changfu reaffirmed on Friday.

China to blacklist illicit food, drug makers

BEIJING - China will blacklist producers of illicit food, drugs, medical appliances and cosmetics, according to a draft regulation published on Thursday. Information on producers who "have seriously violated laws and regulations concerning food, drugs, medical appliances and cosmetics management and received administrative penalties" will be made public through government websites, says the draft regulation, which was issued by the China Food and Drug Administration.

China to reinvestigate duties on U.S. chicken imports

BEIJING, Dec. 25 (Xinhua) - China's Ministry of Commerce on Wednesday decided to reinvestigate its anti-dumping and anti-subsidy duties on U.S. white-feathered broiler products in response to a WTO report that found China had violated certain rules.

Tighter regulation on China's infant formula producers

China's food and drug watchdog on Wednesday unveiled a revised regulation which will significantly increase standards for domestic infant-formula producers.

China, U.S. conclude annual trade talks

BEIJING, Dec. 20 (Xinhua) - China and the United States on Friday concluded their annual trade talks, agreeing to remove some trade barriers and build a foundation for the new model of major power relations.

Call for investing in diverse overseas projects

Vice-Premier Wang Yang called on Tuesday for outbound investors to explore new areas such as infrastructure, renewable energy and advanced manufacturing. "Last year, China ranked third in the world in terms of outward direct investment flows, after the United States and Japan, but there's much room for further development," he said.

China outlines measures to protect small investors

BEIJING, Dec. 27 (Xinhua) - China's cabinet on Friday outlined a slew of measures aimed at better protecting the interests of small and medium investors in the capital market.

Industry and Business Watch

China's farm produce prices rise slightly

Farm produce prices in 36 major Chinese cities rose slightly in the week ending Dec. 15 compared with the previous week, showed a Ministry of Commerce statement on Tuesday.

China's staple food supply relies on imports

China has imported a substantial amount of food as domestic production has failed to meet high domestic demand, which China Economic Net citing a netizen believes should be measured and rationalized, as it would affect the country's grain security on the basis that the global grain production is, after all, limited.

U.S. soybean exports to China to reach new high

About 26 million tonnes of soybeans will be exported from the United States to China for the period from September 2013 to August 2014, U.S. Soybean Export Council said on Tuesday in Shanghai.

GM corn application under review

China is reviewing a new application to import genetically modified (GM) corn after previous ones were rejected for the reason of insufficient application material, according to the Ministry of Agriculture (MOA) on Friday.

China rejects U.S. GM corn byproduct

BEIJING, Dec. 27 (Xinhua) - China has rejected two batches of U.S. dried distillers' grains with solubles (DDGs), a corn by-product, found to be tainted with a genetically-modified (GM) strain not approved by the country's agriculture ministry, its top quality supervisor said Friday.

China wheat prices forecast to remain strong until early 2014

Fuelled by high demand for the grain ahead of traditional holiday, China's wheat prices gained ground this week to hover around record levels and are likely to remain elevated until at least early next year.

Rising demand drives 721% hike in wheat imports last month

China's wheat imports are expected to hit a nine-year high in 2013, as the country continues to turn to the international market to meet a surging demand for the grain for use in high-protein foods, animal feed, industry and processed goods.

US distillers grains imports

China's recent strict checks for an unapproved genetically modified (GMO) strain in US corn cargoes have not interrupted shipments of US dried distillers grains (DDG), a byproduct of corn-based ethanol, an official think tank said Tuesday.

China expresses interest in investing in feed production in Bulgaria

China has shown a strong interest in investing in Central and Eastern Europe's agro-industries, including the production of animal feeds.

UK eyes expansive Chinese pork market

Britain is seeking entry into the Chinese pork market, with the latest example being a deal to export pig semen, inked during the British prime minister David Cameron's recent visit to China.

China's beef imports to double, cattle herds to grow

The world's biggest meat consumer may double beef imports by 2018, as Chinese consumers can afford to buy more products deemed to be safer and healthier, according to Babobank International.

US, China continue progress on beef trade

With the intention of restoring market access by the middle of next year, the US and China will continue to negotiate US beef exports to China, the USDA reported.

Chicken farm flu outbreak 'under control'

The Chinese mainland's first outbreak of H5N2 bird flu, which killed 4,000 birds at a chicken farm, is under control, authorities in a northern province said on Sunday.

Tyson invests in chicken farms in China to tackle food safety

Tyson Foods is spending hundreds of millions of dollars to build its own chicken farms in China instead of relying on third-party suppliers for its chicken supply in the name of food safety, reports the Wall Street Journal.

Dairy prices rise as supply shrinks

Chinese consumers can expect higher dairy prices in December because of a shrinking supply of raw milk from the country's fragmented milk farms. Most domestic dairy companies put up prices last week, ranging from five to 20 percent. This was mainly in the low-end milk market.

Zhengbang Group and Merial China cooperate on animal health business

In a memorandum signed on November 22, Zhengbang Group and Merial China agreed to set up a joint venture in Jiangxi Province and start cooperation in the areas of pharmaceutical manufacturing, development of FMD vaccine and cutomised vaccines.

'Go Global' pushing up China M&A

China, expected to overtake Japan as No 1 in overseas mergers and acquisitions this year, is seeing deal volume rise as its leaders push companies to "go global", an analyst said.

China Investment Corporation eyeing takeover of Australia's Warrnambool

China Investment Corporation is backing a Chinese food group to acquire Australian dairy giant Warrnambool Cheese & Butter (Warrnambool), reports The Australian.

China capital key for NZ agriculture

Investment capital from China and other foreign sources is essential for New Zealand's agriculture sector to expand to meet growing international demand for food, the head of New Zealand's farming industry group said Thursday.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, December 1-10, 2013)

Rice

Japonica rice / kg

5.76

-0.2

Flour

Strong flour / kg

5.40

0.4

Flour

Standard wheat / kg

4.48

0.5

Soy products

Bean curd / kg

4.39

0.2

Peanut oil

5 Lin barrel bulk / litre

27.64

-0.3

Soyabean oil

5 Lin barrel bulk / litre

11.23

-0.1

Rape seed oil

Grade 1 in bulk / kg

13.52

-0.4

Pork

Rump / kg

26.71

0.0

Pork

Belly meat / kg

26.44

-0.3

Beef

Leg / kg

65.70

0.1

Mutton

Leg / kg

65.58

0.5

Chicken

Frozen fresh chicken / kg

18.70

0.1

Chicken

Breast / kg

20.65

0.2

Ducks

Frozen fresh duck / kg

16.56

0.2

Eggs

Fresh eggs in bulk / kg

9.92

0.7

Source: China National Bureau of Statistics

Major meat retail price December 2013

Pork (Lean): 

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A. 12/11/13-
12/20/13

B. 12/01/13-
12/10/13

C. 11/11/13-
11/20/13

D. 12/11/12-
12/20/12

(A-B)/B

(A-C)/C

(A-D)/D

30.40

30.52

30.26

30.26

-0.40%

0.46%

0.46%

 

Egg:

                                                                      RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E. 12/11/13-
12/20/13

F. 12/01/13-
12/10/13

G. 11/11/13-
11/20/13

H. 12/11/12-
12/20/12

(E-F)/F

(E-G)/G

(E-H)/H

9.94

9.90

10.00

10.62

0.40%

-0.60%

-6.40%

 

Chicken:        

                                                                              RMB1.00 yuan/kg 

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I. 12/11/13-
12/20/13

J. 12/01/13-
12/10/13

K. 11/11/13-
11/20/13

L. 12/11/12-
12/20/12

(I-J)/J

(I-K)/K

(I-L)/L

18.08

18.20

18.10

18.42

-0.66%

-0.11%

-1.85%

Source: China Animal Agriculture Association 

 
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