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China Agricultural Newsletter - January 2017

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 steps up farmland protection as grain output falls

 China vowed to strengthen farmland protection on Monday as urbanization increased pressure on grain supplies.

Reforms are 'necessary' to protect farmers' property rights

 China is to carry out "necessary and imminent" reforms of the rural collective property rights system to give farmers more rights and to prevent rural assets from falling into the hands of outside capital, as part of the country's drive to spur economic growth in rural areas, the agriculture minister said on Tuesday.

Govt approves land consolidation plan

 The State Council has approved the national plan for land consolidation (2016-2020), jointly released and implemented by the Ministry of Land and Resource and National Development and Reform Commission.

China sets up lifelong accountability system to control soil pollution

 BEIJING, Jan. 18 (Xinhua) - China will carry out a lifelong accountability system for polluters to arrest worsening soil pollution.

China earmarks funds to help with agricultural disaster relief

 BEIJING, Jan. 11 (Xinhua) - The central government allocated 400 million yuan (around 58 million U.S. dollars) to help regions affected by natural disasters, the Ministry of Finance said on Wednesday.

China releases new standards on pesticides MRLs in foods

 The 2016 National Food Safety Standards on Maximum Residue Limits (MRLs) for Pesticides in Foods was promulgated in late Dec. 2016.

China to reform paid-use mechanism for natural resources

 BEIJING, Jan. 16 (Xinhua) - The State Council on Monday released a guideline on reforming the paid-use mechanism for natural resources as the government seeks more efficient and rational use of the national wealth.

China to intensify crackdown on forex irregularities in 2017

 BEIJING, Jan. 6 (Xinhua) - The State Administration of Foreign Exchange (SAFE) said Friday it will intensify its crackdown on foreign exchange irregularities in 2017, including underground banking.

China to raise anti-dumping tax on U.S. distillers grains

 China has decided to raise anti-dumping duties imposed on distillers dried grains (DDG) from the United States in a final ruling after a year-long trade probe.

Beijing orders 225 online food providers to close shop

 Beijing's food safety watchdog has ordered 225 online meal ordering and delivery businesses to close shop since December, local officials said Saturday. 

HK bans poultry meat, products from 5 European countries

 Hong Kong on Wednesday said it has banned the import of poultry meat and products from some areas of Poland, France, Britain, the Czech Republic and Croatia.

Industry and Business Watch

China Focus: China presses ahead with structural reform

 BEIJING, Jan. 22 (Xinhua) - Supply-side structural reform will continue to be a priority of provincial governments this year as China resolves to press ahead with the major tasks for reform amid downward pressure.

China's top farm product export province sets new record

 Shandong Province in east China set a new record of exporting farm products worth 107.5 billion yuan (about 15.6 billion U.S. dollars) in 2016, according to the provincial government.

Country to expand corn ethanol amid grain surplus

 China will further encourage the use of corn to make ethanol this year amid efforts to reduce its huge grain stocks, as authorities mull adjustments to the floor prices for wheat and rice this year.

Cambodia's rice export to China up 9 pct last year

 Cambodia had exported 127,460 tons of milled rice to China in 2016, an increase of 9 percent year-on-year, according to a government's report released on Thursday.

Laos to export more rice to China: PM

 China has agreed to purchase 20,000 tons of organic rice a year from Laos, Lao Prime Minister Thongloun Sisoulith told local authorities in the southern Champassak province.

Chinese pig farmers suffer despite New Year's peak demand

 On January 28, many of the more than one billion people celebrating the Chinese Lunar New Year will dine on traditional pork dishes, reported Reuters, but pig farmers in China suffer from high feed costs and low retail prices during this peak demand season.

China is largest buyer of Uruguayan beef in 2016

 In 2016, China was once again the main purchaser of Uruguayan beef, having purchased 188,411 tons of the meat, a 15.8 percent rise over 2015, according to data from the National Institute of Meats. 

Aussie wine exporters expect to benefit as tariffs to China shrink

 CANBERRA - Australian winemakers and exporters are hoping for a boost in profits from this week, as tariffs to China are further reduced as a result of the China-Australia Free Trade Agreement (ChAFTA).

China, Serbia sign MOU on agriculture

 BELGRADE - China and Serbia on Tuesday signed a memorandum of understanding (MoU) on cooperation in agriculture.

Facing margin cuts, dairy firms shift to healthy products

 Some Chinese dairy producers have seen gross profit margins of their infant formula milk powder products continue to decline due to the impact of foreign brands, high costs and inventory pressures. So, more producers are trying to target healthy products.

"China dairy demand evolving"

 An analysis article by the US Dairy Export Council (USDEC) said that while whole milk powder (WMP) still accounts for the largest share of China’s dairy imports – 30% (355,128 tonnes) in the first 10 months of 2016-this share is down from 45% and volume is down from 621,010 tonnes during the 2014 peak. Incidentally, WMP is the product that cemented China’s place as the world’s largest dairy buyer.   

Mengniu buy-out offer to Modern Dairy: US$826 million

 China Mengniu Dairy Co., Ltd has offered to buy out China Modern Dairy Holdings Ltd for US$826 million in a deal that will help it secure a stable supply of raw milk, Reuters reported.

ChemChina, Syngenta submit minor concessions to EU watchdog

 Beijing/Hong Kong - China National Chemical Corporation known as ChemChina and Swiss pesticides and seeds group Syngenta AG have proposed minor concessions to the European Union's competition watchdog to address concerns over their $43 billion merger plan, sources told Reuters.

Origin Agritech, DuPont Pioneer Sign Definitive Agreement

 Origin Agritech Ltd. (Nasdaq: SEED) ('the Company" or "Origin"), an agricultural biotechnology trait and seed provider, recently signed a definitive agreement with DuPont Pioneer, the advanced seed and genetics business of DuPont (NYSE: DD). Under the terms of the agreement, Origin will gain access to non-GM corn seed products from DuPont Pioneer. Origin anticipates having commercial seed products available for sale in the U.S. market for spring 2017 planting. Additional terms and financial details of the agreement were not disclosed.

McDonald's to set up largest franchisee outside U.S. market in China

 BEIJING, Jan. 9 (Xinhua) - Fast food giant McDonald's announced Monday it would partner with a group of investors, which would make the new company the largest franchisee outside of America.

Suning to buy TTK Express to boost its logistics capability

 Suning Commerce Group Co Ltd's logistics subsidiary plans to spend 4.25 billion yuan ($611.03 million) buying Hangzhou-based TTK Express, aiming to expand its logistics business and cover more clients.

Instant noodle maker says Chinese mainland business as usual

 A popular instant food maker said Tuesday that its Chinese mainland business will not be affected by the dissolution of its subsidiary in Taiwan.

China's investment in U.S. in new year expected to grow fast

 WASHINGTON, Jan. 1 (Xinhua) - China's direct investment in the U.S. is expected to grow fast in 2017, but political realties pose major downside risk to it, according to a research report by a U.S. consulting firm.

Jamesway supplies new Chinese hatchery

 Xingwen Fengxiang, Mountain Dark-Bone Chicken Development Co., Ltd has announced a new hatchery in Sichuan Province which will use Jamesway’s Chinese-produced Gold Line machines.

Statistics

Average food prices in 50 cities January 11-20, 2017

 

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%, January 1-10, 2017)

Rice

Japonica rice / kg

6.33

-0.2

Flour

Strong flour / kg

6.29

-0.2

Flour

Standard wheat / kg

5.15

0.4

Soy products

Bean curd / kg

4.78

0.0

Peanut oil

5 Lin barrel bulk / litre

27.79

-0.3

Soyabean oil

5 Lin barrel bulk / litre

9.93

0.0

Rape seed oil

Grade 1 in bulk / liter

14.05

-0.5

Pork

Rump / kg

30.51

1.0

Pork

Belly meat / kg

31.88

1.4

Beef

Leg / kg

67.52

0.5

Mutton

Leg / kg

58.87

0.6

Chicken

Frozen fresh chicken / kg

21.96

-0.1

Chicken

Breast / kg

20.52

0.2

Ducks

Frozen fresh duck / kg

17.94

0.3

Eggs

Fresh eggs in bulk / kg

8.92

-2.2

Source: China National Bureau of Statistics

Major meat retail price January 2016

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       01/01/17-
01/10/17

B.       12/21/16-
12/31/16

C.       12/01/16-
12/10/16

D.       01/01/16-
01/10/16

(A-B)/B

(A-C)/C

(A-D)/D

33.86

33.82

33.74

31.54

0.12%

0.36%

7.36%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        01/01/17-
01/10/17

F.        12/21/16-
12/31/16

G.       12/01/16-
12/10/16

H.       01/01/16-
01//10/16

(E-F)/F

(E-G)/G

(E-H)/H

9.04

9.12

9.28

9.76

-0.87%

-2.59%

-7.38%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         01/01/17-
01/10/17

J.         12/21/16-
12/31/16

K.       12/01/16-
12/10/16

L.        01/01/16-
01/10/16

(I-J)/J

(I-K)/K

(I-L)/L

19.52

19.53

19.52

19.68

-0.05%

0%

-0.81%

 

Source: China Animal Agriculture Association 

 
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