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China Agricultural Newsletter - May 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

Laws, Regulations and Policies

China to intensify business registration reform

 China will intensify its reform efforts concerning business registration procedures to reduce administrative costs and enhance economic restructuring from the supply side.

Value-added tax fully implemented

 AFTER about a half-year delay, China extended the value-added tax to all industries on May 1, replacing the business tax.

Policy bank lends more to agriculture

 The Agricultural Development Bank of China (ADBC) provided more financial support to China's agriculture and rural development in the first quarter.

China establishes agricultural credit guarantee firm

 China has established an agricultural credit guarantee company to help solve longstanding financing problems in agriculture and rural areas, the Ministry of Finance (MOF) said on Thursday.

China releasing frozen pork from its reserves

 In an effort to help alleviate the shortage of pork in China and its subsequent higher prices, the country’s Ministry of Commerce (MOC) has been releasing frozen pork from its state reserves.

China to shake up 2,000 year state salt monopoly

 China is to shake up the state monopoly on production and sale of table salt, dismantling a system that has been in place for more than 2,000 years.

China working on tiered agricultural water pricing

 BEIJING, April 30 (Xinhua) - China has begun reorganizing and adding to its irrigation and water conservation facilities to facilitate a tiered pricing mechanism encouraging more economical water use by farmers.

Industry and Business Watch

Farm produce prices post slight declines

 Farm produce prices fell for a seventh consecutive week last week, the Ministry of Commerce said on Wednesday.

Record high crop yields, but trade deficits continue

 China's crop yields are expected to increase for the 13th consecutive year in 2016, but the agricultural products trade deficit, too, is likely to continue on the persistent price gap between imported and domestic products.

China's soybean industry on the rise

 China's soybean acreage will increase by 400,000 hectares this year as a result of a government-led initiative to increase the supply of domestic soybeans.

Tkachev hopes to start delivering Russian wheat to China soon

 BEIJING, May 3 /TASS/. Russia can start delivering wheat to China soon, Russian Agriculture Minister Alexander Tkachev said at a meeting with his Chinese counterpart Han Changfu.

Pork price controllable: MOC

 BEIJING, May 5 (Xinhua) - Pork prices will stay high this year, but price rises are controllable since the Ministry of Commerce (MOC) has taken measures to ensure a stable pork supply, a MOC official said on Thursday.

Chinese pork imports show no signs of slowdown

 Chinese pork imports in March more than doubled to a record 114,700 tonnes, compared with the same month last year, AHDB Pork said, citing the latest figures from China Customs.

US to sell pork to Chinese via Alibaba platforms

 The US pork industry is teaming up with Alibaba Group Holding Ltd to pitch more of its products to online shoppers in China.

Belarus plans to supply beef to China

MINSK, 6 May (BelTA) - Belarus plans to start supplying beef to China, BelTA learned from Alexei Bogdanov, the head of the main division for foreign economic affairs at the Agriculture and Food Ministry.

ABPA looks to China to expand poultry and pork businesses

 The Brazilian Animal Protein Association (ABPA), in partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil), is promoting a major initiative with Chinese market importers from May 5 to 7, during SIAL China, in Shanghai.

Hy-Line and Huayu to form merger

 The merger between Hy-Line International and Huayu Agricultural Science and Technology has been officially approved by the Ministry of Commerce last week.

Tyson looks to better reach consumers in China, India

 Demand for poultry in China is not quite what Donnie Smith, president and CEO of  Tyson Foods, would like it to be, but he remains optimistic about the company’s prospects there.

Feed industry grows with rising pork consumption in China

 China’s leading feed companies are highly profitable now, but many small, family-owned feed mills have closed in recent years.

Zhongding Dairy Farming to build dairy farm in Russia

 Dairy enterprises from Russia and New Zealand, and China’s Zhongding Dairy Farming have recently entered a joint venture to build a large-scale dairy farm in “Mikhailovsky”, Russia. 

Chinese firm to jointly manage new dairy complex in Russia

 China's Banner Infant Dairy Products will participate in managing the production of a newly established integrated dairy complex in Russia, in the Ryazan region, which is to be the country's largest, according to an agreement signed in Moscow on Wednesday.

Purefine aims to tap into thriving formula market

 Purefine Nature, a fast-growing Australian family brand, announced it will officially launch its formula milk products in the Chinese market to cater to the demand for foreign products.

Westland taps China's dairy sector

 New Zealand's Westland Co-operative Dairy Co plans to tap China's premium dairy market by selling milk and dairy products to consumers to tap the rising demand from Chinese.

Argentina keen to partner with China in agricultural machinery production

 FUENTES, Argentina, May 14 (Xinhua) - Argentina, one of the world's leading agricultural producers, seeks to integrate its agricultural machinery manufacturing industry into the global value chains with China's help.

China adjudged most attractive food, beverage export market: study

BERLIN - China was adjudged the most attractive export market for food and beveragecompanies, according to a study published Thursday.

Carrefour eyes expansion in online market as it brings e-commerce to Beijing

 Supermarket chain Carrefour is expanding further in China's online market, with the launch of e-commerce in the capital Beijing on Thursday.

In e-commerce rush, some companies are getting burnt

 Many companies are eyeing a piece of the e-commerce pie in China, but many are gettingtheir hands burnt in the process as well.

Temasek, CIC-KKR'advance to second round' of Yum China stake sale; unit valued at up to $11b

 Singapore's Temasek Holdings and a consortium that includes China Investment Corp (CIC) and KKR & Co have advanced to a second round of bidding for a minority stake in Yum Brands' China unit, people familiar with the matter told Reuters.

China to invest 1.9 billion U.S. dollars to help Kazakhstan make better food

 ASTANA, May 10 (Xinhua) - The central Asian country of Kazakhstan is the world's eighth-largest wheat exporter, but its soviet-era agriculture industry lacks the ability to turn agriculture resources into cash.

Cambodian, Chinese firms sign MoU on chemical fertilizer plant

 PHNOM PENH, May 4, 2016 (Xinhua) - Hann Khieng (R, front), managing director of Cambodian Petrochemical Company, shakes hands with Zhang Jun (L, front), chairman of China Huanqiu Contracting and Engineering Corp, in Phnom Penh, Cambodia, May 4, 2016. Cambodian and Chinese companies on Wednesday signed a Memorandum of Understanding (MoU) on the construction of a chemical fertilizer plant in southwestern Cambodia's Preah Sihanouk province. (Xinhua/Phearum)

Shanghai company buys trading company in Brazil

 Hunan Dakang Pasture Farming, a company of the Shanghai Pengxin group, has paid US$286 million to acquire 57 percent of Brazilian trading company Fiagril Ltd, reported financial news agency Bloomberg.

China spends record amount buying up foreign companies

 Chinese firms are on a record-breaking shopping spree, snapping up foreign firms like never before.

MOA holds briefing on 14th China Ag Trade Fair

 MOA held a briefing on the 14th China International Agricultural Trade Fair (CATF) in Beijing on May 27, 2016. Vice Minister Qu Dongyuattended and addressed the event, which marked the preparation work of the 14th CATF was fully launched to invite the participation of exhibitors.

China's largest wind company blows into Texas

 China-based Goldwind, the worlds largest wind turbine manufacturer, is buying into Texas for the first time with its largest wind farm in the U.S.


Average food prices in 50 cities May 11-20, 2016




Current price


Percentage changes

as compared to last period

(%, May 1-10, 2016)


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 May 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       05/11/16-

B.       05/01/16-

C.       04/11/16-

D.       05/11/15-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        05/11/16-

F.        05/01/16-

G.       04/11/16-

H.       05/11/15-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         05/11/16-

J.         05/01/16-

K.       04/11/16-

L.        04/11/15-











Source: China Animal Agriculture Association