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China Agricultural Newsletter - October 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 issues guidelines on implementing 13th 5-year plan

 BEIJING, Oct. 23 (Xinhua) - The Communist Party of China Central Committee and the State Council have issued guidelines on the implementation of the 13th Five-Year Plan (2016-2020) for economic and social development.

China lays out plan for agricultural modernization by 2020

 China aims to achieve "marked progress" in agricultural modernization by 2020, according to a five-year plan released by the State Council Thursday.

China promotes transfer of farmland use right

 A policy of promoting and standardizing the transfer of the right to use farmland from rural residents to commercial entities is expected to raise the efficiency of agricultural production in China.

Food safety draft stipulates stricter online regulations

BEIJING - China has published and is soliciting public opinion on a draft revision to the country'sfood safety regulation, which stipulates stricter rules for online food sales.

China to remove 2,000-year-old price control over salt market

 China has decided to remove administrative price controls on the salt market to foster competition, the country's top economic planner announced Sunday.

China releases sugar reserves to stabilize supply

 Chinese authorities will release the first batch of sugar reserves this year to stabilize supply and prices, the country's top economic planner announced on Friday.

China extends anti-dumping duties on US chicken for5 years

 BEIJING - China's Ministry of Commerce (MOC) announced Monday that it will extend anti-dumping duties on US white-feathered broiler chickens for another five years, starting Tuesday.

China unveils measures to promote private investment

 BEIJING, Oct. 12 (Xinhua) - China's top economic planner said Wednesday it has unveiled a raft of policies to promote the healthy growth of private investment.

Industry and Business Watch

China's food prices dip last week

 BEIJING, Oct. 25 (Xinhua) - Food prices in China edged down last week, on the back of cheaper vegetables and fish, with inflation running below the government target.

Grain purchasers waiting in face of market uncertainty

 In the first corn harvest since March, when China reformed its corn stockpiling program in some areas of the country, farmers are facing both falling corn prices and demand, according to media reports.

Chinese scientist plans mass production of sea-rice

 China's "father of hybrid rice" is planning to expand its production of sea-rice at a newly founded research center in Qingdao, a port city in the eastern province of Shandong, local sources said Saturday.

Zhejiang pilots China's replacement strategy for mechanical farming

 China has chosen one of its most affluent provinces, Zhejiang, to pilot the strategy of replacing farm laborers with machines. 

Shanghai food authority fines fast food supplier overmeat scandal

SHANGHAI - Shanghai Municipal Food and Drug Administration on Monday ordered a major fast food chain supplier and its parent company to pay fines for producing and sellingsubstandard products.

US claim on farm goods morally untenable

 On Sept 13, the United States initiated WTO dispute proceedings against China, claiming that Beijing had provided support for farmers in excess of its commitment to the World Trade Organization. Among the crops in contention are wheat, Indica rice, Japonica rice, and corn.

Chinese, US enterprises sign agricultural transaction contracts

CHICAGO - More than a dozen Chinese and the US enterprises on Friday signed agricultural transaction contracts worth $2.1 billion, under which Chinese enterprises will import 5.1 milliontons of farm products from the US companies.

Chinese firms rush into Cambodian farming

 Chinese investors are rushing to invest in agriculture in Cambodia, drawn by ideal farming conditions and the sound relationship between the two countries, although there are challenges such as Cambodia's underdeveloped infrastructure and limited fundraising channels, insiders said Sunday.

Kyrgyzstan hopes to export to China meat, milk and fish

 Kyrgyzstan hopes to export to China meat, milk and fish. The first Vice Prime Minister of Kyrgyzstan Mukhammetkaly Abulgaziev announced such data today at a meeting of the Kyrgyz-Chinese intergovernmental commission. 

China, Georgia wrap up FTA talks

 TBILISI, Oct. 5 (Xinhua) - China and Georgia on Wednesday substantially concluded their Free Trade Agreement (FTA) negotiations, with a landmark memorandum of understanding signed in Tbilisi.

Belarus eyes Chinese market for wide range of food products

 BEIJING, 28 September (BelTA) - Belarus hopes to enter the Chinese market with a proposal of a wide choice of food products, Belarus' Agriculture and Food Minister Leonid Zayats told media on 28 September, BelTA has learned.

Aust'n dairy giant to air-freight fresh milk to China in bold export venture

 MELBOURNE, Oct. 27 (Xinhua) - One of Australia's largest and oldest dairy companies has announced it will export fresh milk directly to China every week beginning in 2017.

ChemChina launches new e-commerce portal

 China National Chemical Corporation (ChemChina), a State-owned chemical giant, officially launched its e-commerce platform on Sept 21 at the 15th China International Chemical Industry Fair, marking the establishment of the first chemical industrial e-commerce portal in the country.

SunMoon to receive a shot in the arm from China's leading e-commerce player

 Singapore mainboard-listed global distributor and marketer of fresh fruits and vegetables SunMoon food Company Ltd. gave China's Shanghai Yiguo E-Commerce Co. Ltd. the go signal to inject $24 million fund in the group.

OSI Group fined $3.6 million in food safety case

 OSI Group has been fined US$3.6 million by Chinese regulators in connection with a food safety case in which the company’s Chinese unit, Husi Food Co., had repackaged expired meat and poultry with false expiration dates and sold those products to restaurants in China and Japan.

Wal-Mart increases its shareholding in

Wal-Mart Stores Inc is pushing more aggressively onto Alibaba Group Holding Ltd's turf. The Bentonville, Arkansas-based retailer boosted its stake in China's second-largest e-commerce website Inc, strengthening an alliance to win more market share in the world'slargest online market. Wal-Mart lifted its holding to 10.8 percent from 5.9 percent, according toan amended 13-G filing on Thursday. JD rose 7.5 percent in extended trading in the US.

Nescaf launches Dolce Gusto Yunnan Espresso Limited Edition in China

 Nescafé's high-end brand Dolce Gusto launched the Yunnan Espresso Limited Edition to the Chinese market on September 22. Made with raw materials from local coffee plantations in Yunnan Province, the Yunnan Espresso Limited Edition is now available in 70 countries and regions across the global market.

New Hope Group opens Australian headquarters

 Diversified Chinese conglomerate New Hope Group Co Ltd's Australian expansion has taken another step, opening its Australian headquarters in Sydney on Thursday, eyeing further agribusiness acquisitions and an expansion of its fledgling real estate developments.

New Hope eyes overseas buys

 New Hope Liuhe, a listed-company of China's largest feed-grain producer New Hope Group, said it will consider more overseas acquisition possibilities to feed the country's growing appetite for meat.

Traditional Chinese medicine chain opens U.S. locations

 The world's largest producer of products for traditional Chinese medicine (TCM) opened stores this week in New York and California to capitalize on the growing interest in the alternative medicine practice.

Chinese food company acquires Canada's Kerr

China's Xiwang Foodstuffs has acquired 100 percent stake of Canada's Kerr Investment Holding Corp, the Chinese firm announced on Friday.


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




Current price


Percentage changes

as compared to last period

(%, October 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 October 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       10/11/16-

B.       10/01/16-

C.       09/11/16-

D.       10/11/15-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        10/11/16-

F.        10/01/16-

G.       09/11/16-

H.       10/11/15-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         10/11/16-

J.         10/01/16-

K.       09/11/16-

L.        10/11/15-











Source: China Animal Agriculture Association