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China Agricultural Newsletter - August 2014

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

Chinese govt to cut more administrative approvals

BEIJING - China is making efforts to ease market maneuverability by reducing the amount of administrative approvals required for businesses.The State Council announced Wednesday it had plans to cancel or decentralize more than 200 administrative approvals this year to unleash market dynamics.

Registered capital rules relaxed for some foreign firms

Some foreign companies in China can now use their registered capital to buy stakes in Chinese companies as part of an experiment to further loosen capital controls, the State Administration of Foreign Exchange said on Monday

Shanghai FTZ to build 8 intl trading platforms

SHANGHAI - The China (Shanghai) Pilot Free Trade Zone (FTZ) will set up eight international trading platforms by 2015, according to a work plan issued by the Shanghai municipal government on Wednesday.

Central bank ups credit support to agriculture

The People's Bank of China, the country's central bank, has set aside another 20 billion yuan ($3.24 billion) for a program designed to funnel credit into agriculture, it announced on Wednesday.

Merging of local quality watchogs piloted for food safety

Several Chinese cities have piloted the merging of quality watchdogs to ensure food safety, which has been troubled by scandals in recent years, with the latest meat tainting of a Shanghai subsidiary of a US company.

China bans US pork containing feed additive

China has banned imports of pork from six US processing plants and six cold storage facilities, effective from Wednesday, a Reuters report said on Tuesday (US time), citing the US Department of Agriculture.

China adopts stricter pesticide residue standard

BEIJING, July 31 (Xinhua) - A stricter standard on pesticide residue for farm produce in China will take effect on Friday. The new standard includes 3,650 indices detailing the maximum allowable residue for 387 pesticides on 284 types of food, according to the Ministry of Agriculture and the National Health and Family Planning Commission, which jointly issued the standard.

Chinese vice premier stresses cotton pricing reform

BEIJING, Aug. 31 (Xinhua) - Chinese Vice Premier Wang Yang has urged efforts to improve the experiment on a target price system for home-grown cotton.

Industry and Business Watch

China's developing agricultural sector draws M&As

The transformation of China's agriculture has attracted great attention in the merger and acquisition (M&A) space and capital markets, consultancy Deloitte said in a new report.

China's grain imports grow

China has increased the flexibility of its grain imports by purchasing more cereals from the global markets at cheaper prices to ensure sufficient domestic stocks, prevent unexpected supply risks and ensure long-term food security.

Drought could end 11 years of harvest growth

A severe drought in China's major crop-producing regions threatens to end 11 consecutive years of annual growth in the country's harvest. The drought, affecting 4 million hectares of farmland, has cut the agricultural water supply in provinces including Henan, Hubei, Shandong and Liaoning, and shows no sign of abating.

Cereal imports soar but China remains comfortable

Chinese leaders often remind people to keep the nation's "rice bowls" in their own hands , but the notion doesn't stop the country from adding more foreign food to their plates.

No word if GM rice certificates extended

The commercial cultivation of genetically modified rice in China may still be far in the future as the safety certificates of two varieties of GM rice have expired and it is unknown if they have been extended.

US rice could see potential market in China

A few years ago no one would have even considered exporting rice to China, but growers, exporters and international trade organizations in the US are starting to come around to the idea.

China's soy imports may reach 78 million tonnes next year

China’s import of soy may surpass USDA’s forecast next year as price fell and buying of alternative feed material decreased, reported Business Week.

Brazil's soy shipments account for half of China's imports

Brazil shipped 20.9 million tonnes of soy to China from January to July 2014, accounting for over half of China’s soy imports and an increase of 11.5%, China’s custom data indicated.

China ractopamine ban leads Tyson to seek new export markets

Tyson Foodsis seeking alternative export markets for pork products, after China implemented a ban on the import of pork products from several of Tyson’s pork processing facilities.

V&V Walsh signs meat supply deal with China's Grand Farm

V&V Walsh, a West Australia meat processor, has signed a deal to supply boxed meat to the largest red meat importer in China.

China to export 450,000 tonnes of chicken

China's chicken exports are expected to rise to 450,000 tonnes this year, according to the China Animal Agriculture Association on Sunday.

China cracks down on chicken feet scandal

Chinese authorities have seized more than 30,000 tonnes of tainted chicken feet across four provinces, the Washington Post reported.

US firm KKR investing in Chinese poultry company Sunner

Fujian Sunner Development (Sunner), a leading vertically integrated chicken meat producer in China, and U.S.-based global investment firm KKR have signed a definitive agreement under which KKR will invest approximately $400 million for an 18 percent stake in Sunner. KKR and Sunner will form a strategic partnership to expand the company's operations to provide safe and high-quality chicken products to Chinese consumers.

China's H1 feed production down 3% on-year

According to the China Feed Association Information Centre, the country’s feed production in H1 2014 totalled 83 million tonnes, down 3% on-year.

China maintains strong momentum in imports of feed ingredients

According to statistics from Customs General Administration, China’s July imports of imported feed ingredients remained strong

Failure, success of Chinese piglet feed formulas based on whey

As the Chinese pig industry becomes more intensive, western-type feed formulas are being used increasingly as a means of sustaining a high level of performance. Nevertheless, this practice is not without its own problems, especially when it requires imported materials to be used.

China Feed Study Team first to train with NCI's new equipment

The China Feed Study Team became the first group to do hands-on training with the Northern Crops Institute (NCI) Feed Center’s newly upgraded equipment during the Feed Manufacturing Technology course August 18-22 at NCI in Fargo, North Dakota. After three days at NCI, the group traveled to Portland, Oregon, for the wrap-up.

New report on Chinese feed enzyme industry available

A new report, “Research and Forecast of the Chinese Feed Enzyme Industry, 2014-2018,”is available from Research and Markets.

Investors acquiring thirst for dairy assets

A rising demand for milk draws financing from industrial giants, private equity firms and wealth funds. The nation's dairy sector has become a magnet for money, with the latest heavyweight investor being Xu Jiayin , chairman of Ever-grande Real Estate Group Ltd. The property tycoon is reportedly visited potential projects in the Inner Mongolia autonomous region and Heilongjiang province where the country's best dairy farms are located.

E-commerce facilitates agricultural and animal products distribution

The "8337" development strategy of Inner Mongolia autonomous region plans to develop the region into a production, processing and distribution base of green agricultural and animal products.

Retailers reap gains of growth in online food orders

Along with the rise of digital media, food retail outlets are undergoing a major shift toward online delivery. And a recent heat wave in China has pushed interest in ordering food off the Internet to all-time highs.

Three leading Asian agribusinesses join Australia-Sino agricultural partnership

Three leading agribusinesses in Asia: China’s New Hope Group, COFCO and Singapore’s Wilmar International, have joined the Australia-Sino 100-Year Agricultural and Food Safety Partnership, a deal that will position Australia as China’s food bowl, reported AFP.

Heinz recalls four batches of infant food in China

Ketchup maker H.J. Heinz Co has recalled some infant food in eastern China after it was found to contain lead in excess of the allowable limit, the company said on Monday.

McDonald's hamburgers back with new supplier

McDonald's restaurants in Beijing reintroduced hamburgers this week, but have revealed little about their new supplier, the Legal Mirror reported.

Wanda moves into e-commerce

China's leading property developer Dalian WandaGroup Co Ltd is about to set up an e-commerce joint venture with Internet companies Tencent Holdings Ltd and Baidu Inc.

Individuals could soon invest abroad, NDRC suggests

Chinese individuals might be allowed to invest abroad as early as this year. That development was quietly foreshadowed in a long document released on Tuesday by the National Development and Reform.

Second China-Inner Mongolia Agricultural and Animal Products Expo concludes

The second China-Inner Mongolia Agricultural and Animal Products Expo concluded on August 10. The five-day event witnessed 24.17 million yuan ($ 3.93 million) in total trade value, three times that of the previous session. Cooperation projects worth a total of 670 million yuan are likely to be signed in the future, and 110,000 people visited the expo.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, August 1-10, 2014)

Rice

Japonica rice / kg

5.99

0.2

Flour

Strong flour / kg

5.62

0.2

Flour

Standard wheat / kg

4.55

0.0

Soy products

Bean curd / kg

4.49

0.0

Peanut oil

5 Lin barrel bulk / litre

26.83

0.0

Soyabean oil

5 Lin barrel bulk / litre

10.63

-0.3

Rape seed oil

Grade 1 in bulk / kg

13.73

-0.1

Pork

Rump / kg

25.14

2.0

Pork

Belly meat / kg

25.13

2.0

Beef

Leg / kg

66.34

0.1

Mutton

Leg / kg

65.56

-0.1

Chicken

Frozen fresh chicken / kg

20.27

1.2

Chicken

Breast / kg

21.14

-0.2

Ducks

Frozen fresh duck / kg

17.50

0.7

Eggs

Fresh eggs in bulk / kg

12.32

4.0

Source: China National Bureau of Statistics

Major meat retail price August 2014

Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       08/11/14-
08/20/14

B.       08/01/14-
08/10/14

C.       07/11/14-
07/20/14

D.       08/11/13-
08/20/13

(A-B)/B

(A-C)/C

(A-D)/D

28.96

28.44

27.90

30.02

1.83%

3.80%

-3.53%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        08/11/14-
08/20/14

F.        08/01/14-
08/10/14

G.       07/11/14-
07/20/14

H.       08/11/13-
08//20/13

(E-F)/F

(E-G)/G

(E-H)/H

11.80

11.52

11.20

9.90

2.43%

5.35%

19.19%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         08/11/14-
08/20/14

J.         08/01/14-
08/10/14

K.       07/11/14-
07/20/14

L.        08/11/13-
08/20/13

(I-J)/J

(I-K)/K

(I-L)/L

19.20

19.12

19.16

17.96

0.42%

0.21%

6.9%

Source: China Animal Agriculture Association

 
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