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China Agricultural Newsletter - November 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 Headlines: Xi expounds on guideline for 13th Five-year Plan

BEIJING, Nov. 3 (Xinhua) - The Communist Party of China (CPC) on Tuesday issued the full text of proposals for China's development from 2016 to 2020, setting a target of "maintaining medium-high growth."

China to pilot agricultural restoration programs: Xi

China will pilot programs to restore farm land through crop rotation, President Xi Jinping said in a statement on Tuesday.

China adopts revised Seed Law to spur innovation

China's top legislature on Wednesday adopted revisions to the Seed Law, the first change to the legislation since it was enacted in 2000

State Council issues plan for cultivating rural e-business

On Nov 9, the State Council General Office issued a guideline to promote the development of e-business in rural areas.

Industry and Business Watch

Major farm reform on near horizon

China is about to enter its second major period of agricultural reform since the 1980s, with the goal of shifting to large farms and "professionalized" farmers who are more productive than those working on a small scale, a high-level central government official said on Wednesday.

Closer eye on grain subsidies

The recent exposure of the widespread acquisition of a huge amount of State subsidies earmarked for grain planting has revealed the loopholes in oversight and management of these State funds.

Gansu to build national corn seed production base

Northwest China's Gansu province plans to build a national corn seed production base, with 20,000 hectares of land to be allocated for corn seed cultivation, says the local government.

China's cereal and oilseed imports expected to rise towards 2020

China’s 13th five-year plan for 2016-2020 anticipates a rise of cereal and oilseed imports into the mainland, in favor over rising local productions, according to an article by Spain’s ministry of agriculture.

COFCO planning alliances to boost grain imports

State-owned firm to team up with shipping companies to help bolster food securityChina National Cereals, Oils and Foodstuffs Corp, the country's largest food trader, is planning to import 3.5 million metric tons of grains every year through tie-ups with domestic shipping companies, in an effort to further bolster China's food security, a top official said.

UK seals barley deal

Britain has signed a deal worth up to 100 million pounds ($151 million) to export barley to China over the next five years, tapping into a fast-growing market for premium beer, a British minister said.

Rising EU pork exports in September driven by Chinese demand

EU’s pork exports in September 2015 had rose 18% higher in overall volume, to 166,300 tonnes, with China receiving over 60,000 tonnes of deliveries, according to AHDB pork.

New cloning facility in China capable of producing beef cattle

The future of China’s cattle production may soon find some of its supplies originating from a groundbreaking – and highly controversial –source.

Cargill's HatchBrood facility starts operation in Anhui, China

Production has begun in Cargill’s new HatchBrood plant – located in China’s Anhui Province – which possesses a total brooding capacity of 25 million chicks per year.

Growing interest in animal welfare in China

China’s veterinarians have begun to set out the country's first welfare standards for the production and slaughter of poultry and other livestock, including pigs, cattle and sheep.

High corn prices led to surge in Chinese imports of alternative feed grains

 High domestic corn prices in recent years have led to a massive surge in Chinese imports of sorghum, barley and distillers dried grains with solubles (DDGS) as feed mills searched for alternatives, the US Department of Agriculture (USDA) said.

Large Chinese feed companies see positive results

China’s feed industry grew more slowly over the first three quarters of 2015. Influenced by the productivity decline of the animal husbandry industry, the overall sales volume of the animal feed industry was dampened, resulting in slight decrease in revenues for the feed companies.

ADM expands feed-ingredient production in China

Archer Daniels Miland Company (ADM) has increased its capacity – to serve the growing regional demand for animal-nutrition products and value-added food-ingredients – through the operations of two new facilities in China.

Zoetis completes expansion in Suzhou, China

Zoetis recently held a ribbon-cutting ceremony to celebrate the completion of its new global production and supply facility in Suzhou, China.

Mongolian imports to quench forage thirst

China will import more than 400,000 metric tons of forage from Mongolia next year to cope withthe growing demand for dairy and other high-protein products, officials said on Wednesday.

Chinese infant formula plant launched in New Zealand

POKENO, New Zealand -- New Zealand Prime Minister John Key on Friday officially opened oneof the biggest completed Chinese investments in New Zealand, a state-of-the-art infant formulaplant in the village of Pokeno, just south of Auckland.

China launches national e-commerce platform to support agriculture sector

China launched a national e-commerce platform on Thursday to serve rural areas through supply and sales of agricultural products.

China, Vietnam see booming trade in agricultural products

China has imported $2.11 billion worth of farm products from Vietnam in the first nine months of the year, up 23.1 percent year-on-year, said Shen Danyang, spokesperson of the Ministry of Commerce, on Wednesday.

Online shoppers hungry for healthy options

Foreign retail giants are rushing to have their imported food products listed on china's leading e-commerce sites. At a sleek kitchenware store in Shanghai, Chinese celebrity chef Li Qiang is giving the audience a demonstration on how to prepare a perfectly deep-fried Mandarin fish that is slathered with a rich sweet and sour sauce.

13th China Agriculture Trade Fair opens in Fuzhou

Co-sponsored by MOA and the People's Government of Fujian Province, the 13th China Agriculture Trade Fair (CATF 2015) opened in Fuzhou, Fujian Province on November 7, 2015. Vice Premier Wang Yang gave specific instructions on leveraging the important role of the event to facilitate agricultural development. Zhang Baowen, Vice Chairman of the 12th Standing Committee of the National People's Congress, and Minister Han Changfu attended the opening ceremony.

 

16th China Green Food Expo held in Xi'an

The 16th China Green Food Expo was successfully held in Xi’an, Shaanxi province from October 29th to November 1st, 2015. The theme of the expo was Meeting at the starting point of Silk Road and opening a new green chapter. With dedicated design of exhibition areas and activities, the expo provided a fantastic show of green food industry achievements in five northwestern provinces and autonomous regions along the ancient Silk Road (Shaanxi, Qinghai, Ningxia, Gansu and Xinjiang).

Rabobank sees recovery in China's offshore agriculture deals as demand for food expands

China's appetite for offshore investment in food and agriculture is expected to rebound from a lull that has delayed some deals, given strong interest to meet growing domestic demand, Reuters reported Tuesday (US time), citing a leading banker.

Outbound investment may maintain upward trajectory

China’s direct investment overseas is expected to reach $367.3 billion by 2022. That will surpass the United States, making China the world’s largest source for foreign direct investment, according to a report by a top think tank.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, November 1-10, 2015)

Rice

Japonica rice / kg

6.19

0.3

Flour

Strong flour / kg

6.04

-0.2

Flour

Standard wheat / kg

4.76

-0.2

Soy products

Bean curd / kg

4.65

-0.2

Peanut oil

5 Lin barrel bulk / litre

27.35

-0.2

Soyabean oil

5 Lin barrel bulk / litre

10.05

-0.2

Rape seed oil

Grade 1 in bulk / liter

13.39

-0.1

Pork

Rump / kg

28.31

-0.9

Pork

Belly meat / kg

29.00

-1.0

Beef

Leg / kg

67.24

0.0

Mutton

Leg / kg

60.43

-0.8

Chicken

Frozen fresh chicken / kg

20.83

-0.1

Chicken

Breast / kg

20.32

0.4

Ducks

Frozen fresh duck / kg

18.08

-0.1

Eggs

Fresh eggs in bulk / kg

9.68

0.6

Source: China National Bureau of Statistics

Major meat retail price November 2015

        Pork (Lean):

                                                                           RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       11/11/15-
11/20/15
B.       11/01/15-
11/10/15
C.       10/11/15-
10/20/15
D.       11/11/14-
11/20/14
(A-B)/B
(A-C)/C
(A-D)/D
31.70
31.96
32.82
29.08
-0.81%
-3.41%
9.01%
 
Egg:
                                                         RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        11/11/15-
11/20/15
F.        11/01/15-
11/10/15
G.       10/11/15-
10/20/15
H.       11/11/14-
11//20/14
(E-F)/F
(E-G)/G
(E-H)/H
9.60
9.54
9.88
11.82
0.63%
-2.83%
-18.78%
 
Chicken:       
                                                                          RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         11/11/15-
11/20/15
J.         11/01/15-
11/10/15
K.       10/11/15-
10/20/15
L.        11/11/14-
11/20/14
(I-J)/J
(I-K)/K
(I-L)/L
19.68
19.68
19.80
19.74
0
-0.61%
-0.30%
Source: China Animal Agriculture Association

 

 
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