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China Agricultural Newsletter - June 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

Political advisors brainstorm on next five-year plan

 BEIJING, June 17 (Xinhua) - China's senior political advisors wrapped up a three-day meeting to discuss a wide spectrum of issues and pool wisdom for the drafting of the country's 13th Five-Year Plan (2016-2020).

Regions simplify procedures for imports, exports

 Provinces and regions along the Silk Road Economic Belt are working together to boost trade by reducing the red tape required for exports and imports, specifically targeting inspection and quarantine regulations.

China earmarks nearly 5 bln yuan for agricultural investments

 China has earmarked a large fund to invest in agricultural industrialization projects this year, the Ministry of Finance (MOF) announced on Monday.

China earmarks 500 mln yuan for black earth protection

 HARBIN, June 24 (Xinhua) - China will spend 500 million yuan (80 million U.S. dollars) on black earth protection in northeastern provinces.

Checks on China's imported food to get tougher

 The food quality watchdog is set to further strengthen the regulation of imported foods, which are growing more popular following a series of food safety scandals in China.

China ready to trim stockpiles of cotton

 China said on Thursday it will start selling its massive cotton stockpiles this year, in a move likely to depress demand as the country's mills hold off buying in anticipation of sales of discounted fiber.

China supports entrepreneurship in rural regions

 BEIJING, June 10 (Xinhua) - China will support migrant workers, college graduates and army veterans who wish to return to their rural hometowns to start new businesses, part of a national campaign to boost entrepreneurship and employment.

Traceability of Shanghai pig offal to be enforced

 Shanghai's Food and Drug Administration's Rural Committee, Commerce Administration, and the Municipal Urban Administrative and Law Enforcement Bureau have announced that pig offal products will soon be subjected to new traceability rules.

Industry and Business Watch

China to conduct 3rd agriculture survey

 China will conduct its third national agriculture survey in 2016, following surveys in 1997 and 2006. The survey will collect basic information about agriculture, rural areas and farmers. The data will be used by the central authorities to inform decisions, according to a statement released on Monday by the State Council, China's cabinet.

China strives for bumper harvest amid El Nino concerns

 As farmers in north China harvest their wheat, and rain has battered south China, the distinct weather fronts have taken as a harbinger of El Nino.

GMO corn could see industrialized planting in 3 to 5 years

 Backers of GMO corn are pushing for security certification from Chinese government authorities. If approved, GMO corn could be industrially planted in as little as three years, according to the financial and business website caijing.com.cn.

China to build more silos to store bumper grain harvests

 China is embarking on building and upgrading existing silos to prevent huge wastage of grains that, as of last year’s estimate, run into 35 million tones yearly mainly because of lack of or subpar storage.

Output from China's animal husbandry industry exceeds RMB2.9 trillion in 2014

 According to the latest data released by the Ministry of Agriculture, the total output value from China’s animal husbandry industry in 2014 had exceeded RMB2.9 trillion. The proportion of China’s swine, layers and dairy cattle farms in 2014, were 42%, 69% and 45% respectively.

China authorities seize 100,000 tons of meat, poultry

 Authorities in China have seized more than 100,000 tons of smuggled chicken, pork and beef products, with some of those meat products being more than 40 years old.

China will increase imports of Brazilian chicken, pork

 Chinese authorities are on track to authorize one more pork plant and seven more poultry plants from Brazil to export their products into China.

Myuan sold 172,000 swine in May

 Leading swine producer Muyuan Foodstuff had sold 172,000 pigs in May, generating a sales revenue of RMB248 million (US$40 million), up 10.7% year-on-year.

WH Group sells Campofrio stake to Alfa for US$354 million

 China-based pig producer and pork processor WH Group has sold its entire equity interest in European processor Campofrio to Mexican company Alfa for $354 million in cash. The sale represents approximately 37 percent of the entire issued share capital of Campofrio.

Rivalry between meat processors COFCO, Shuanghui deepens

 Shuanghui Group, China’s biggest meat processor, is facing growing competition from state-owned COFCO which meat sales doubled within the past five years, Shanghai’s China Business News reports.

China's Zhengbang expanding pig and feed production

 Zhengbang Group, a leader in agricultural industrialization and agroprocessing in China, has announced that it will raise CNY1.139 billion (US$190 million) to expand its pig and feed production. Of the money the company raises, CNY732 million will be invested towards live pig operations, CNY64.5927 million will be devoted to new feed production sites, and CNY340 million will be used to repay loans from various banks.

China's sugar imports triple in May

 China, one of the world's top sugar buyers, imported 520,000 tons of sugar in May, triple the amount a year earlier, as refiners sought to benefit from cheap global prices.

Novel snack promotes China potato growing drive

 A company has introduced a novel potato version of a classic Chinese snack to Beijing supermarkets, as the government tries to stave off a potential food crisis by persuading people of the merits of potatoes as an alternative to rice and wheat.

Web boom helps farming grow

 Government's push of e-commerce in rural areas will stimulate online fresh food sales. A government-backed drive toward e-commerce can help open up the agricultural sector and generate a rapid increase in incomes for farmers.

Chinese firms interested in purchasing bulk Vietnamese farm produce

 The China Business Association in Ho Chi Minh City has expressed its interest in serving a bridge for Chinese firms to import farm produce in bulk from the Mekong Delta city of Can Tho, its President Miao Ren Lai told municipal officials on Wednesday.

IFC partners with New Hope Liuhe

 International Finance Corp, a member of the World Bank Group, is providing a long-term financing package of $60 million to support the expansion plan of the Singapore subsidiary of leading Chinese agribusiness company New Hope Liuhe Co.

Cargill establishes Technology Application Center in China

 Animal producers are working to deliver more protein to feed a growing population, while also using fewer resources. To help customers in China leverage and apply the best possible feed technologies to help them grow their businesses and wisely use resources, Cargill has established a new Technology Application Center (TAC) in Bazhou, Hebei, China.

Alibaba has big plans for small US businesses

 Alibaba Group Holding Ltd's Jack Ma said that the future of the e-commerce giant is to go global, opening up its platform to enable more small businesses in the United States to sell directly to China's middle-class consumers.

China's Fosun plans for investment in"Belt and Road"

 NEW YORK -- Fosun Group, one of the largest holding companies in China, plans to make more investment this year under the "Belt and Road" initiative, the company's CEO and vice chairman Xinjun Liang said here Tuesday.

China, Canada seek to increase agricultural trade

 China and Canada are looking to further boost their trade and technological cooperation in the agricultural sector as the two countries mark the 45th anniversary of diplomatic relations, according to experts and officials from the two countries.

Argentina, China to deepen cooperation in agriculture

 Officials from Argentina's Agriculture Ministry and China's State Administration of Grain (SAG) met in Buenos Aires on Tuesday to further strengthen bilateral ties, including grain production and commercialization.

China seeks to promote agriculture cooperation with Italy

 Visiting Chinese Vice Premier Wang Yang on Tuesday hoped China and Italy can expand agriculture cooperation, calling for more open market and closer cooperation on customs, quality control, and logistics.

Farm research offers gateway to China-New Zealand cooperation

 New Zealand researchers have begun a major project that will help build the sheep farming industry in western China and foster the trade relationship between the two countries.

Agricultural cooperation association between China, CEE countries launched

 The Association for the Promotion of Agricultural Cooperation between China and Central and Eastern European (CEE) countries was officially launched here on Friday.

2015 Swine Expo-an update

 The beautiful coastal city of Xiamen will be host this autumn to the three-day Swine Expo from September 19 to 21. The exhibition is organized by the Chinese Association of Animal Science and Veterinary Medicine, and is initiated by an eleven-strong conglomerate of collaborators, sponsored by Boehringer Ingelheim.

Statistics

Major meat retail price June 2015

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       06/01/15-
06/10/15

B.       05/21/15-
05/31/15

C.       05/01/15-
05/10/15

D.       06/01/14-
06/10/14

(A-B)/B

(A-C)/C

(A-D)/D

28.20

28.00

-

27.80

0.71%

-

1.44%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        06/01/15-
06/10/15

F.        05/21/15-
05/31/15

G.       05/01/15-
05/10/15

H.       06/01/14-
06//10/14

(E-F)/F

(E-G)/G

(E-H)/H

9.06

9.14

-

11.00

-0.88

-

-17.64%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         06/01/15-
06/10/15

J.         05/21/15-
05/31/15

K.       05/01/15-
05/10/15

L.        06/01/14-
06/10/14

(I-J)/J

(I-K)/K

(I-L)/L

19.42

19.42

-

19.08

0%

-

1.78%

Source: China Animal Agriculture Association 

 
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