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China Agricultural Newsletter - August 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

China moves to accelerate modernization of agriculture

 The Chinese central government released a guideline to make agriculture more intensive and environmentally friendly on Friday, as they seek to ensure adequate and safe food supply.

Land rights, property 'may be used as loan collateral'

 A pilot program will be launched allowing farmers to use their land and property as collateral for loans, according to the State Council, China's cabinet, the latest step to bolster support for the cash-starved farm sector.

China to extend duties on US chicken imports

 China's Ministry of Commerce (MOC) announced Friday it will continue to impose anti-subsidy duties on US white-feathered broiler chickens while a new investigation is under way.

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 to enhance export-tax rebate service

 BEIJING, Aug. 17 (Xinhua) - China's tax watchdog on Monday promised to improve the export-tax rebate service in a bid to facilitate foreign trade.

China restricts drone, high-performance computer exports

 Chinese tech companies will have to get official approval before exporting powerful drones or computers from August 15, as the government fears they could compromise national security.

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 produces less early rice in 2015

 China produced slightly less rice in the first harvest period of the year compared to 2014 due to a shrinking planting area, but the yield per hectare increased, official data showed on Friday.

Scientists: Gene resists drought and disease, increases crop yields

 Chinese scientists have discovered a gene that can help crops become more tolerant of heat and disease while increasing yields.

China's corn imports continues good showing in July

 A positive trend continues to persist for China’s corn imports as an increase was reported for a fourth month, reaching the highest in at least 10 years.

China's soybean yield to drop to 11 million MT in 2016

 China's soybean imports for 2014-15 is expected to reach a record-breaking total of 76 million metric tons, up 8 percent year on year, according to the latest projections released by the National Grain & Oils Information Center. The increase in imports is due to the higher domestic demand for soy meal as well as the expansion of crushing capacity that in turn promotes the growth in imports.


 Last month agricultural leader Rabobank focused, in its third-quarter report, on China’s declining sow and hog herds, which was pressuring pork supply. “The enormous cull of China’s herd over the last 18 months is pressuring production, pushing price up and industry margins into the black”, the agricultural lender then said.

China's pig prices show recovery and compensatory rise

 On August 5, the Information office of Ministry of Agriculture of the People’s Republic of China (MOA) released the analysis report on the rising pig prices. The panel of early-warning experts of MOA said, although the pig prices had risen for 18 consecutive weeks, the climb was only a recovery and compensatory rise. Later, the slaughter rate of fattened hogs will stay stable, and the supply will be assured.

MOC downplays pork price spike

 The government has played down the recent spike in the price of pork, after concern that the costliness of China's favorite meat could have implications for monetary policy.

China imports more pork during first half of 2015

 The decline in China’s breeding herd is the main cause of the continued rising trend in Chinese pork imports during the January to June period of 2015 with almost 320,000 metric tons entering the country, according to the German meat association, VDF. This represents a 7.6 percent increase from 297,400 tons in the same period of 2014 and 272,300 in 2013. Compared to the same period of 2014, the value of the imports was up just 4 percent at CNY13.6 billion (US$2.13 billion).

Additives cloud prospects for US hog farmers

 Hog farmers in the United States, the world's biggest exporter, are losing out on a big payday because of a feed ingredient that many have been giving pigs for the past 15 years.

China's influence in global beef market growing with demand

 Pork-loving China had not been known to be a large importer of beef, but since 2012 the country has seen a substantial rise in beef import demand due to strong economic growth and sharp declines in domestic production.

Namibian beef to enter Chinese market

 Namibian beef will soon enter the Chinese market as the two countries have signed an agreement early this month on the operational details for the trade, an official has said.

China's broiler producers challenged to be transparent

 The white feather broiler industry in China is in what Christopher Langholz, president, Cargill Animal Protein China, called “a financial and consumer trust crisis.”

China is top destination for Brazilian agri-food exports

 Brazilian agri-food exports totalled US$4.66 billion in July 2015, with China, The Netherlands, the U.S., Egypt and Venezuela the top export destinations. The Ministry of Agriculture, Livestock and Supply (MAPA) reports this sector accounted for 51 percent of all of the country’s total exports for the month in terms of value.

Ukraine hopes to expand agricultural cooperation with China

 Kiev attaches great importance to agricultural cooperation with China and hopes to expand the scale of their bilateral collaboration, Ukrainian Agriculture Minister Olexiy Pavlenko said on Tuesday.

Venezuelan government, and Chinese company assess agricultural cooperation

 Venezuelan Minister of Agriculture, Yvan Gil, met on Wednesday with representatives of Chinese company Yuan Longping High-Tech Agriculture Co. Ltd to assess cooperation agreements concerning crop production, livestock, fishing and vegetables.

Muyuan Foods to expand with new pig farm, feed facility

 China’s Muyuan Foods has signed a cooperation agreement with Tongxu County, Kaifeng City, Henan, to construct a pig farm that will produce 550,000 thousand head of pigs annually, and a feed facility which can produce 360 thousand metric tons of feed every year. The program involved US$96.66 million total investment.

BioMar and Tongwei sign final Joint Venture

 The BioMar Group and the Chinese Tongwei Co. have signed the final Joint-Venture agreement for the establishment a join fish feed company in China. 

PepsiCo, JD.COM to launch oats dairy drink in China

 PepsiCo announced the signing of a strategic cooperation agreement with China's JD.COM Inc (JD) to launch and sell Quaker High Fiber Oats Dairy Drink, its first premium dairy product in China, on the JD e-commerce platform.

Coca-Cola to invest 4 bln USD in China by 2017

 BEIJING, Aug. 21 (Xinhua) - Coca-Cola will invest 4 billion U.S. dollars into its China operations over the next three years, announced chair and CEO Muhtar Kent, on Friday at the site of a new plant in Hebei Province, north China.

Int'l investment fair to focus on Belt and Road

 An international investment and trade fair in the southeastern coastal city of Xiamen in September is expected to facilitate investment flows along the Belt and Road, a key theme for this year's forum.

China outbound direct investment jumps in Jan-July

 China's non-financial outbound direct investment (ODI) rose sharply in the first seven months of 2015, thanks to fewer government restrictions and strong ODI increases in countries including the United States, the Ministry of Commerce (MOC) said on Friday.


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



Current price


Percentage changes

as compared to last period

(%, August 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 August 2015

Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       08/21/15-

B.       08/11/15-

C.       07/21/15-

D.       08/21/14-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        08/21/15-

F.        08/11/15-

G.       07/21/15-

H.       08/21/14-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         08/21/15-

J.         08/11/15-

K.       07/21/15-

L.        08/21/14-












Source: China Animal Agriculture Association