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China Agricultural Newsletter - May 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 issues guideline for agricultural development

 China's Ministry of Agriculture on Wednesday published a guideline on achieving "zero discharge" of agricultural waste by 2030.

China adjusts subsidy policy to help farmers

 China will improve agricultural subsidy policies in an effort to deepen rural reform, promote agricultural modernization and increase peasants' income, the Ministry of Agriculture (MOA) announced Thursday.

Stricter policies to protect grain reserve

 The State Administration of Grain will further tighten its policies on grain reserves and increase the size of the granaries to prevent pilferage and the losses due to substandard cereal storage facilities.

China cools land transfer fever

 As China encourages farmers to pool their land for better productivity, the country has gone on high alert for illegal seizures and speculation.

China to prioritize rural e-commerce development

BEIJING - Rural e-commerce development will be a top focus this year, as China aims to fostera new growth pillar in the countryside, the Ministry of Agriculture (MOA) said on Friday.

China to reduce more price controls on gov't catalog

 BEIJING, May 6 (Xinhua) -- China will further lift controls on the prices of commodities and services, said the National Development and Reform Commission (NDRC) on Wednesday.

China eyes investment funds to help 'capacity exports': NDRC

 BEIJING - China has established a new investment company to help domestic enterprises invest abroad and encourage the export of the country's advanced industrial capacity, the national economic planner said on Wednesday.

State Council issues FTZ foreign investment negative list

 A foreign investment negative list concerning free trade zones in Shanghai and Tianjin municipalities, and Guangdong and Fujian provinces, was issued by the State Council on April 20.

China to invest $900b in Belt and Road Initiative

 China announces plans to boost the Belt and Road trade by creating economic corridors and investing nearly $900 billion in countries along the route.

Industry and Business Watch

China expects bumper summer crops

 Favorable weather conditions and an increase in cultivated land will see large grain harvests this summer, the Ministry of Agriculture (MOC) said Monday.

China corn premiums tempt buyers to boost imports

 Tumbling global corn prices have raised the prospect of a pickup in imports by China, the world's second-largest consumer, as a widening discount to high domestic prices makes full-duty imports more economic.

Industry leaders sign agreement to create pig farm of the future in China

 Five global industry leaders have signed a memorandum of understanding with Jiangsu Guo Ming Agricultural Development Company at the China Animal Husbandry Expo in Chongqing, confirming the companies’ commitment to work together to open a new swine farm in Shuyang, Jiangsu Province, China.

EU pork exports to China increased by 23% in Q1 2015

 China finds it biggest pork supplier in the EU which raise its share of international deliveries to the country by 72%

US$2 billion to boost agricultural developments in China and Russia

 Agricultural development in China and Russia is set to benefit from a US$2 billion investment between both nations, according to the Russian Direct Investment Fund.

Asia's largest layer breeding hub starts operation

 The first batch of 100,000 US Hyline chicks had arrived at North Agriculture’s layer breeding farm in Lutai, northeast of Tianjin province, last week. With a capacity of 4 million layers, the layer breeding hub is said to be the biggest in Asia. After a construction period of more than a year, it is now officially in operation with the arrival of the first batch of chicks.

China and Holland to establish alliance for animal feed

 A feed alliance was established between China and Holland last month during the China Feed Expo 2015 held at Nanjing International Expo Centre, where the Dutch Meat & Feed Centre (DMFC) had organized a Holland Pavilion with seven Dutch exhibitors.

China, Brazil sign animal health & quarantine cooperation agreement

 Witnessed by Chinese Premier Li Keqiang and Dilma Rousseff, President of the Federative Republic of Brazil, Minister Han Changfu and Kátia Abreu, Minister of Agriculture, Livestock and Supply of Brazil signed the Agreement on Animal Health & Quarantine Cooperation between the Government of the People’s Republic of China and the Government of the Federative Republic of Brazil in Brasilia on May 19th, 2015.

Brazil beef re-entry into China market ruffles Australian farmers

 China has ended a three-year import ban on Brazilian beef, which could mean an annual US$500 million worth of bonanza for Brazilian cattle farmers.

Argentina to sell China pasture crop alfalfa

 BUENOS AIRES, May 5 (Xinhua) -- Argentina will sell China alfalfa as a step to expand cooperation between the two strategic partners, Argentina's Agriculture Ministry said Tuesday.

Rural e-commerce portal is first to target domestic farmers

 Compared with the rapidly spreading footprint of e-shopping in cities, China's rural areas remain e-commerce backwaters due to a lack of infrastructure, while market potential has stimulated new entrants

China scales back chemical fertilizer use

 China is scaling back use of chemical fertilizers to cut cost and improve efficiency. Starting from this year, pilot fertilizer-reduction programs will include corn grown in the northeast and parts of north and central China, vegetables produced in north China's greenhouses and apples grown in the northwest and Bohai Bay area, He Caiwen, an official with Ministry of Agriculture, said on Tuesday.

China's per capita dairy consumption remains low: Association

 China has its per capita consumption of dairy products remain relatively low, despite being one of the world's largest producers and consumers of such products, the Dairy Association of China said on Saturday.

Vegetable prices drop in major Chinese cities

 Farm produce prices in 36 major cities continued to fall last week due to abundant supply in most regions, official data showed on Tuesday.

Muyang plants seeds of growth abroad

After riding the domestic growth wave for more than two decades, Muyang Co Ltd, the largestChinese feed machinery manufacturer by revenue, aims to expand its footprint in South America.

Chinese-invested agricultural park unveiled in Cambodia

 A Chinese-invested agricultural park was inaugurated here on Sunday, aiming at broadening agricultural cooperation between the eastern Chinese city of Zhangzhou and Cambodia, officials said.

China Focus: Taste of growing e-commerce sweet for farmers

 BEIJING, May 8 (Xinhua) - May is the time for fresh, sweet cherries, and also an occasion for cheering Wang Xiaojing, a part-time online retailer from Yantai city of east China's Shandong Province.

China's food, nutrition security faces challenges:report

BEIJING - The International Food Policy Research Institute (IFPRI) said in a report Wednesdaythat China's food security faces pressure that warrants government action.

Chinese investment boosts U.S. economy: report

 NEW YORK, May 20 (Xinhua) - Growing Chinese direct investment is vital to the U.S. economy today, marking a new chapter in U.S.-China economic relations, a report said Wednesday.

Wal-Mart plans 115 new outlets

 US retailer Wal-Mart aims to grow in China by opening 115 new stores and renovating more than 50 outlets after their Chinese sales fell in the fourth quarter of last year.

Wal-Mart makes online shopping steps for growth

 Wal-Mart Stores Inc, the multinational retail conglomerate, launched an online-to-offline mobile platform in Shenzhen, Guangdong province, on Tuesday, looking for new business growth amid challenges brought about by the booming online shopping.

Alibaba vows to slash prices of wine imports

 E-commerce giant Alibaba is slashing prices of wine imports to China by offering direct sales to retailers, according to media reports Wednesday.

Alibaba steps up overseas investment

 BEIJING - Chinese e-commerce giant Alibaba Group is stepping up acquisitions of overseas companies to increase its presence in the global market after securing dominance at home, China Securities Journal reported on Monday.

Statistics

Average food prices in 50 cities May 11-20, 2015

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, May 1-10, 2015)

Rice

Japonica rice / kg

6.18

0.0

Flour

Strong flour / kg

6.03

0.2

Flour

Standard wheat / kg

4.76

0.2

Soy products

Bean curd / kg

4.63

0.0

Peanut oil

5 Lin barrel bulk / litre

27.16

0.0

Soyabean oil

5 Lin barrel bulk / litre

10.08

0.0

Rape seed oil

Grade 1 in bulk / liter

13.34

0.2

Pork

Rump / kg

24.06

1.1

Pork

Belly meat / kg

24.29

0.6

Beef

Leg / kg

66.98

0.2

Mutton

Leg / kg

62.87

-0.4

Chicken

Frozen fresh chicken / kg

20.72

-0.4

Chicken

Breast / kg

20.71

-0.4

Ducks

Frozen fresh duck / kg

18.15

-0.1

Eggs

Fresh eggs in bulk / kg

9.21

-0.8

Source: China National Bureau of Statistics

Major meat retail price March 2015

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       03/21/15-
03/31/15

B.       03/11/15-
03/20/15

C.       02/21/15-
02/28/15

D.       03/21/14-
03/31/14

(A-B)/B

(A-C)/C

(A-D)/D

27.70

27.98

28.74

27.84

-1.00%

-3.62%

-0.50%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        03/21/15-
03/31/15

F.        03/11/15-
03/20/15

G.       02/21/15-
02/28/15

H.       03/21/14-
03//31/14

(E-F)/F

(E-G)/G

(E-H)/H

9.90

10.18

10.88

9.60

-2.75%

-9.00%

3.13%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         03/21/15-
03/31/15

J.         03/11/15-
03/20/15

K.       02/21/15-
02/28/15

L.        03/21/14-
03/31/14

(I-J)/J

(I-K)/K

(I-L)/L

19.60

19.64

19.76

18.10

-0.20%

-0.81%

8.29%

Source: China Animal Agriculture Association 

 
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