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China Agricultural Newsletter - August 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 grade provincial governments' food safety performance

 The central authority will send inspectors to review provincial-level government food safety, according to a document published on Monday.

China introduces humane livestock slaughter rules

 JINAN, Aug. 29 (Xinhua) - Local rule on the humane slaughter of chicken took effect in east China's Shandong Province on Monday, the first for poultry in China.

Duties extended on U.S. poultry for five years

 China will extend countervailing duties on U.S. poultry products for another five years, the Ministry of Commerce (MOFCOM) said on Monday.

Agriculture ministry rejects non-GMO reserve proposal

 China's agricultural authority announced Tuesday that it has rejected the national legislature's proposal to set aside special zones for the cultivation of non-GMO (genetically modified organism) soybeans, saying such a step would mislead the public about GMO products.

Nation holds firm on higher standards for canola imports

 China is standing firm on its insistence for higher standards of canola in negotiations with Canada, which shows the government's determination to regulate the sector by encouraging domestic production of the crop, experts told the Global Times on Tuesday.  

China to grade provincial governments' food safety performance

 The central authority will send inspectors to review provincial-level government food safety, according to a document published on Monday.

China to release new plan for consumer goods standards

 BEIJING, Aug. 26 (Xinhua) - A new plan to promote standards and quality in consumer goods, initiated by China's quality watchdog and other departments, will be made public soon, an official said Friday.

Industry and Business Watch

Farm produce prices rebound last week

 Farm produce prices broke a four-month losing streak to rebound slightly last week, the Ministry of Commerce said on Tuesday.

China's technology innovation plan to support GM crops research

 China will allocate more resources to GM crop R&D, according to a five-year plan for science and technology progress published Monday by the State Council.

China's farmland remains above "red line"

 China's total area of arable land stood at 135 million hectares at the end of 2015, well above a government "red line".

Falling pork prices in China seen as trend in next 15 weeks

 Pork prices in China are predicted to be on a downward trend over the next 15 months, according to the head of the world’s largest pork company.  

Near-record prices as China imports ever more pork

 Despite the release of government stores of pig meat onto the market and rising imports, pork prices in China are reaching historic highs, reported the South China Morning Post. Already at CNY18.34 (USD2.76) per kilo, one analyst predicts the price to break the current record set in May of CNY21.00 (USD3.16) per kilo as soon as September. Another source put the increase in pig meat prices at 51 percent so far this year, and wholesale prices already at CNY26.74 (USD4.02) in Shanghai in June.

Floods in China cause major poultry, pig losses

 Millions of chickens and ducks, as well as tens of thousands of hogs have been lost to summer floods in three Chinese provinces.

Brazil now China's biggest source of beef imports

 Limited domestic output and rising per-capita incomes are pushing beef-hungry China to importthe high-protein, low-fat meat in increasing quantities from Brazil.

China broiler meat shortfall worsens

 China’s production of broiler meat is expected to decrease by 5% this year, an effect of the country’s continued restrictions on imports of grandparent stock from its major suppliers.

Dairy industry recovering from scandals: report

 Following eight years of tightened regulation and an industry overhaul, Chinese dairy products are emerging from the shadow cast by high-profile safety scandals, according to a report released Tuesday.

China, UK start three-year agricultural collaboration project

 China and the UK started a 1.3 million pound collaboration project on sustainable agricultural technology research in July, marking the latest addition to farming cooperation between the two countries.

Chile targets China as main destination for food exports

 SANTIAGO, Aug. 6 (Xinhua) - Chile hopes China will soon become the No. 1 destination for its food exports, Chilean Agriculture Minister Carlos Furche said Friday.

Jilin Grain gets $1.5 billion in bid to restructure

State-owned Jilin Grain Group Co Ltd, the largest grain trader in northeastern China by salesrevenue, will use 10 billion yuan ($1.5 billion) of new investment to add new types of businessesthis year, including agricultural insurance, machinery manufacturing and pesticides.

Feed prices challenge Tyson Foods in China

 Tyson Foods’ operations in China have been hampered by high feed prices and a weak wholesale market for chicken, the company’s CEO said.

Cobb China opens new hatchery, grandparent farm

 Cobb China held an official opening at the office where its newly constructed hatchery and grandparent farm are located in the Suzhou province.

Sun Art e-commerce plans

 Hypermarket operator Sun Art Retail Group said on Thursday it plans to invest 1 billion yuan ($150.6 million) in e-commerce development over the next two years.

Carrefour shifts focus away from hypermarts

French retailer Carrefour SA continues to shift its focus from its traditional hypermarket business to smaller convenience store format-planning to open 40 to 50 in Shanghai this year.

Soft drinks lose fizz amid shift to healthier options

 The nation's soft drinks market shrank because of the sluggish demand in the first half of the year, industry analyst said.

Sale of Coca-Cola bottling stakes mulled

 State-owned China Foods Ltd is considering a sale of its stakes in Coca-Cola bottling factories, a move that would reshape its near duopoly on the mainland with Swire Pacific Ltd since the beverage giant began to refranchise its bottling operations.

Growth in Chinese market helps increase Finnish sawn wood export

 The export of the Finnish sawn timber started to grow and the sales to China almost doubled in the second quarter of 2016, Finnish national broadcaster Yle has reported.

Fast-food chain urged to give up antibiotics globally

 McDonald's fast-food restaurant chain said on Monday that meat suppliers for its restaurants in China must strictly follow China's law and regulations on the use of antibiotics in beef cattle and poultry.

US clears for ChemChina's purchase of Syngenta

A US national security panel has cleared ChemChina's $43 billion takeover of Swiss pesticides and seeds group Syngenta the companies said on Monday, boosting chances that the largest foreign acquisition ever by a Chinese company will go through.

Chinese Firm to Establish Multi-Million Dollar Feed Mill In Calabar

 A Chinese firm, Wuhan Longfecund Agricultural Development Company Ltd., is set to establish a feed mill and maize farm in Cross River State.

Chinese company buys one of Australia's largest cattle stations

 MELBOURNE - A Chinese company has bought one of Australia's largest cattle stations for $76million.

China, Kazakhstan to jointly build fertilizer production hub

 A Chinese firm and a Kazakhstan firm have agreed to form a joint venture to develop a major fertilizer production and distribution hub in southwest China's Chongqing municipality.

China's overseas M&A deals hit record 134 bln USD in H1

 SHANGHAI, Aug. 10 (Xinhua) -- China's overseas mergers and acquisitions hit record 134 billion U.S. dollars in H1, international accounting firm PwC said on Wednesday.

Statistics

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

 

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, August 1-10, 2016)

Rice

Japonica rice / kg

6.28

-0.2

Flour

Strong flour / kg

6.08

0.8

Flour

Standard wheat / kg

4.93

0.2

Soy products

Bean curd / kg

4.69

0.0

Peanut oil

5 Lin barrel bulk / litre

27.85

0.0

Soyabean oil

5 Lin barrel bulk / litre

9.99

0.0

Rape seed oil

Grade 1 in bulk / liter

13.80

0.6

Pork

Rump / kg

31.22

-0.2

Pork

Belly meat / kg

32.16

0.0

Beef

Leg / kg

66.67

0.0

Mutton

Leg / kg

59.08

0.0

Chicken

Frozen fresh chicken / kg

21.90

-0.2

Chicken

Breast / kg

21.07

0.5

Ducks

Frozen fresh duck / kg

18.09

-0.1

Eggs

Fresh eggs in bulk / kg

9.07

3.0

Source: China National Bureau of Statistics

Major meat retail price August 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       08/11/16-
08/20/16

B.       08/01/16-
08/10/16

C.       07/11/16-
07/20/16

D.       08/11/15-
08/20/15

(A-B)/B

(A-C)/C

(A-D)/D

34.66

34.76

35.06

33.32

-0.29%

-1.14%

4.02%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        08/11/16-
08/20/16

F.        08/01/16-
08/10/16

G.       07/11/16-
07/20/16

H.       08/11/15-
08//20/15

(E-F)/F

(E-G)/G

(E-H)/H

8.82

8.74

8.74

9.88

0.91%

0.91%

-10.73%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         08/11/16-
08/20/16

J.         08/01/16-
08/10/16

K.       07/11/16-
07/20/16

L.        08/11/15-
08/20/15

(I-J)/J

(I-K)/K

(I-L)/L

19.89

19.87

19.82

19.72

0.10%

0.35%

0.86%

Source: China Animal Agriculture Association 

 
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