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China Agricultural Newsletter - July 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

Laws, Regulations and Policies

News Analysis: China passes fresh policy support for trade growth

 BEIJING, July 16 (Xinhua) - After a disappointing trade sheet for the first half of the year, the Chinese government has stepped up support for the sector with a fresh package of policies, which are expected to nourish the nascent recovery seen in June.

China strives for eco-friendly farming

 China will cap fertilizer and pesticide use and better water conservation in the next five years as it pushes for greener agriculture, the Ministry of Agriculture said on Saturday.

Strategy outlined to prevent, treat soil pollution

 The Chinese environmental authority is to propose an action plan for prevention and treatment of soil pollution. This follows publication of an air pollution control action plan in September 2013 and a water pollution control action plan in April.

China to cut down corn acreage in 2016:agriculture minister

 China, the world’s second largest corn producer in 2014, has apparently reached the zenith of its corn storage. 

Officials step up moves against 'zombie meat'

 A crackdown on the illegal trade in smuggled frozen meat is being intensified after reports of expired and rotten supplies being brought into the country and served in restaurants.

Chinese central government allocates RMB1.2 billion to support livestock breeding

 To aid and improve the current standards of livestock breeding and promote healthy growth in the livestock industry, the Chinese central government is setting aside a total subsidy sum of RMB1.2 billion (US$193 million) to encourage farmers to invest in breeding higher quality livestock.

China to resume importation of buffalo meat from India

 China will be sending an inspection team to India next month preparatory to the resumption of meat imports, which have been banned over foot-and-mouth disease issue.

Nation to sell 1 million tons of cotton reserves

 China will auction an initial 1 million metric tons of cotton from its bulging State stockpiles over the next two months and will also consider purchasing when the harvest starts later this year, the country's top economic planner said on Tuesday.

Industry and Business Watch

China sees record summer grain output, but concerns remain

 China's yields of summer grain reached a record high in 2015 after 11 straight years of increase, but problems are still clouding the world's most populous country.

China's monthly corn import spikes to biggest record in a decade

 China has witnessed incoming corn shipments of 872,928 tonnes in June this year, a jump from the 404,102 tonnes volume seen in May. The amount represents the mainland’s biggest monthly corn import in at least 10 years, just before US prices for the grain rose.

Heilongjiang struggles to save its troubled corn processing industry

 Corn deep processing enterprises in Northeast China's Heilongjiang Province have been struggling since 2008, when the central government started a temporary purchasing and storage policy there. The price support policy benefits farmers, but also hurts local processing enterprises, putting many of them in financial difficulties. Local governments and enterprises are now working toward improving the situation. Global Times reporter Liu Tian reports on the situation from Suihua, south-central of Northeast China's Heilongjiang Province.

Soaring pork prices ease farmers'burden

The US and EU may benefit from the continuing decline of sow and hog herds in China, the latest Rabobank pork quarterly report said. 

China's pork production under pressure - Rabobank report

 The US and EU may benefit from the continuing decline of sow and hog herds in China, the latest Rabobank pork quarterly report said.

49 detained for frozen meat smuggling

 More than 200 tonnes of smuggled frozen meat has been seized by coast guard in south China's Hainan Province. Forty-nine suspects, six vehicles and a boat were seized at the same time, the provincial coast guard authority said on Tuesday.

Why beef farmers struggle to cope, despite rising demand

 Pork remains the dominant meat in China. However, along with the acceptance of and enthusiasm for many other types of Western food, demand for beef has been rising for years.

Australia signs live cattle export deal with China

 CANBERRA, July 20 (Xinhua) - Australian Minister of Agriculture Barnaby Joyce has announced a breakthrough in live cattle export trade negotiations with China on Monday.

China markets drive tariff savings for New Zealand meat exports

 WELLINGTON, July 15 (Xinhua) - New Zealands free trade agreements (FTAs), particularly those with the Chinese mainland and China's Taiwan, are paying off for the country's meat exporters, an industry group said Wednesday.

China becomes principal destination for Argentinean meat exports

 BUENOS AIRES, July 27 (Xinhua) - China has become the principal destination for Argentina's meat exports, taking 35 percent of the total, according to Argentina's Ministry of Agriculture, Livestock and Fisheries.

China broiler companies face losses in 2015 first half

 Three of China’s four big listed broiler companies - Fujian Sunner Development, Yisheng Livestock & Poultry Breeding, and Shandong Minhe Animal Husbandry -- recently released their performance report for the first half in 2015. The reports showed that the entire chain of the Chinese broiler industry is facing a major loss.

CP Group, Jilin province plan poultry plant

 Charoen Pokphand Group (CP Group) and the government of Jilin province is planning a Jilin Chia Tai Foods Co. Ltd. poultry plant project, one of three agricultural industrialization projects in an agreement signed by both entities.

Cargill China's first aquatic feed mill opens

 Cargill Feed (Yangjiang) Co. Ltd. has opened in China. The new mill was in line with the strategy of Cargill China for aqua feed; it is the first aquatic feed mill, as well as the 33rd feed mill for Cargill China in China.

Luoyang Huizhong Biotech invests in poultry vaccine lines

 China’s Luoyang Huizhong Biotech Co. Ltd. has invested CNY150 million (US$24.5 million) to build six new vaccine production lines in the Luolong High Tech Industry Development Zone.

China to build world's largest dairy site

 China has begun work on the construction of a 100,000-head dairy site to supply Russia with milk and cheese.

China's milk powder import falls 49.1% year-on-year in January-May period

 The total import of milk powder in China from January to May is 314,000 tonnes, down 49.18% year-on-year. It is valued at RMB870 million, a decrease of 72.13% from last year.  

Rainstorms bump up veggie prices

 Recent rainstorms in southern China have caused economic losses of around 35.3 billion yuan ($5.69 billion), Beijing-based newspaper the Economic Information Daily reported Thursday.

Beijing World Potato Conference highlights research and development

 Research and development was at the top of the agenda at the ninth World Potato Conference in Yanqing, Beijing. The three-day event, which ends on Thursday, ran alongside the China International Potato Exposition and is the largest global potato conference in terms of scale and content.

China, Canada seek to increase agricultural trade

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

Food producer COFCO looks to expand global reach

 With two major acquisitions closed in October 2014, COFCO is building across five continents. "COFCO (which stands for China National Cereals, Oils and Foodstuffs Corp) is the first Chinese food corporation to achieve the scope of 'from farm to table' operation in China, from planting and financing farmers to processing, manufacturing and more," said Liu Mengze, COFCO's president of US operations. "However until last year, we were mostly doing basic buying overseas."

Wal-Mart buys out YHD in online push

 Wal-Mart Stores Inc on Thursday took full control of Chinese e-commerce firm bypurchasing the balance 49 percent stake that it did not already own to further accelerate its onlinepresence in the country. launches duty-free shopping platform

 HANGZHOU, July 28 (Xinhua) -, an online shopping platform for overseas goods under e-commerce powerhouse Alibaba, launched an international duty-free shopping platform on Tuesday.

China outbound direct investment surges in H1

 BEIJING, July 16 (Xinhua) - China's outbound direct investment (ODI) increased sharply in the first half of 2015, thanks to less government restrictions, an official with the Ministry of Commerce (MOC) said Thursday.


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




Current price


Percentage changes

as compared to last period

(%, July 1-10, 2015)


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 / liter




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 July 2015

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       07/01/15-

B.       06/21/15-

C.       06/01/15-

D.       07/01/14-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        07/01/15-

F.        06/21/15-

G.       06/01/15-

H.       07/01/14-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         07/01/15-

J.         06/21/15-

K.       06/01/15-

L.        07/01/14-











Source: China Animal Agriculture Association