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China Agricultural Newsletter - October 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

Laws, Regulations and Policies

China maps out agricultural consolidation plan

 China is rolling out a major rural land reform which aims to promote large-scale farming and consolidate unused small patches of farm land under larger cooperatives.

China upgrade supervision on food, medicine

 China's supervision system for food and medicine must be upgraded, said a notice from the State Council on Thursday.

China maintains minimum wheat purchase price

 China's minimum purchase price for wheat will stand at 2,360 yuan (384.32 U.S. dollars) per tonne for 2015, unchanged from the previous year, the country's top economic planner said on its website Thursday.

Sinograin buys 30m tons of grain to stabilize prices

BEIJING- A grain glut has forced the Chinese government to buy up some 30 million tons ofwheat and early rice since late May this year, despite climbing inventories,according to the China Grain Reserve Corp(Sinograin) on Tursday. 

The Chinese government to pump RMB140 million into Henan's beef industry

 To speed up the development of beef and mutton production, the Ministry of Agriculture and the Ministry of Finance had organized and implemented a program this year to increase the number of ruminants.

Mainland suspends cooking oil imports from Taiwan company

 The Chinese mainland has suspended importing cooking oil products made by a Taiwan company involved in a food safety scandal.

China keeps sugar import quota unchanged

 The Ministry of Commerce (MOC) on Wednesday set the 2015 import quota for sugar at 1.95 million tonnes, remaining unchanged from the past decade.

MOA blasts labeling of non-GM food

 The Ministry of Agriculture (MOA) has accused some agricultural companies of spreading fears among the public by intentionally labeling their products "non-genetically modified," the Farmers' Daily reported on Tuesday.

Industry and Business Watch

China farm produce prices edge down

 China's farm produce prices in 36 large and medium-sized cities edged down slightly in the week ending Oct. 26 compared with the previous week, the Ministry of Commerce said on Tuesday.

Agriculture innovations feed China's economy

 Last week, the Chinese government considered ground-breaking reforms to boost the national economy and enhance its international marketplace through "rule of law." While many reforms were considered, those that support China's emphasis on food security are significant. Ensuring Chinese farmers have access to innovation and modern farming practices will ensure China's agriculture system can feed urban growth.

Water diversion project to boost Chinese grain output

 China's south-to-north water diversion project, expected to start operation in the coming days, will ease the drought that has been plaguing north China, greatly improving grain output, officials and experts have said.

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 1,004.5 kilograms per mu (0.0667 hectares).

China's soy imports to hit highest in six years

 According to the latest report from USDA, China’s soy imports for MY13/14 is estimated at 69 million tons, up from the 68 million tons in previous report. The report also forecasts China’s soy imports for MY14/15 to reach 72 million tons, which will be the highest in last six marketing years.

Brazil's soy export to China tops 28.6 million tones

 Brazil’s soy exports to China rose 4% to 28.65 million tones from January to September compared with the same period of 2013, according to official figures released Wednesday in Beijing.

Price gap between Chinese and imported corn widening

 The gap between prices of imported and local corn continues to widen in China, leaving the government worried about a spike in smuggling.

2014 World's top hundred global feed companies

 WATT Global Media had recently revealed the 2014 World’s top hundred global feed producing companies rankings. The ranking is based on last year’s production volume of more than 100 compound feed manufacturers worldwide.

US export of DDGS to China'in jeopardy'as corn falls to near zero

 US corn exports to China have become problematic after the latter started enforcing a zero tolerance policy for the genetically engineered MIR 162.

Swine feed production in the next 2-3 years to increase by 3-5%

 Production of livestock feed is directly connected to the development of the livestock industry, and with the increasing demand for meats, eggs and dairy products, and the continuous expansion of livestock industry in recent years, the feed industry has also been in a stage of rapid development.

China demand bolsters New Zealand red meat industry

WELLINGTON - New Zealand's red meat exports have surged in the last decade due todemand from China and despite recent "hiccups" in the bilateral trade,the New Zealand MeatIndustry Association(MIA)revealed Thursday.

China resumes pork exports to Russia; first shipment of 800 tonnes on the way

 After a 10-year break, China has resumed pork exports to Russia, the Russian consumer watchdog Rosselkhoznadzor said on its website.

Inner Mongolia directly imports 800 quality British pigs

 This is the first time Inner Mongolia is directly importing 800 quality British pigs, to be delivered to Wulanchabu.

4,404 top quality, purebred Holstein cows shipped from New Zealand to China's Beihai

 Worth over US$12 million, 4,404 top quality, purebred Holstein cows have been shipped from New Zealand to Beihai, Guangxi province, and are currently being quarantined as part of the inspection procedure.

Bitter days for China's sugar industry

 China's embattled sugar industry, facing pressure from foreign competitors and technological shortcomings, is caught in the middle of a year-long sales crisis.

China sees a retail growth of olive oil

 China's appetite for olive oil increased amidst a shrinking cooking oil market, according to a UK-based market research report sent to Xinhua on Friday.

Evergrande launches infant formula product

 Evergrande Group, a Chinese private conglomerate involved in property development, agriculture and sports, launched an infant formula on Monday following its acquisition of New Zealand dairy producer Cowala Dairy Ltd. last month.

Concerns rise as GMO debate shifts from field to dinner table

 The Chinese government is trying to convince Zhou Guangxiu that the corn in the congee she wants to feed her son is safe. That may not be easy.

Xinhua Insight: Companies, authorities move to tap rural e-commerce

 LANZHOU, Oct. 17 (Xinhua) - The burgeoning popularity of online shopping in rural China is driving e-commerce companies to the countryside and fueling local businesses.

Alibaba targets rural expansion with major investment

 Chinese e-commerce giant Alibaba Group plans to invest 10 billion yuan (1.6 billion US dollars) within three to five years to build thousands of facilities in rural China to tap rising demand in these areas, it announced on Monday.

China's COFCO completes two overseas acquisitions

 BEIJING, Oct. 28 (Xinhua) - China's state-owned foodstuffs conglomerate COFCO Corp. announced the completed acquisition of controlling stakes in two global agricultural commodities traders on Tuesday.

Costco to enter China via Tmall

 Warehouse club operator Costco Wholesale Corp said it will make its China market debut through the opening of an online flagship store on Alibaba Group Holding's Tmall Global, a wing of business-to-customer

Chinese overseas mergers, acquisitions surge

 GUANGZHOU, Oct. 27 (Xinhua) - Chinese enterprises completed a record 176 mergers and acquisitions (M&A) overseas in the first nine months of 2014, up 31 percent year on year, according to a report released by accounting firm PwC on Monday.


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



Current price


Percentage changes

as compared to last period

(%, October 1-10, 2014)


Japonica rice / kg




Strong flour / kg




Standard wheat / kg



Soy products

Bean curd / kg



Peanut oil

5 Lin barrel bulk / litre



Soyabean oil

5 Lin barrel bulk / litre



Rape seed oil

Grade 1 in bulk / kg




Rump / kg




Belly meat / kg




Leg / kg




Leg / kg




Frozen fresh chicken / kg




Breast / kg




Frozen fresh duck / kg




Fresh eggs in bulk / kg



Source: China National Bureau of Statistics

Major meat retail price October 2014

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       10/11/14-

B.       10/01/14-

C.       09/11/14-

D.       10/11/13-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        10/11/14-

F.        10/01/14-

G.       09/11/14-

H.       10/11/13-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         10/11/14-

J.         10/01/14-

K.       09/11/14-

L.        10/11/13-











Source: China Animal Agriculture Association