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China Agricultural Newsletter - November 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

China bans cities from encroaching on nearby farmland

China will designate prime arable land near cities, believed to be prone to expropriation, as "permanent basic farmland" to safeguard food security, authorities announced on Monday.

China starts 2014/15 corn stockpiling scheme

China will begin to buy corn from farmers this week under an annual intervention programme, offter the same prices last year as it aims to support domestic market and boost rural incomes, Reuters reports.

Nation sets price for cotton subsidy scheme

China will pay farmers subsidies of 2,000 yuan ($330) per ton of cotton harvested this crop year outside its top producing region, potentially slowing a drop in output in the world's No.1 consumer of the fiber and further curbing demand for imports.

China ready to lift ban on Irish beef

Due to mad cow disease concerns, China has long-running bans on beef imports from all but six countries, namely Australia, Uruguay, New Zealand, Canada, Agentina and Costa Rica. However, following a recent meeting between Irish and Chinese officials in Beijing, the Chinese food safety authority, AQSIQ, has agreed to send a team of veterinary inspectors to audit Irish meat export plants and systems in early December. If all is well, Irish beef will be entering the vast Chinese market in 2015.

China to accelerate water projects

BEIJING, Nov. 25 (Xinhua) - China will step up construction of major water conservation projects, especially in rural areas and central and western regions. Chinese Premier Li Keqiang said on Monday that governments should accelerate 172 water conservation programs that have strong economic and social importance, during a visit to the Ministry of Water Resources.

Xi urges China-New Zealand cooperation in agriculture, animal husbandry

AUCKLAND, Nov. 21 (Xinhua) - Visiting Chinese President Xi Jinping said here on Friday that China and New Zealand have huge potential in cooperation in the two countries' agriculture and animal husbandry.

Central finance earmarks 2bln for grassland protection

China’s central government has allocated 2 billion yuan ($327 million) to encourage the protection of grassland ecology, changing livestock and husbandry development, and increasing farmer incomes, the Finance Ministry reports, noting that they will work with the Agriculture Ministry in evaluating the implementation of grassland protection through subsidies and rewards, based on central government methods. The focus will be on system building, work and achievements, with better incentives and restraint mechanisms, and ensuring that policies are followed.

Jilin invests $1.15b in agricultural infrastructure

As the slack farming season comes, Northeast China’s Jilin province has committed to invest 7.05 billion yuan ($1.15 billion) to improve its agricultural water conservation and ensure stable yields, to safeguard against drought or waterlogging.

China loosens outbound investment control

BEIJING, Nov. 18 (Xinhua) - Chinese government has relaxed its grip on outbound direct investment (ODI) as domestic enterprises begin to invest heavily abroad. The State Council, China's cabinet, released on Tuesday a much shorter list of ODI projects needing government approval to encourage enterprises to enter the international market.

Industry and Business Watch

China's agriculture under challenges: official

China's agriculture faces three challenges to achieve sustainable growth, said Han Jun, deputy head of the office for the Central Leading Group on Financial and Economic Affairs.

China's agriculture under challenges: official

China's agriculture faces three challenges to achieve sustainable growth, said Han Jun, deputy head of the office for the Central Leading Group on Financial and Economic Affairs.

More than 40% of China's arable land degraded: report

More than 40% of China's arable land is suffering from degradation, seriously reducing the country's capacity to produce food for the world's biggest population, Xinhua reported Tuesday.

China farm produce prices up slightly

China's farm produce prices in 36 large and medium-sized cities edged up slightly in the week ending Nov 16 compared with the previous week, the Ministry of Commerce said on Wednesday.

China's new barley breed sets yield record

Chinese agricultural scientists have developed a new highland breed of barley which yielded 5,265 kilograms a hectare, setting a new domestic output record.

China imported 1.14 million tons of corn from Ukraine since October

According to figures released by CNGOIC, China has ordered 1.14 million tons of corn from Ukraine since October as part of their loan from grain deal. With the latest purchase to be included, China would have imported a total of 1.32 million tons of corn from Ukraine this year.

China imports non-GMO corn from Bulgaria for the first time

China’s first imported non-GMO corn from Bulgaria, weighing 36,700 tons, has arrived at Shenzhen’s Shekou port earlier this week. It will be permitted for sales in China upon passing the various checks and quarantine.

China is US top soy importer and the Philippines the second biggest soymeal customer

The United States exported over 2 billion bushels of soy valued at more than US$30 billion in the 2013-2014 marketing year, according to the United Soybean Board (USB), quoting data from the US Department of Agriculture.

West Hope to build a RMB4 billion swine breeding facility with Italy's TWB Group

West Hope Group has signed an agreement with Italy’s TWB Group, which both parties with jointly invest RMB4 billion (US$653 million) in the span of 5 years, to build and develop a swine breeding facility and food safety supply chain system in China. They are determined to construct a production system that meets EU standards, to ensure the quality and safety of their products.

China's pork imports to hit a record 1 million tones in 2015

China’s pork imports next year will hit a record 1 million tones, 23.5% more than its estimated 2014 imports of 810,000 tonnes, says the latest forecast from the US Department of Agriculture’s Foreign Agricultural Service (FAS).

Brazil, China sign new poultry and pig meat trade agreement

The Brazilian Animal Protein Association (ABPA) and China’s inspection and quarantine services (CIQA) signed a new agreement on pig and poultry meat exports in mid-November.

Brazil to resume beef exports to China, Saudi Arabia

RIO DE JANEIRO, Nov. 18 (Xinhua) - Brazilian Agriculture Minister Neri Geller said Tuesday that beef exports to China and Saudi Arabia would resume next month after the embargo of Brazilian meat products by the two countries ends.

Shanghai plans to establish a million layers breeding farm

With the support of Shanghai Agriculture Department, Shanghai farm’s plan to establish a million layer breeding farm is progressing very smoothly.

Yili closes deal with DFA in setting up U.S. dairy plant

HOHHOT, Nov. 13 (Xinhua) - Inner Mongolia Yili Industrial Group, one of China's largest dairy providers, has signed a deal with U.S. milk cooperative Dairy Farmers of America (DFA) to set up a world class dairy plant in Kansas.

Yili to invest 327 mln USD in NZ dairy

HOHHOT, Nov. 21 (Xinhua) - Inner Mongolia Yili Industrial Group Co. Ltd., one of China's largest dairy producers, said Friday it will invest 2 billion yuan (327 million U.S. dollars) in four dairy projects in New Zealand.

New Hope Group to build million heads dairy farm in Australia

Fuelled by the historic China-Australia free trade agreement, New Hope Group has announced last week that the company will be investing AUD$500 million (US$432.4 million) in Australian agriculture and food products industry, including the construction of a million heads dairy farm in Australia.

China's leading dairy company and Harvard BIDMC medical center set up joint lab

Boston, Nov.18 (Xinhua) - On November 18, a laboratory for nutrition research jointly set up by China’s Feihe Dairy, a leading domestic baby formula manufacturer and the Beth Israel Deaconess Medical Center at Harvard Medical School (BIDMC) started operation.

Snack food enjoys healthy growth

Though the fast-moving consumer goods market has witnessed slower growth this year, the snack food segment has managed to buck the trend with good growth rates.

China's health food market: hard to open the door

With the largest consumer base in the world and an expanding economy, many international health supplement companies have focused on China.

New Zealand to help Chinese food giant in safey

China National Cereals, Oils and Foodstuffs Corporation (COFCO), the country's largest agricultural and food products supplier, has signed an agreement with a New Zealand government-owned food safety firm and a multinational business consultancy to improve China's food safety and quality.

Report: Catering companies scent signs of recovery

The catering industry has seen stirrings of recovery after struggling through the government's austerity campaign, but further innovations in services are necessary, the China Cuisine Association said on Wednesday in its annual report.

China's overseas investment to hit 1.25 trillion USD in next decade

BEIJING, Nov. 9 (Xinhua) - China's investment abroad in the next 10 years is expected to reach 1.25 trillion U.S. dollars, President Xi Jinping said on Sunday. He made the remarks while addressing the CEO Summit of the ongoing Asia-Pacific Economic Cooperation (APEC) meetings.

Chinese health food producer to acquire company in NZ

BEIJING, Nov. 23 (Xinhua) - Nanjing Sinolife United Co., one of the leading health food producers in China, announced plans on Sunday to buy a New Zealand company.

China state-owned realty firm to invest in food production in Australia

State-owned Chinese real estate firm Greenland said it was prepared to invest hugely in Australia, particularly in agriculture and dairy, after both countries sealed Monday a free trade agreement that will give the Australian agricultural sector a tariff-free access to the Chinese market and China greater access to investment projects in Australia.

Huiyuan Juice eyes Australian farms

China Huiyuan Juice Group Limited, the largest privately owned juice producer in China, plans to invest in the agricultural resources in Australia by acquiring one or two farms. The company is studying the acquisition details.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, November 1-10, 2014)

Rice

Japonica rice / kg

6.01

0.0

Flour

Strong flour / kg

5.63

-0.2

Flour

Standard wheat / kg

4.57

0.0

Soy products

Bean curd / kg

4.51

0.0

Peanut oil

5 Lin barrel bulk / litre

27.04

-0.1

Soyabean oil

5 Lin barrel bulk / litre

10.32

-1.4

Rape seed oil

Grade 1 in bulk / kg

13.65

0.2

Pork

Rump / kg

24.97

-0.2

Pork

Belly meat / kg

25.00

-0.2

Beef

Leg / kg

67.13

0.09

Mutton

Leg / kg

65.26

0.08

Chicken

Frozen fresh chicken / kg

20.81

-0.01

Chicken

Breast / kg

21.26

-0.03

Ducks

Frozen fresh duck / kg

17.85

-0.04

Eggs

Fresh eggs in bulk / kg

11.90

-0.10

Source: China National Bureau of Statistics

Major meat retail price November 2014

              Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       11/11/14-
11/20/14

B.       11/01/14-
11/10/14

C.       1011/14-
10/20/14

D.       11/11/13-
11/20/13

(A-B)/B

(A-C)/C

(A-D)/D

29.07

29.08

29.42

30.26

-0.03%

-1.19%

-3.93%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        11/11/14-
11/20/14

F.        11/01/14-
11/10/14

G.       10/11/14-
10/20/14

H.       11/11/13-
11//20/13

(E-F)/F

(E-G)/G

(E-H)/H

11.82

11.96

12.06

10.00

-1.17%

-1.99%

18.20%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         11/11/14-
11/20/14

J.         11/01/14-
11/10/14

K.       10/11/14-
10/20/14

L.        11/11/13-
11/20/13

(I-J)/J

(I-K)/K

(I-L)/L

19.73

19.74

19.66

18.10

-0.05%

0.36%

9.01%

Source: China Animal Agriculture Association

 
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