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China Agricultural Newsletter - February 2015

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 embark on farm modernization program

 China’s central government has announced that modernizing the country’s agriculture is its first priority for this year, as it seeks to increase small farmers’ income and deal with food safety issues.

Labeling of GM food may become mandatory in China

 A news conference in Beijing by the international non-profit, International Service for the Acquisition of Agri-biotech Applications had reignited the debate over GM foods in China.

China farm machinery purchase subsidy rises

 BEIJING - China is offering more subsidies on farm machinery to maintain food self-sufficiencyas the rural workforce.

Hurdles have to be removed for China's food security

 The No 1 Central Document once again highlights the importance of modernizing agriculture. But many obstacles have to be overcome before agriculture can be truly modernized.

China vows supervision for scandal-hit milk industry

 China will step up monitoring of the raw milk industry this year to ensure safety and quality of the country's dairy products, the Ministry of Agriculture (MOA) said on Wednesday.

China's Guangdong province bans live poultry sales

 Authorities in the Chinese province of Guangdong have banned the sale of live poultry for one month due to an increased number of H7N9 avian influenza infections in humans.

HK resumes poultry imports from mainland

 Over 2,000 live chickens and doves raised in the Chinese mainland were shipped to Hong Kong for sale at wet markets on Wednesday, ending an import suspension imposed after birds in Hong Kong were found infected with bird flu in January.

China steps up grassland protection

 The improvement in grassland ecosystems has speeded up and productivity in some regions has recovered to the level of the 1980s, according to the Ministry of Agriculture.

Industry and Business Watch

China tightens check over TCM material market

 China's drug watchdog has vowed tighter supervision over the traditional Chinese medicine (TCM) material market and severe punishment for irregularities.

 

China relooks into national stockpile policy for grains

 China’s policy of stockpiling grains is being challenged by overflowing inventories and an escalation of cheaper imports, problems which the programme is a cause of.

China's farm produce prices rise ahead of holiday

 China's Ministry of Commerce (MOC) said Tuesday that farm produce prices in 36 major cities rose last week as demand rises before the country's traditional Spring Festival, which falls on Thursday.jing's cautious approach towards biotechnology.

China underlines cautious approach to biotech crops

 (Reuters) - China will continue to promote research into genetically modified crops while maintaining strict controls on safety of the technology, a top agriculture official said on Tuesday, underscoring Beijing's cautious approach towards biotechnology.

China's major grain-yielding province increases output

 Northeast China's Heilongjiang Province, the country's largest producer of commodity grain, increased annual output by 4 percent to 62.4 billion kg in 2014, local authorities said Monday.

Pre-Lunar New Year prices of pork and pork products dip in China

 Normally the price of pork in China spike up a few days before any festive season, but this time, in the run-up to the Chinese New Year, it’s the other way around.

China's pig prices drop 7% as market stabilizes

China’s pig prices have plunged 7% in a year following rising supply and government efforts to stabilize the pork market.

China's pork imports drop 3% in 2014

China had received 564,000 tonnes of pork imports in 2014, a 3% slide compared to the four years before.

Ireland says China agrees to lift ban on Irish beef

 (Reuters) - China has agreed to lift its ban on Irish beef, Ireland's Prime Minister Enda Kenny said on Friday, making it the only European country to be allowed to export beef to both the United States and China.

Costa Rica's beef exports to China rise 707% in January-November 2014

 The value of Costa Rica’s beef exports to China jumped 707% to US$9.3 million during the period January-November 2014 from $1.1 million in the same period in 2013, according to the Costa Rican Cattle Corporation (Corfoga).

7157 heifers from Chile has arrived in China

 China’s import of 7,157 heifers from Chile had arrived in Tianjin Tanggu port end of last month. Out of the 7,157 heifers, 11 had died in the course of shipping, and 6 had eye infection.

World's largest exporter of poultry to set up office in Shanghai

 Brazil’s BRF SA, the world’s largest exporter of poultry, has announced recently that it will be setting up a branch office in Shanghai, China. The new office will mainly be handing trade activities.

Foreign brands cashing in on China's booming milk market

 The market for high-end liquid milk in China is expected to expand at a double-digit rate, with retail sales expected to reach US$11.36 billion by 2017, spurred by the Chinese’ growing appetite for foreign brands. The uptrend started in 2013 when high-end liquid milk grew by 25.4%

Brand is the new way for China's agricultural dream

 BEIJING - High quality, modern production and food safety are China's top agriculturaldevelopment priorities this year and achieving them could be as simple as creating a brand,according to some agribusiness giants.

Brand is the new way for China's agricultural dream

 BEIJING - High quality, modern production and food safety are China's top agriculturaldevelopment priorities this year and achieving them could be as simple as creating a brand,according to some agribusiness giants.

Farm goals may boost exports from US: experts

 China has set modernizing farms and improving food safety as key priorities this year, and analysts say this could open up the mainland's agriculture sector to additional US exports.American Chamber of Commerce in China.

US farm firms urge easing of barriers to investment

 United States-based agriculture companies are seeking increased cooperation with China and urging further loosening of investment restrictions and trade barriers, especially in biotechnology, that will help secure safe, affordable food for Chinese consumers, said a report from the American Chamber of Commerce in China.

China has a healthy appetite for food imports

 China has long taken a cautious approach to controlling its staple grain import quota each yearto ensure food security,but when it comes to other foodstuffs, overseas agricultural products arebeing warmly  welcomed by the nation's fast growing middle class.

China's catering sector picks up after austerity adjustment

 Growth of China's catering sector picked up in 2014 after an adjustment prompted by the country's austerity drive. Revenue of China's catering sector totaled 2.786 trillion yuan (about 445.5 billion U.S. dollars) in 2014, up 9.7 percent from 2013, according to the latest data released by the China Cuisine Association (CCA).

Private Chinese firms encouraged to invest aboard

 Private Chinese firms will be more welcome to invest abroad compared with State-owned enterprises (SOEs), especially in new energy sectors, a former French prime minister said over the weekend. 

Statistics

Average food prices in 50 cities February 1-10, 2015

  

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, January 21-30, 2015)

Rice

Japonica rice / kg

6.11

0.01

Flour

Strong flour / kg

5.99

-0.01

Flour

Standard wheat / kg

4.75

0.01

Soy products

Bean curd / kg

4.59

0.01

Peanut oil

5 Lin barrel bulk / litre

27.04

-0.11

Soyabean oil

5 Lin barrel bulk / litre

10.15

-0.04

Rape seed oil

Grade 1 in bulk / kg

13.45

-0.09

Pork

Rump / kg

24.15

-0.15

Pork

Belly meat / kg

24.60

-0.06

Beef

Leg / kg

67.66

0.19

Mutton

Leg / kg

64.87

-0.10

Chicken

Frozen fresh chicken / kg

20.96

 0.00

Chicken

Breast / kg

21.10

-0.03

Ducks

Frozen fresh duck / kg

18.10

0.16

Eggs

Fresh eggs in bulk / kg

10.86

-0.07

Source: China National Bureau of Statistics

Major meat retail price February 2015

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       02/11/15-
02/20/15

B.       02/01/15-
02/10/15

C.       01/11/15-
01/20/15

D.       02/11/14-
02/20/14

(A-B)/B

(A-C)/C

(A-D)/D

28.50

28.40

28.64

29.90

0.35%

-0.49%

-4.68%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        02/11/14-
02/20/14

F.        02/01/15-
02/10/15

G.       01/11/15-
01/20/15

H.       02/11/14-
02//20/14

(E-F)/F

(E-G)/G

(E-H)/H

10.84

10.86

10.98

9.66

-0.18%

-1.28%

12.22%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         02/11/15-
02/20/15

J.         02/01/15-
02/10/15

K.       01/11/15-
01/20/15

L.        02/11/14-
02/20/14

(I-J)/J

(I-K)/K

(I-L)/L

19.56

19.48

19.44

18.26

0.41%

0.62%

7.12%

Source: China Animal Agriculture Association 

 
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