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China Agricultural Newsletter - December 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 push agricultural reform

 Chinese government will make sure that supply-side structural reform in agriculture heads in the right direction, according to an official statement released Tuesday.

China to improve farmers' income, agricultural product quality

 A central rural work conference has stressed the need for better quality and efficiency in agriculture, focused on farmers' incomes and produce quality.

Guideline supports rural entrepreneurship, innovation

 A new guideline supporting rural entrepreneurship and innovation will enable more migrant workers, college graduates and those in high-tech sectors to start businesses in rural areas and help improve the efficiency of the agricultural sector, a senior official said.

China to establish comprehensive food safety standard system

 BEIJING, Dec. 24 (Xinhua) - China's food safety system will soon cover almost all kinds of food and major hazard factors, according to a report released Friday.

China to promote development of agricultural product processing

 BEIJING, Dec. 28 (Xinhua) - The State Council, China's cabinet, has issued guidelines on agricultural product processing industry.

Growth around 6.5% seen for 2017

 China's economy will expand by around 6.5 percent year-on-year in 2017, and consumer inflation will moderately rise to 2.2 percent, according to forecasts in a book released by a top think tank on Monday.

China to end "exclusive sales" pattern in salt industry

 Salt industry system reform implementation schemes by 31 provinces and cities have all been submitted as of December 6, and approval work is expected to be completed before December 20, Shanghai Securities News quoted Zhao Chenxin, a spokesman for the National Development and Reform Commission (NDRC) as saying on December 13.

MOA mulls to establish grain production function zones

 The Ministry of Agriculture (MOA) is mulling to establish grain production function zones as well as key agricultural product production protection zones to ensure key agricultural product safety and supply, according to Yu Xinrong, vice minister of MOA.

NE China province to ban GM crops

 Farmers in northeast China's Heilongjiang province, China's top grain producer, will be prohibited from growing Genetically Modified(GM) crops, according to a provincial regulation passed on Friday.

State Council rolls out big plans to improve environment during 2016-2020

 China will strengthen efforts to improve environment quality and enhance environment governance during the 13th Five-Year Plan period (2016-2020), according to a plan issued by the State Council on Dec 5.

China considers draft revision to curb water pollution

 BEIJING, Dec. 19 (Xinhua) - China's top legislature may revise a law to better prevent water pollution, by strengthening government responsibility and supervision, according to a draft released Monday.

China to streamline domestic green market

 The State Council has decided to set up a unified system to enhance the quality and supply of green products by 2020, according to a circular released on Dec 7.

China to streamline domestic green market

 The State Council has decided to set up a unified system to enhance the quality and supply of green products by 2020, according to a circular released on Dec 7.

China moves to regulate e-commerce

 BEIJING, Dec. 19 (Xinhua) - China's top legislature is deliberating a draft law that will regulate and facilitate booming e-commerce in the country.

Industry and Business Watch

China sees huge potential in agriculture investment

 China's agriculture sector is attracting growing investment amid government efforts to push integrated development in rural areas, official data showed on Thursday.

China's land of plenty faces acute land shortage

 Arable land reserves in China's developed regions are nearly depleted and intensive land use is unsustainable, the Ministry of Land and Resources (MLR) said Wednesday.

China's online sales of farm produce jump 46 pct

 BEIJING, Dec. 19 (Xinhua) - Online retail volume of China's farm produce is expected to grow by about 50 percent in 2016 as more farmers use e-commerce platforms to sell their produce.

US takes China to WTO over grain imports

 The US government on Wednesday announced it was taking aim against illegal Chinese restrictions on imports of US grain, as well as price supports China provides for domestic farmers.

Laos to increase rice exports to China

 Laos plans to step up rice exports to China next year after the quality of rice sold to the country so far was found to be satisfactory by Chinese buyers, the state-run press Vientiane Times reported.

Growth of low-cost imports accelerates drop in China's pork prices

 Pork prices have been rising since April 2015 and reached an historic peak in late June, which agricultural experts claim indicates the existence of a "pork cycle," adding that domestic farmers should boost their supplies. However, domestic stocks have dropped as many farmers have either already given up or plan to stop raising pigs, as they see it as increasingly "risky" as their sector is impacted by increasing imports. Experts have warned of the effect of cheap imports, calling for greater consolidation in the industry. 

China-Europe freight train imports meat from Germany

 CHENGDU - A freight train loaded with meat from Germany arrived at Chengdu, capital of southwest China's Sichuan province, Saturday, sources with Chengdu Qingbaijiang International Railway Port said Sunday.

Nation aiming to double ethanol output to 4m tons

 China is aiming to produce 4 million tons of ethanol by 2020, doubling output from the current level, even as it keeps tight control over the use of food grains to make the biofuel, a government plan showed on Monday.

China's cotton yield continues dropping in 2016

 China's cotton yield continued to drop in 2016 as the growing area of the fiber decreased, official data showed Tuesday.

Chinese officials push farmers into garlic

 BEIJING - Chinese local government officials are encouraging farmers to diversify into garlic to correct supply shortages that have nearly doubled prices this year. But fears are growing that the growth policy will lead to a glut, followed by a crash in prices, as the market repeats a pattern seen in pork and other foods.

Wine industry to see major development in Ningxia

 YINCHUAN, Dec. 8 (Xinhua) - The wine industry in northwest China's Ningxia Hui Autonomous Region will see major development in the next few years.

China's biggest meat processor completes deal with New Zealand's biggest meat cooperative

 WELLINGTON - China's biggest meat processor completed a deal Tuesday to buy a half stake of New Zealand's biggest meat cooperative.

CPF acquires China's COFCO Meat Suqian

 In its latest big buy, Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of agribusiness giant Charoen Pokphand Group, has acquired COFCO Meat Suqian for 976 million baht. 

Chinese group gets Aussie govt approval to buy local cattle empire

 CANBERRA - Australia's Treasurer Scott Morrison approved on Friday the sale of Australia's largest pastoral land holding ,S. Kidman & Co, to a partnership involving local mining magnate Gina Rinehart and Chinese consortium Shanghai CRED.

China to increase animal feed output by 2020

 China plans to increase its animal feed output to 220 million tons by 2020, according to the Ministry of Agriculture’s 13th five-year plan for 2016-20.

FrieslandCampina to further promote 'Dutch Lady' brand in China

 Dutch dairy company Royal FrieslandCampina will bring its "Dutch Lady" dairy brand to more places in the country, its CEO said at a press event on Tuesday.

McDonald's upgrades O2O strategy in mainland

 McDonald's unveiled an upgraded online-to-offline (O2O) strategy in the Chinese mainland over the weekend, aiming to link more stores to digital hardware and personalized products across the nation.

McDonald's chooses Carlyle consortium to buy China franchise

 McDonald's Corp has picked a consortium led by private-equity firm Carlyle Group LP and Chinese conglomerate CITIC Group Corp to buy its Chinese mainland and Hong Kong stores for as much as $2 billion while keeping a minority stake in the business, according to US media reports on Tuesday.

Koubei to juice 12-12 up with overseas deals

 Koubei, the online-to-offline or O2O e-commerce platform backed by internet giant Alibaba Group Holding, expects to give overseas offline stores a sales boost and provide internet-based finance for more merchants during the "Double 12" (Dec 12) shopping festival on Monday.

Fotile Kitchenware cooks North America expansion plan

 Ningbo Fotile Kitchenware Co Ltd, which makes high-end appliances and integrated kitchens, will accelerate its expansion into North America next year, having tasted success in Asia.

ChemChina establishes $5b fund to help finance Syngenta acquisition: report

 China National Chemical Corp (ChemChina) is setting up a fund that will aim to raise $5 billion to help finance its purchase of Swiss seeds group Syngenta, two sources with direct knowledge of the matter told Thomson Reuters publication Basis Point.

China FDI growth slows, ODI increases

 Foreign direct investment (FDI) in the Chinese mainland slowed in the first 11 months, while outbound direct investment (ODI) increased, official data showed on Dec 15.

Statistics

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

 

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, December 1-10, 2016)

Rice

Japonica rice / kg

6.30

-0.2

Flour

Strong flour / kg

6.11

0.2

Flour

Standard wheat / kg

4.95

0.2

Soy products

Bean curd / kg

4.68

0.0

Peanut oil

5 Lin barrel bulk / litre

27.97

-0.1

Soyabean oil

5 Lin barrel bulk / litre

10.05

0.1

Rape seed oil

Grade 1 in bulk / liter

13.85

0.6

Pork

Rump / kg

29.88

0.4

Pork

Belly meat / kg

31.16

0.4

Beef

Leg / kg

67.14

0.0

Mutton

Leg / kg

59.05

0.2

Chicken

Frozen fresh chicken / kg

21.78

-0.4

Chicken

Breast / kg

20.85

0.4

Ducks

Frozen fresh duck / kg

18.06

-0.2

Eggs

Fresh eggs in bulk / kg

9.29

-0.8

Source: China National Bureau of Statistics

Major meat retail price November 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       11/11/16-
11/20/16

B.       11/01/16-
11/10/16

C.       10/11/16-
10/20/16

D.       11/11/15-
11/20/15

(A-B)/B

(A-C)/C

(A-D)/D

33.80

33.90

34.18

31.70

-0.29%

-1.11%

6.62%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        11/11/16-
11/20/16

F.        11/01/16-
11/10/16

G.       10/11/16-
10/20/16

H.       11/11/15-
11//20/15

(E-F)/F

(E-G)/G

(E-H)/H

9.38

9.36

9.38

9.60

0.21%

0%

-2.29%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         11/11/16-
11/20/16

J.         11/01/16-
11/10/16

K.       10/11/16-
10/20/16

L.        11/11/15-
11/20/15

(I-J)/J

(I-K)/K

(I-L)/L

19.52

19.48

19.60

19.68

0.21%

-0.41%

-0.81%

 

Source: China Animal Agriculture Association 

 
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