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China Agricultural Newsletter - March 2014

The China Agricultural Update is provided by the Iowa Economic Development Authoritys (IEDA) office in China, which is operated by Phoenix Consulting LLC. Ms. Wendy Zhang, IEDAs 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 IEDAs Beijing Office, please contact Mr. Joseph Rude at joseph.rude@iowa.gov.

Laws, Regulations and Policies

The nine major tasks 2014

As the nation's legislators set the agenda for the coming year at the National People's Congress, China Daily takes a look at some of the Chinese government's key policy objectives for 2014.

Vice Premier underlines agricultural development

Chinese Vice Premier Wang Yang has called for more efforts in developing agriculture to ensure food security and enrich farmers, according to an official statement issued on Tuesday.

Agricultural investment to continue

China will continue to invest heavily in the agriculture sector to ensure food security, with 70 billion yuan ($11.27 billion) being allocated to water resource infrastructure, a spokesman for the National Development and Reform Commission(NDRC) said Wednesday.

China to set up credit system for farmers, small companies

BEIJING, March 27 (Xinhua) -- China's central bank announced on Thursday it has issued a guideline to step up the creation of a credit system for serving small and micro-sized companies and farming households.

China to expand credit for spring plowing

The People's Bank of China (PBoC) announced Wednesday it will add 20 billion yuan (3.26 billion U.S. dollars) to re-lending quotas for financial institutions to support spring plowing in the world's most populous country.

China sets up national monitoring campaign to fight bird flu

In order to remove the H7N9 virus from the root, China’s agriculture ministry is planning on setting up monitoring networks for the H7N9 bird flu virus across the country’s provinces, cities and counties.

Govt urged to introduce soil pollution control act

The government should come up with a soil pollution control act for better protection of the ever-worsening soil and water conditions in the country, a political adviser said.

GM food safety tests, logos are planned

China is working on an evaluation system for genetically modified (GM) food in order to assess its impact on the environment and human health, a senior official said.

China to adopt new egg standards

 China's Standardization Administration is considering nationwide standards for liquid egg and egg powder. The two standards, an initiative of the China General Chamber of Commerce, are expected to be implemented this year, reports the International Egg Commission.

Industry and Business Watch

China to speed up sale of state grain and cotton reserves

In order to ease the bank’s mounting debts, the Agriculture Bank of China has urged Beijing to speed up the sale of its state grain and cotton reserves, which are now at record high levels.

China may increase state corn stockpile by 60 million tonnes

Due to lower-than-expected demand, the Chinese government is likely to stockpile a record volume of corn for state reserves in the current marketing year, an official think-tank said.

China rejected more U.S. corn due to unapproved GMO

Following the discovery of an unapproved genetically modified organism (GMO) strain in shipments, China has rejected more US corn, while buyers anticipate sales from the country huge state reserves or look to cheap grain from Ukraine.

China may approve Syngenta's GM corn strain in H1 2014

Following submission of additional material to authorities in November, China’s process in approve Syngenta’s MIR162 genetically modified corn is underway, vice agriculture minister Niu Dun said.  

China may cancel soy imports on high stockpiles

Due to the country’s ample stockpiles and slowing demand, China, the world’s biggest soy buyer, probably will cancel or postpone delivery of more cargoes from the US and South America, Oil World said.

China's February pork prices down 9%

While China’s consumer price index rose 2% in February, the slowest rate in 13 months, the country’s pork prices fell 9%, the most in more than a year, a sign that slowing growth poses a big risk to the country’s economy than rising prices, the National Bureau of Statistics said.

China launches"La Pampa"beef brand in major supermarkets

The Chinese-owned “La Pampa” brand is being rolled out this spring in the refrigerated aisles at major supermarket chains, with two vacuum-packed steaks priced at RMB62.16 (US$10), or RMB316 (US$51) per kilogramme – several times the price of Chinese beef.

China's beef imports continue to rise due to high demand

 Industry sources estimate hundreds of thousands of tonnes of beef from countries such as Brazil and India is being smuggled into China via neighboring Hong Kong and Vietnam, which reflects China’s hunger for beef.

H7N9 detected in S China poultry farm

The H7N9 bird flu virus has been found in a poultry farm in the southern city of Zhuhai in Guangdong Province, the provincial agriculture department confirmed on Thursday.

China bird flu could curb demand for animal feed

There is concern that the spread of bird flu in China will hamper demand for animal feed, as livestock owners cut their herds due to falling hog prices.

Inner Mongolia lays out plan to solve milk shortage

The Inner Mongolia autonomous region, the biggest source of raw milk in China, will carry out a series of measures to tackle its recent milk shortage.

China becomes world's second largest agricultural insurance market

China has become the world's second largest agricultural insurance market after the United States, the country's insurance regulator said on Tuesday.

Minister Han Changfu gives Press Conference on rural reform

Minister Han Changfu gave a Press Conference for the second session of China's 12th National People's Congress (NPC) on rural reform in Beijing on March 6, 2014.

Zero tolerance on food security issues: Minister

Though problems still remain, food security as a public service should be assured by the Chinese government, said Agriculture Minister Han Changfu Thursday at a news conference during the second session of the 12th National People's Congress.

Rural land transfer shall not be forced: Minister

China's agricultural minister Han Changfu stressed Thursday that rural land transfer should be carried out in a gradual and orderly manner and shall not be forced as local governments rush to achieve their reform goals.

The logic of Chinese investments in the U.S.

In 2014, Chinese business has maintained the momentum of its investment in foreign countries, with overseas mergers and acquisitions also continuing to be popular. Lenovo recently announced the purchase of the IBM X86 server business, Wanxiang Group won approval to purchase Fisker Automotive, and Kinye Group plan to enter the oil and gas field business in the U.S. All these instances show that as its economy recovers, the U.S. has become an important target for Chinese investment.

China expresses interests in buying grain companies in Kazakhstan

Chinese businessmen are interested in the grain market in Kazakhstan and intend to buy large grain companies in the north of the country, according to a source from the Ministry of Agriculture. 

COFCO signs investment agreement with Nidera

China National Cereals, Oils and Foodstuffs Corp, known as COFCO and the country's largest food trader, signed an official investment agreement with the Netherlands-based agricultural and commodity trading group Nidera BV on Sunday to acquire 51 percent of its stock and establish a strategic cooperation.

New Hope Group to open two feed mills in Russia

New Hope Group plans to invest RMB80 million (US$12.94 million) to open two feed mills in Moscow and Yekaterinburg, reported the financial site AAStocks.

Pengxin moves to expand holdings of NZ dairy with Synlait buyout

Shanghai Pengxin Group Co Ltd has won approval from Chinese regulators to buy a controlling stake in a 4,000-hectare dairy farm in New Zealand, part of its strategy to meet growing domestic demand with imports.

Statistics

Average food prices in 50 cities March 11-20, 2014

 

 

Item
Specification/Unit
Current price
(RMB)
Percentage changes
as compared to last period
(%, March 1-10, 2014)
Rice
Japonica rice / kg
5.94
0.0
Flour
Strong flour / kg
5.50
0.4
Flour
Standard wheat / kg
4.50
0.0
Soy products
Bean curd / kg
4.46
-0.2
Peanut oil
5 Lin barrel bulk / litre
27.18
0.3
Soyabean oil
5 Lin barrel bulk / litre
11.18
-0.5
Rape seed oil
Grade 1 in bulk / kg
14.01
0.1
Pork
Rump / kg
23.29
-2.3
Pork
Belly meat / kg
23.25
-2.4
Beef
Leg / kg
66.53
-0.2
Mutton
Leg / kg
66.70
-0.3
Chicken
Frozen fresh chicken / kg
18.78
0.0
Chicken
Breast / kg
20.62
-0.4
Ducks
Frozen fresh duck / kg
16.68
0.3
Eggs
Fresh eggs in bulk / kg
9.70
2.5
Source: China National Bureau of Statistics

 

Major meat retail price March 2014

 

Pork (Lean):
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       03/11/14-
03/20/14
B.       03/01/14-
03/10/14
C.       02/11/14-
02/20/14
D.       03/11/13-
03/20/13
(A-B)/B
(A-C)/C
(A-D)/D
28.66
28.96
29.90
29.86
-1.03%
-4.15%
-4.02%
 
Egg:
                                                                      RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        03/11/14-
03/20/14
F.        03/01/14-
03/10/14
G.       02/11/14-
02/20/14
H.       03/11/13-
03/20/13
(E-F)/F
(E-G)/G
(E-H)/H
9.48
9.40
9.66
9.86
0.85%
-1.86%
-3.85%
 
Chicken:       
                                                                              RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         03/11/14-
03/20/14
J.         03/01/14-
03/10/14
K.       02/11/14-
02/20/14
L.        03/11/13-
03/20/13
(I-J)/J
(I-K)/K
(I-L)/L
18.60
18.12
18.26
18.64
2.65%
1.86%
-0.21%
Source: China Animal Agriculture Association
 
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