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China Agricultural Newsletter - September 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

Pollution fees could become law of the land

A draft of China’s first environmental protection tax law, submitted to the top legislative body for initial discussion on Aug 29, may impose heavier penalties on polluters than ever before.

China lifts ban on U.S. beef imports

BEIJING, Sept. 22 (Xinhua) - China on Thursday lifted a decade-plus ban on some beef products from the United States, according to agriculture and quarantine regulators.

China imposes anti-dumping measures on U.S. distiller's grain

China's Ministry of Commerce has decided to impose anti-dumping duties on distiller's dried grains (DDGs) from the United States by requiring importers to pay a cash deposit on purchase.

China to review anti-subsidy duties on EU potato starch

BEIJING - China will review anti-subsidy duties levied on potato starch imported from the EU asthey are due to expire, the Ministry of Commerce announced on Wednesday.

China to invest $450b modernizing agriculture by 2020

 

The Agricultural Development Bank of China, one of the country's main policy lenders, agreed to loan at least 3 trillion yuan ($450 billion) by 2020 for the modernization of China's agriculture industry, state media said on Sunday.

China delays new rules on Canadian canola shipments

China has officially extended its deadline to enforce strict rules on canola shipments from Canada yesterday, ending a months-long trade spat. While both countries work out a feasible long-term deal, the current canola export regime will continue to be in place.

Shanghai tightens grip against food safety violations

Shanghai has tightened its grip in fighting food safety crimes, with violators likely to face life bans in the industry.

New trade zones show resolve to pursue opening-up

China is showing its resolve to pursue further opening-up and trade liberalization by giving the green light to seven more Free Trade Zones (FTZs) in inland provinces ahead of the 11th G20 Summit.

Industry and Business Watch

Farm produce prices continue to rise last week

Farm produce prices continued their upward trend last week, driven by vegetable, the Ministry of Commerce said on Monday.

China to invigorate agriculture with information technology

China will further integrate information technology into agriculture in the next five years to increase productivity and efficiency, according to the country's agriculture watchdog.

China likely to set new hybrid rice production record earlier

Yuan Longping, renowned Chinese developer of hybrid rice, expressed his confidence Tuesday that a hybrid rice yield target projected for 2018 will be met this year.

Crop-dusting drones modernize agriculture in NW China

An eight-rotor drone whirred to life, and hovered steadily in the air before setting off to spray a large vegetable field in Guyuan City in the northwestern autonomous region of Ningxia Hui.

Livestock industry urged to go green

The livestock industry needs green development as China strives to modernize its agriculture industry by making it more efficient, inclusive and environment-friendly throughout the 13th Five-Year Plan period (2016-2020), said Li Junyang, secretary-general of the International Ecological Economy Promotion Association (IEEPA), at a seminar in Beijing on Aug. 28.

Imported pork mainly used for making ham and sausages in China

China is the world’s largest pork consumer, and it is reported that China has imported about 940,000 tonnes of pork from January to July this year. Shuanghui, one of China’s main domestic importers, reportedly imported about 141,000 tonnes of pork during the same period, which accounts for 15% of China’s total pork imports.

Chicken shortage threatens China

China could experience its first shortfall of chickens used for breeding due to a continuing ban on imports from the US, a Reuters report said.

Guangdong police block dangerous frozen meat

Guangdong police seized about 1,000 tons of substandard frozen meat products worth more than 80 million yuan ($12.3 million) if taken to market, in a special operation late last week.

U.S. challenges China at WTO over government support for grains

WASHINGTON, Sept. 13 (Xinhua) - The Obama administration has challenged China at the World Trade Organization (WTO) over "excessive government support" for domestic grain production, U.S. Trade Representative (USTR) Michael Froman announced Tuesday.

Canada, China look to expand agricultural trade

Canadian agriculture minister Laurence MacAulay will leading a trade mission to China in hopes of expanding bilateral trade between the two countries.

Bulgaria, China sign protocol on export of Bulgarian dairy products

SOFIA - Chinese and Bulgarian officials have signed a deal on export of Bulgarian dairy products to China.

Online trade to hold up Beijing wholesale markets

An online platform will be helpful in upgrading Beijing's traditional wholesale markets amid an industrial slowdown, according to industrial insiders.

Poland eyes increasing poultry exports to China

Poland has a chance to export some 2 billion Polish zloty (518.8 million U.S. dollars) worth of poultry to China, local media reported Monday.

Georgian winegrowers look forward to Georgia-China FTA

A day after China and Georgia announcedthey would sign a free-trade agreement latethis year, Georgia's agriculture minister saidthe two countries' wine industries would bebig beneficiaries very quickly.

Chinese market alleviates EU agri-food crisis:European commissioner


ROTTERDAM, The Netherlands-Demand from China continues to drive European Union (EU)agri-food exports and in particular exports of pork which reached record high level this year, EUagriculture commissioner Phil Hogan said Friday

Chinese entrepreneurs seek closer trade ties with Peru

A delegation of 40 Chinese entrepreneurs will visit Peru to learn about the country's trade opportunities and exportable offer in order to forge closer bilateral trade ties, the Association of Peruvian Exporters (ADEX) announced today.

Cargill expert addresses producer and consumer challenges at World Poultry Congress

On September 7 at the 25th World Poultry Congress held at the China National Convention Center (CNCC) in Beijing, China, Dr. Mario Penz, Corporate Fellow and Global Strategic Accounts Director for Cargill Animal Nutrition, gave a keynote address entitled “Feeding Birds of the Future”.

Bright Food unit buys stake in NZ meat processor

New Zealand approved on Tuesday the sale of a 50 percent stake in the country's largest meat processor, Silver Fern Farms, to a unit of China's Bright Food Group, enhancing the South Island-based company's access into the Chinese market.

Starbucks launches new line of beverages

Starbucks Coffee Company, global leader in coffee chain stores, is further expanding its ready-to-drink coffee beverage business in China by introducing a new bottled lines tailored forChinese taste and plans to bring its distributions to more cities in the country.

Yum sells stake to Chinese firms for $460m

Yum! Brands Inc, which operates KFC and Pizza Hut, said it will sell a combined $460 million stake in its Chinese business to Primavera Capital Group and an Alibaba Group Holding Ltd affiliate, Ant Financial Services Group.

Alibaba launches online Australian wine store to reachChinese consumers


SYDNEY - Australian wines are set to get a big boost in China with Alibaba Group Holding Ltdlaunching an online wine store, local media reported on Friday.

Tyson Foods targeting millennials in China

In hopes of gaining a bigger market share of chicken sold in China, Tyson Foods is targeting younger consumers.

HatchTech, HuaYu and Hy-Line to build hatchery in China

HatchTech, HuaYu and Hy-Line have plans to construct the world’s largest layer hatchery. The hatchery will be built in Handan, in the Hebei province of China, and will have a total capacity of 55 million commercial layers per year.

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

In anticipation of higher demand for industry feed and protein meal, based on 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.

Statistics

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

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, September 1-10, 2016)

Rice

Japonica rice / kg

6.28

0.2

Flour

Strong flour / kg

6.10

0.2

Flour

Standard wheat / kg

4.93

0.0

Soy products

Bean curd / kg

4.70

0.0

Peanut oil

5 Lin barrel bulk / litre

27.83

0.1

Soyabean oil

5 Lin barrel bulk / litre

9.98

-0.1

Rape seed oil

Grade 1 in bulk / liter

13.72

-0.3

Pork

Rump / kg

31.20

0.0

Pork

Belly meat / kg

32.22

0.3

Beef

Leg / kg

67.08

0.6

Mutton

Leg / kg

59.04

0.0

Chicken

Frozen fresh chicken / kg

22.17

0.6

Chicken

Breast / kg

21.12

0.1

Ducks

Frozen fresh duck / kg

18.24

0.6

Eggs

Fresh eggs in bulk / kg

10.30

-0.6

Source: China National Bureau of Statistics

Major meat retail price September 2016

         Pork (Lean):

                                                                    RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A. 09/11/16-
09/20
/16

B. 09/01/16-
09
/10/16

C. 08/11/16-
08/20
/16

D. 09/11/15-
09/20/15

(A-B)/B

 (A-C)/C

(A-D)/D

34.68

34.66

34.66

33.52

0.06%

0.06%

3.46%

         Egg:

  RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E. 09/11/16-
09
/20/16

F. 09/01/16-
09/10
/16

G. 08/11/16-
08/20
/16

H. 09/11/15-
09//20/15

(E-F)/F

(E-G)/G

(E-H)/H

10.00

9.92

8.82

10.72

0.81%

13.39%

-6.72%

           Chicken:

                                                                   RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I. 09/11/16-
09
/20/16

J. 09/01/16-
09
/10/16

K. 08/11/16-
08
/20/16

L. 09/11/15-
09/20/15

(I-J)/J

(I-K)/K

(I-L)/L

19.82

19.80

19.88

19.92

0.10%

-0.30%

-0.50%

Source: China Animal Agriculture Association

 
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