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China Agricultural Newsletter - July 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 resolutely implement supply-side structural reform

 BEIJING, July 26 (Xinhua) - As China's economy faces continued downward pressure and settles into a "new normal" stage, supply-side structural reform becomes ever more important, according to a statement released by the Political Bureau of the Communist Party of China (CPC) Central Committee after meeting Tuesday.

China vows investment, financing reform

 BEIJING, July 18 (Xinhua) - China will overhaul its investment and financing system to stimulate market vitality amid the economic downturn, according to a document released Monday by the central authorities.

Strengthening regulation of farming crucial to food safety: lawmakers

 BEIJING, July 1 (Xinhua) - Legislators on Friday called for better regulation of cultivation and breeding to ensure that food safety begins at the source.

China okays D-limonene as crop pest control for the first time

 The Chinese Ministry of Agriculture recently released a list of pesticide products that will be granted registration, of which, ORO AGRI International Limited will receive a temporary registration of its 92% D-limonene technical and 5% D-limonene AS, for the control of Bemisia tabaci in tomatoes. 

China eases investment rules in free trade zones

 BEIJING, July 19 (Xinhua) - The Chinese government has decided to ease investment rules in four free trade zones (FTZs), temporarily allowing foreign investors to found wholly-owned enterprises in a number of fields,including iron and steel production and gas station operations, according to the central government website on Tuesday.

Industry and Business Watch

Farm produce prices post mild declines

 Farm produce prices posted mild declines last week, the Ministry of Commerce said on Tuesday.

Summer crop yield set to decline

 China's summer crop yield is set to drop for the first time in six years as a result of a reduction in acreage, unfavorable weather conditions and adjustments in the crop structure, according to analysts.

Digitizing China's Agriculture Industry

 'Internet+ Agriculture' is the newest and more dynamic approach to accelerating the development of modern agriculture. Through creative applications of information technology, the construction of an agriculture demonstration area, and the establishment of a social service platform, the agriculture industry will be transformed to achieve a wide array of social and economic benefits.

Food safety situation still a concern: Top legislature

 The top legislature said Thursday that China's food safety situation remained "severe," and called for better supervision and food safety standards.

Chinese hybrid rice produces record-breaking yield

 With an actual yield of 832.1 kilograms per mu (0.0667 hectares), scientist Yuan Longping’s rice cultivation has broken a world record for the yield of “double-season” early rice. This is a step toward success for a project focusing on the production of double-season early rice in southern China.

USDA Beijing: MY16/17 China's Soybean Imports to Hit 86 Million Metric Tons

 In anticipation of higher demand for industry feed and protein meal as a result of a recovery in swine production and steady growth in the poultry sector, China’s soybean imports are forecast to hit a record of 86 million metric tons (MMT) in MY16/17, up from the estimated 83 MMT in MY15/16.

China's hog prices will rise again due to short supply: analysts

 China's hog price is expected to stay at high levels at least until the middle of 2017 due to short supply, providing opportunities for foreign suppliers, analysts said.

Rabobank: China to increase pork in imports

 China’s rising pork prices are again the centre of attention in the global pork market. The country’s pork skyrocketed at the start of 2016, reaching an all-time high of over RMB20/kg (US$2.99).

New Zealand meat firm puts back date for China partnership

 New Zealand's biggest meat cooperative and China's biggest meat processor have agreed to postpone their tie-up deal by three months as New Zealand regulators continue to assess it.

Infant formula imports skyrocket since scandals

 Imports of infant formula powder have more than tripled in the past five years after a series of food safety scandals involving domestically produced dairy products, according to China's top quality supervision authority.

China's herbicide market suffers depression during peak season in H1 2016

 By CCM - It should be a peak season now for the herbicide market in China; however, the market is in a very bad shape due to different difficulties in the pesticide market, according to analyst CCM.

Slovenia encouraged to export farm products to China

 Slovenia has been encouraged to export its farm products to the Chinese market by visiting Chinese deputy agriculture minister Chen Xiaohua when he met with his corresponding Slovenian host here on Monday.

China, Mongolia agree to boost cooperation in agriculture, infrastructure construction

 ULAN BATOR, July 14 (Xinhua) - China and Mongolia agreed to speed up the alignment of their development strategies and boost bilateral practical cooperation in major fields for better accomplishment of mutual benefits and win-win results, visiting Chinese Premier Li Keqiang said here Thursday.

Merger creating grain trading force in China to compete with ABCD companies

 The State-owned Assets Supervision and Administration Commission on Friday announced the merger of China National Cereals, Oils and Foodstuffs Corp with Chinatex Corp, in the process creating a bigger rival to compete with the so-called ABCD companies.

China's COFCO to open Canadian grain office by autumn

 Winnipeg | Reuters - China’s COFCO Agri will open a Canadian crop trading office in Winnipeg by the time farmers harvest their new crops, the state-owned agricultural trader said Tuesday.

Syngenta says U.S. talks over ChemChina bid 'constructive'

 Syngenta AG, which has agreed to be taken over by China National Chemical Corp. for $43 billion, said talks with regulatory authorities to win approval for the deal have been constructive and the Swiss company is confident the transaction can be closed on time.

ChemChina to acquire the remaining 40% stake of Adama

 Israel's Discount Investment Corporation recently agreed to sell its 40% stake in Adama to China National Chemical Corporation for the equivalent of $1.4 billion, giving the Chinese company complete control of their joint venture agrochemicals maker. In 2011, ChemChina acquired 60% share of ADAMA for $2.4 billion.

Sanyuan plans Canada dairy investment

 Beijing Sanyuan Foods Co Ltd, one of China's leading dairy producers, plans to purchase a majority ownership in Crowley Properties Ltd, a Vancouver-based company making dairy products such as yogurt, cheese, ice cream and butter for about C$19 million ($14.58 million), according to an announcement by Sanyuan.

Chinese company in funding New Zealand milk powder plant

 WELLINGTON, July 28 (Xinhua) - A state-owned Chinese agricultural company has taken a cornerstone share in small New Zealand dairy firm Mataura Valley Milk to enable a major expansion, the dairy company said Thursday.

Chinese retailing giant Alibaba to target Australia as part of global expansion

 MELBOURNE, July 19 (Xinhua) - Chinese online retailing giant, Alibaba, has announced on Tuesday that it will open its first local office in the Australian city of Melbourne later this year, after flagging its intentions to expand outside of China.

Wal-Mart, begin 'marriage'

 The cooperation between Wal-Mart Stores Inc and Inc will not affect the American multinational retailer's plan for bricks-and-mortar stores in China, but the flagship internet store of Sam's Club China will be opened on JD in a few months.

Chinese cross-border M&A robust in Q2: report

 BEIJING, July 18 (Xinhua) - Chinese bidders continued to drive the value of cross-border mergers and acquisitions (M&A) in the second quarter of 2016, according to a report released by law firm Baker & McKenzie on Monday.

Shanghai FTZ helps outbound investment increase by over twofold in Jan-May

 Shanghai companies made about $13.16 billion in investments in overseas merger and acquisition (M&A) deals from January to May, an increase of 228 percent year-on-year, the Shanghai municipal government said on Thursday. 

19th China Agricultural Products Processing Industry Investment and Trade Fair set for early Sept. in Henan

 The Organizing Committee of the 19th China Agricultural Products Processing Industry Investment and Trade Fair held a press briefing in Beijing on July 28, 2016. The Trade Fair, co-sponsored by MOA and the Henan Provincial Government, is scheduled for Sept. 6-8 in Zhumadian City, Henan Province in central China.


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




Current price


Percentage changes

as compared to last period

(%, July 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 July 2016

Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       07/11/16-

B.       07/01/16-

C.       06/11/16-

D.       07/11/15-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        07/11/16-

F.        07/01/16-

G.       06/11/16-

H.       07/11/15-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         07/11/16-

J.         07/01/16-

K.       06/11/16-

L.        07/11/15-











Source: China Animal Agriculture Association