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China Agricultural Newsletter - October 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 prioritizes quality, efficient development in five-year plan

 BEIJING, Oct. 29 (Xinhua) - China will prioritize quality and efficient development in the next five years starting 2016, according to a communique released on Thursday following a four-day key meeting of the Communist Party of China (CPC).

State Council to draft'negative lists' for market access

 A State Council document on Oct 19 mapped out plans to draft and implement a series of “negative lists” for market access, as part of the government’s efforts to establish an open, competitive and well-regulated modern market.

China unveils plan to strengthen water and soil conservation

 The State Council has approved a 15-year national water and soil conservation plan. Submitted by the Ministry of Water Resources, the plan aims at building a comprehensive prevention and control system of water and soil erosion by 2030.

China slims down gov't pricing catalogue

 BEIJING, Oct. 21 (Xinhua) - China's top economic planner published the revised central government pricing catalogue on Wednesday, which cut items subject to price controls by 80 percent as part of efforts to allow the market a bigger role.

Timetable for pricing mechanism reform unveiled

 The State Council set a timetable for reforms to China’s pricing mechanism on Oct 15. China will lift price controls over basically all goods and services in competitive sectors by 2017, according to guidelines released by the State Council.

Liquor maker to join online sales market

 BEIJING, Oct. 30 (Xinhua) - Major revisions to China's Seed Law began Friday to better regulate the industry, which is second only to the United States.

China issues guideline for online-offline commerce connection

 BEIJING, Sept. 29 (Xinhua) - China's State Council on Tuesday issued a guideline to boost the connection between online and offline businesses to spur market vitality.

Industry and Business Watch

Premier Li stresses farmland water conservation

 BEIJING, Oct. 30 (Xinhua) - Chinese Premier  Li Keqiang has urged local authorities to improve farmland water conservation facilities to protect farmers' interests and accelerate the development of modern agriculture.

China targets state farms in agriculture modernization

 BEIJING, Oct. 13 (Xinhua) - The government has singled out state-managed farms as in need of an overhaul as it bids to modernize the country's agriculture.

China to buy more grain abroad, shift farming focus

China expects to increase its grain imports during the 13th Five-Year Plan period (2016-20) rather than continue to increase its farming capacity, according to Minister of Agriculture Han Changfu.

China Focus: Concern grows over corn surplus in northeast China

 China's corn industry is experiencing a surplus crisis after years of preferential policies caused rapid expansion and excessive corn supply.

Rise in soybean imports expected to continue

 China's soybean imports rose 13 percent in the first nine months of the year, compared with the same period last year, and officials said the trend is likely to continue through the period of the country's 13th Five-Year Plan (2016-20).

China's top farming produce sees export decline

 East China's Shandong Province, the country's main agricultural region, saw an unusual decline in exports of farm produce in the first three quarters of 2015.

China allocates US$203 million for animal agriculture

 A sum of nearly US$203 million has been allocated by the Central Budget to support China’s animal husbandry industry in 2015, an increase of US$29.63 million compared to 2014, reported the Department of Agriculture of Ministry of Finance of People’s Republic of China.

New laws on food safety, environment and advertising putting pressure on China firms

 China’s new food safety law is making meat and dairy companies jittery, with an official of the China Meat Association calling it “the toughest law” imposed on the industry.

Chinese pork production down 3.6 percent in 2015

 According to data released October 19 by the National Bureau of Statistics of China (NBSC), Chinese pork production during the last three quarters amounted to 38.28 million metric tons, decreasing 3.6 percent year-on-year.

China pork imports in Jan.-Sept. rise 22%

 Due to tight domestic supplies, pork imports into China increased 22% to 518,000 tonnes during the first three quarters, said the AHDB Pork, a division of the UK’s Agriculture and Horticulture Development Board.

China's meat processors regret on WHO cancer warning

 China's meat processors are angry at a report from a WHO research institute which said bacon, sausages and other processed meats are carcinogenic.

China starts import of Australian live cattle

 CHONGQING, Oct. 21 (Xinhua) - China on Wednesday started the importation of live cattle from Australia, a landmark deal that opens the doors to China's huge beef market for Australian farmers.

Chinese companies eye Australia's leading beef producer

 Several Chinese companies have flagged their interest in bidding for Australian property company S. Kidman and Co, one of Australia's largest beef producers which has a landholding covering 101,000 square kilometers in three states and the Northern Territory.

Chinese companies eye Australia's leading beef producer

 Several Chinese companies have flagged their interest in bidding for Australian property company S. Kidman and Co, one of Australia's largest beef producers which has a landholding covering 101,000 square kilometers in three states and the Northern Territory.

Chinese companies eye Australia's leading beef producer

 Several Chinese companies have flagged their interest in bidding for Australian property company S. Kidman and Co, one of Australia's largest beef producers which has a landholding covering 101,000 square kilometers in three states and the Northern Territory.

Chinese companies eye Australia's leading beef producer

 Several Chinese companies have flagged their interest in bidding for Australian property company S. Kidman and Co, one of Australia's largest beef producers which has a landholding covering 101,000 square kilometers in three states and the Northern Territory.

Chinese food company Delisi takes stake in Australian firm

 Delisi Food Co, a Shenzhen-listed food supplier, has bought a 45 percent stake in Australia's fourth-largest meat processor as beef imports into China continue to rise.

China's broiler industry to continue destocking in 2016

 In 2015, the number of grandparent breeding broilers imported into China has decreased to 800,000 and in 2016 the China Broiler Association (CBA) plans to keep the import of the breeding stock within 800,000, according to Jisheng Cao, president of Shandong Yisheng Livestock & Poultry breeding Co. Ltd., who spoke at the press conference of "The Nutrition of the Broilers and the Human Health" held on September 24 in Yantai, China.

Chinas egg market likely to struggle in October

 With the post-vacation sufficient supply of eggs, seasonal declining demand and the impact of a slowing economy, the consumption of eggs in China is likely to be adversely affected in October.

WellhopeAgri-Tech collaborates with India Nexus to expand international feed markets

 Liaoning WellhopeAgri-Tech Joint Stock Co., Ltd, better known as Hefeng Livestock Co., Ltd, has signed a memorandum of cooperation with India NexusFeed Co., Ltd. to establish a new company as part of their strategy to gain more market opportunities.

Fonterra plans tie-ups with local companies

 New Zealand-based Fonterra Co-operative Group Ltd, the world's largest dairy exporter, will not alter its growth strategies in China, despite price volatility and slower growth, a top company official said.

FrieslandCampina sets lofty growth target in China

 Dutch farming cooperative Royal FrieslandCampina NV, one of the five largest dairy companies in the world, is planning to increase its revenue from China to 2 billion euros ($2.2 billion) by 2020, according to a top company official.

Chinese buyers to acquire Australias largest dairy farm

 According to The Australian, two Chinese buyers, Herman Hu and Kenny Zhang, have acquired Australia’s largest and oldest dairy farm with a total investment of AUS220 million (US$160 million). Located in Tasmania, the 190-year-old dairy farm belonged to Australia’s largest dairy producer, Van Diemen’s Land Company (VDL).

Imported food more popular among Chinese: customs data

 Chinese appetite for imported food has been growing fast as the increasingly wealthy population seek more exotic eating, new data showed on Thursday.

Overcapacity hurts food processing innovation

 It is time to do something to prevent a quagmire, says Cargill China official. Overcapacity in agricultural processing has slowed the industry's development, hurting investments, R&D, innovation and earnings, according to an industry leader.

Carbonated drinks lose ground in China

 Newly published stats show the market growth for carbonated drinks has slipped to less than 1 percent in China, despite huge expenditures on advertising from Coca-Cola and its chief rival Pepsi.

Vegetable traders to boost exports to Russia, Central Asia

 China is planning to boost exports of vegetables to Russia and Central Asian nations to offset declining demand and rising anti-dumping duties from traditional importers like the United States, Brazil, Japan and South Korea, officials said.

US, China energy efficiency explored

 During the current energy revolution, China and the US need to make further joint efforts in clean energy and improving energy efficiency, as now have a combined $20 billion market with the opportunity to grow much larger, said David Danielson, assistant secretary at the office of energy efficiency and renewable energy at the US Department of Energy.

LatAm countries have potential to be strategic partners for China in agrifood sector

MEXICO CITY, Oct. 22 (Xinhua) - Latin American and Caribbean countries have the potential to become strategic partners for China in the agrifood market, said The Economic Commission for Latin America and the Caribbean (ECLAC) in its latest report.

China firms to set up FMD vaccine plant in Namibia

 WINDHOEK, Oct. 21 (Xinhua) - The government of Namibia is negotiating with two Chinese companies on establishing a plant to manufacture foot and mouth disease vaccine.

PepsiCo opens first Quaker Oats plant in China

 BEIJING, Oct. 23 (Xinhuanet) - PepsiCo Company announcedthe opening of its first Quaker Oats manufacturing facility in China lately, marking the continued expansion of the company’s nutrition business in a key international growth market.

Online markets key to China's rural growth

 China will step up efforts to promote the online sales of agricultural products as part of its broad plan to leverage e-commerce to alleviate property in rural areas, senior officials said on Friday.

Jingdong Group to build China's biggest e-commerce zone

 SHIJIAZHUANG, Nov. 2 (Xinhua) - Chinese e-commerce powerhouse Jingdong Group will build an e-commerce industrial park in a north China city as a regional integration plan gains steam.

Baidu takes a bite of COFCO's online fresh food retailer Womai

 Search engine major Baidu Inc is entering the e-commerce sector for fresh produce by investing $20 million in a local online food retailer.

Liquor maker to join online sales market

 Chinese premium white liquor maker Sichuan Swellfun Co Ltd is poised to tap into the booming e-commerce market by working with online liquor sales platform, and launching an exclusive product to be sold on the website.

Workshop on Agro-food Trade and Food Security held in Beijing

 The Workshop on Agro-food Trade and Food Security was held in Beijing on Oct. 19, 2015. It was co-organized by the Agricultural Trade Promotion Center (ATPC) of MOA, the Organization for Economic Co-operation and Development (OECD) and the International Centre for Trade and Sustainable Development (ICTSD).


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




Current price


Percentage changes

as compared to last period

(%, October 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 October 2015

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       10/11/15-

B.       10/01/15-

C.       09/11/15-

D.       10/11/14-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        10/11/15-

F.        10/01/15-

G.       09/11/15-

H.       10/11/14-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         10/11/15-

J.         10/01/15-

K.       09/11/15-

L.        10/11/14-











Source: China Animal Agriculture Association