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China Agricultural Newsletter - April 2016

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 to step up regulation on GM crops

 The Ministry of Agriculture on Monday vowed to beef up its supervision over genetically modified (GM) crops in order to protect human health, ecology and the environment.

China outlines roadmap for genetically modified crops

 China has mapped a plan for the future of genetically modified crops, giving priority to development of non-edible cash crops, according to the Ministry of Agriculture (MOA) Wednesday.

Administrative measures for the registration of formula foods for special medical purposes

 In March 2016, CFDA published the Measures to regulate registration of formula foods for special medical purposes produced and distributed in China, or imported into China. The Measures provide procedures and material requirements for the registration. The Measures are implemented on July 1, 2016.

AQSIQ revised risk level and inspection methods for imports of feed

 On December 7, 2015, the Administration for Quality, Supervision, Inspection and Quarantine (AQSIQ) released Announcement No.144, 2015 - “The Revision of the Risk Level and the Inspection/Quarantine Supervision Methods for Import and Export of Feed and Feed Additives.” The announcement adjusted risk levels and import supervision methods for certain types of animal feed and feed additives. This supersedes AQSIQ Announcement No. 79 of 2009.

China adds more commodities to cross-border e-commerce list

 BEIJING - China announced on Friday the second batch of commodities subject to a new tax policy on purchases of foreign products via cross-border e-commerce platforms.

China to tighten rules on baby formula

 China will tighten its regulation on baby formula after a recent scandal, an official statement said on Wednesday.

Govt to enhance rural e-commerce

 The government is mapping out plans to use the Internet to lower logistics and distribution costsand promote e-commerce in rural areas, a top official said on Friday.

Industry and Business Watch

China's farmland drops slightly in 2015

 The total area of China's farmland dropped slightly last year, but remains well above a government red line, official data said on Thursday.

Farm produce prices continue to ebb

 Farm produce prices continued the downward trend last week due to increasing vegetable supplies, the Ministry of Commerce said on Tuesday.

Subsidies essential to ensure farmers grow grain

 China's grain output was 621 million tons last year, the 12th consecutive year the country's grain yield increased. That is good news. But the government should not neglect the problems that exist behind the remarkable growth, Beijing Youth Daily said on Wednesday.

China still faces big food supply shortfall

 Despite bumper harvests, China still has a 9.9 million tonne shortfall in the amount of grain it produces and consumes annually, a senior official said on Tuesday.

China eyes GMO progress amid crop shrinkage, safety concerns

 Research and commercialization of genetically modified organisms (GMO) are expected to gain momentum in China after years of GM crop decline amid public safety concerns.

China's wheat output likely to drop in 2016

 China's wheat output is expected to see its first drop in 12 years, a report from the Ministry of Agriculture said on Friday.

Chinese corn farmers told to plant soybeans

 China will encourage farmers to plant more soybeans in an effort to cut the corn area by over 600,000 hectares this year, China Daily reported.

China plans to grow GM corn

 China plans to push for the commercial cultivation of pest-resistant genetically modified (GM) corn over the next five years.

China corn anomaly ends

 It is an anomaly that while China is awash in corn, prices are so high that it has to resort to importing alternative grains and, in fact, even corn that it has a surplus of, for use in the manufacture of animal feeds.

USDA: Chinas decision to end corn floor price shakes grain and feed market

 On March 28, 2016, the government announced an end to the floor price for corn. The resulting fall in corn prices following this announcement is still rippling throughout China’s agricultural sector. MY 2016/17 corn production is forecast to fall, while wheat and rice production are expected to remain strong. Imports of feed ingredients, such as sorghum, barley, and DDGS, will be the most immediate casualty of this policy change.

China's soybean imports hit 81.7 mln tonnes

 China imported 81.7 million tonnes of soybean products in 2015, 87.8 percent of its total demand, the Ministry of Agriculture (MOA) said Wednesday.

China increasing soybean production to meet demand

 China will plant more soybean and improve yield to fill a gap between supply and demand, the Ministry of Agriculture (MOA) said on Tuesday.

Chinas pork prices 50% higher than 2015

 The price of pork in China has been rising since early March this year, the Chinese Ministry of Agriculture said.

Pork prices bring squeals, grunts

 High cost of nation's favorite meat has knock-on effect that is helping the economy. 

USDA: China's pork imports to increase in 2016

 China leads the world in pork production and consumption and is also a major destination for pork exports. Import demand is supported by Chinese pork processors utilizing lower cost imports to produce products for the domestic market. To reflect the increased imports, post adjusted 2015 imports upwards to 1 million tons and further increased the 2016 forecast to 1.3 million tons. Post increased the 2016 beef consumption forecast to 7.5 million tons, up from the previous forecast of 7.4 million tons, and revised the 2016 beef import forecast upwards to 750,000 tons to reflect strong consumer demand.

USDA: China's pork imports to increase in 2016

 China leads the world in pork production and consumption and is also a major destination for pork exports. Import demand is supported by Chinese pork processors utilizing lower cost imports to produce products for the domestic market. To reflect the increased imports, post adjusted 2015 imports upwards to 1 million tons and further increased the 2016 forecast to 1.3 million tons. Post increased the 2016 beef consumption forecast to 7.5 million tons, up from the previous forecast of 7.4 million tons, and revised the 2016 beef import forecast upwards to 750,000 tons to reflect strong consumer demand.

US gets boost from Chinese demand for pork

 The United States exported 27.5 billion kilograms of pork to China in the first two months of this year – almost six times what it shipped in the same period last year, according to the UnitedStates Department of Agriculture.

China to remain a hot pork market

 China’s demand for imported pork is expected to remain strong for some time as Chinese sow numbers continue to fall, with many small farmers stopping production and reluctant to restart.

China eases market access for New Zealand halal meat

WELLINGTON - New Zealand's meat producers will be looking forward to a boost in exports toChina after the two countries signed a formal arrangement on the supply of halal meat, PrimaryIndustries Minister Nathan Guy said Tuesday.

Farmers rushing to e-commerce market: report

 KUNMING - Farm produce sales via Chinese e-commerce giant Alibaba topped 69.6 billionyuan ($10.7 billion) in 2015, up by 44 percent year-on-year, according to a report released onWednesday by AliResearch, the research arm of the Alibaba Group.

China's cross-border e-commerce bids farewell to 'tax-free' age

 BEIJING - A change of China's tax policy on retails sales on cross-border e-commerce platforms has triggered mixed feelings among buyers and sellers as the policy is expected to raise retailprices.

EU eyes Chinese market to alleviate agri-food crisis: commissioner

 The European Union (EU) looks forward to boosting agri-food exports to China and other parts in Asia as it seeks new markets to offset the loss of sales to Russia and cope with overproduction, said EU agriculture commissioner Phil Hogan.

China remains major consumer of Vietnamese farm products

 HANOI, April 26 (Xinhua) - China remained major consumer of Vietnam's farm products in the first three months of 2016, according to a report released by Vietnam's Ministry of Agriculture and Rural Development (MARD) on Tuesday.

Myanmar's rice export to China expected to rise after water festival

 Myanmar's rice traders expected the country's rice export to China to rise after water festival, official media reported Friday.

Australian wine exports to China up 64%

 SYDNEY - Australian wine exports to China have lifted 64 percent in the past 12 months, according to a report released on Monday.

Chinese agribusinesses to hold 'match-making' event in New Zealand

 WELLINGTON - Leading Chinese agribusiness representatives will gather in Auckland next month for a new event to promote New Zealand agricultural technology, products and services.

New Hope aims to be the leader in high-end meat industry

 According to a recent statement from the chairman of New Hope Group, Liu Yonghao, the Zhejiang provincial government and the Australian Trade Commission have officially signed a memorandum of cooperation last week regarding the Sino Australia Free Trade Industrial Park which the New Hope Group has invested in.

Sichuan Giastar Group establishes strategic partnership with Pipestone System

 Based in Chengdu, feed manufacturer and breeding stock producer, Sichuan Giastar Group, has entered a strategic partnership with Pipestone System, one of the largest and most advanced swine breeding technical services provided in the United States.

Zhengbang breaks ground in Egypt

 China’s Zhengbang Group has been actively venturing overseas in recent years, settling up modern agricultural plants in Myanmar, Russia and now, Eygpt.

Chinese dairy giant unveils New Zealand-made infant formula

 Chinese dairy giant Yashili launched its New Zealand-made infant formula on the local market Thursday as the first step towards establishing a global brand.

2016 China Agriculture Outlook Conference held in Beijing

 The 2016 China Agriculture Outlook Conference was held in Beijing on April 22-23, providing the outlook of the market trends of major agricultural products for the next 10 years in China. The Conference highlighted the supply side reform in agriculture driven by market demand and released the China Agriculture Outlook Report (2016-2025).

Statistics

Average food prices in 50 cities April 1-10, 2016

 

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, March 21-30, 2016)

Rice

Japonica rice / kg

6.26

0.0

Flour

Strong flour / kg

6.07

0.0

Flour

Standard wheat / kg

4.91

0.6

Soy products

Bean curd / kg

4.71

-0.2

Peanut oil

5 Lin barrel bulk / litre

27.58

-0.1

Soyabean oil

5 Lin barrel bulk / litre

9.94

0.1

Rape seed oil

Grade 1 in bulk / liter

13.74

-0.2

Pork

Rump / kg

31.19

0.9

Pork

Belly meat / kg

31.86

0.8

Beef

Leg / kg

66.91

-0.3

Mutton

Leg / kg

59.87

-0.2

Chicken

Frozen fresh chicken / kg

22.02

0.1

Chicken

Breast / kg

21.07

-0.8

Ducks

Frozen fresh duck / kg

18.23

0.2

Eggs

Fresh eggs in bulk / kg

9.11

-0.3

Source: China National Bureau of Statistics

Major meat retail price April 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       04/11/16-
04/20/16

B.       04/01/16-
04/10/16

C.       03/11/16-
03/20/16

D.       04/11/15-
04/20/15

(A-B)/B

(A-C)/C

(A-D)/D

34.46

34.28

33.22

-

0.53%

3.73%

-

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        04/11/16-
04/20/16

F.        04/01/16-
04/10/16

G.       03/11/16-
03/20/16

H.       04/11/15-
04//20/15

(E-F)/F

(E-G)/G

(E-H)/H

8.9974

9.0032

9.20

-

-0.06%

-2.20%

-

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         04/11/16-
04/20/16

J.         04/01/16-
04/10/16

K.       03/11/16-
03/20/16

L.        04/11/15-
04/20/15

(I-J)/J

(I-K)/K

(I-L)/L

20.04

20.00

19.88

-

0.20%

0.81%

-

Source: China Animal Agriculture Association 

 
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