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China Agricultural Newsletter - March 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

Laws, Regulations and Policies

China expands trials of crop rotation, fallow systems

 China will expand its trials of crop rotation and fallow systems this year as part of efforts to facilitate the green development of agriculture.

Quality of agricultural products to improve

 The Ministry of Agriculture has published a five-year plan to improve the quality of agricultural products, including measures to ensure that products such as apples, tea and pork can be traced back to their producers.

Farm pollution, fertilizer overuse targeted

 China will launch campaigns to curb pollution from livestock and poultry farms, as well as the excessive use of fertilizers in horticulture, to fight pollution in rural areas, a top agricultural official said on Tuesday.

China to introduce first overseas investment regulation

 BEIJING, March 21 (Xinhua) - China is expected to introduce its first regulation on overseas investment this year.

Corporate taxes, fees are to be trimmed

 China will help enterprises reduce their tax burden and cut fees to help improve their competitiveness, Premier Li Keqiang pledged on March 15.

Beijing to strengthen regulation of online catering

 BEIJING - Beijing pledges to strengthen regulation of online catering platforms to ensure food safety, the municipal food and drug administration said.

China to intensify auditing of State firms' overseas investment

 BEIJING - China's central authorities made public a plan on Friday to step up auditing of overseas investment by State-owned enterprises (SOEs) and strengthen supervision of State-owned capital.

Industry and Business Watch

Chinese premier stresses agricultural supply-side structural reform

 SHIJIAZHUANG - Chinese Premier Li Keqiang has called for agricultural supply-side structural reform and improvements to the agricultural development system.

GM food research to continue amid prudent approach, official says

 China will continue to encourage GM food research and take prudent steps in marketing procedures, a leading agriculture official said on Tuesday.

China takes a step closer to green agriculture

 Chinese farmers apply 70 percent more chemicals on crops than the world average, but the country is taking a step closer to green agriculture by encouraging farmers to reduce the use of chemical fertilizers.

New soymeal futures hedge is launched

 Dalian Commodity Exchange launched new soymeal futures options on Friday - the first commodity options in China - offering one more hedging tool for investors, as well as soybean processing firms.

Canada opens public talk on pork free trade with China

 The Canadian federal government began three months of consultations about a potential free trade agreement with China that could benefit pork exports to China.

China, EU cut imports of Brazil meat amid scandal

 China and the European Union curtailed meat imports from Brazil on Monday after police, in an anti-corruption probe criticized by the government as alarmist, accused inspectors in the world's biggest exporter of beef and poultry of taking bribes to allow sales of rotten and salmonella-tainted meats.

New trade deal boosts Aussie beef exports to China

 A new trade agreement makes Australia the first and only country to gain full market access to China for chilled beef, giving beef exporters the prospect of an additional million (US$305.2 million) annually in revenues.

Who will supply China's growing appetite for poultry?

 Chinese meat and poultry consumption has more than quadrupled in the past 30 years and, while chicken will not soon overtake pork consumption in China, it is being eaten much more regularly.

Dairy sector scales new heights, minister says

 The dairy sector has reached new heights with the development of large-scale farms and use of machinery after the 2008 milk scandal, Agriculture Minister Han Changfu said on Sunday.

Lithuanian dairy company sends trial products to Chinese market

 One of Lithuania's largest dairy producers has sent the first product delivery to China amid fresh efforts to enter the Chinese market, the company announced on Wednesday.

China to buy $1.7bn worth of Philippine agricultural produce

 MANILA - China on Wednesday signed deals committing it to buy US$1.7 billion worth of fruits and other agricultural products from the Philippines, the latest in a series of agreements in an era of cordial ties under President Rodrigo Duterte.

Vietnam urges China to permit more rice exporters

 Vietnam's Ministry of Agriculture and Rural Development (MARD) will soon contact Chinese authorities, asking them to send an expert delegation to Vietnam to assess more businesses which could be eligible for exporting rice to China, according to Tran Thanh Nam, MARD deputy minister on Thursday.

China becomes leading purchaser of Chilean wine

 Chilean wine exports reached 215.9 million US dollars in January and February, representing a 12.4 percent rise on 2016, with China topping the list of destinations. 

China, Australia, New Zealand companies team up on food safety

 SHANGHAI, March 30 (Xinhua) - Chinese e-commerce giant Alibaba, consultancy PwC and New Zealand Dairy giant Fonterra have teamed up to develop a system that will track the global supply chain of food products, said PwC China.

ADM to expand feed production in China

 Archer Daniels Midland Company has announced that it is continuing to expand its animal nutrition footprint in China with the construction of a new feed-premix facility in Xiangtan, in Hunan Province, central China, and the addition of aquaculture feed production lines at its existing Nanjing complex in Jiangsu Province, eastern China.

Chinese company invests 46 mln USD in Australian vitamin maker Blooms

 SYDNEY, March 30 (Xinhua) - Australian vitamin supplement company Blooms has closed a deal with Goubuli Group, that will see the Chinese company invest 60 million Australian dollars (45 million U.S dollars), in order to enhance their synergy within the booming sector.

Traditional Chinese food brand cooperates with Australian company

 TIANJIN - Goubuli, one of China's longest established food brands from the northern city of Tianjin, has signed a strategic cooperation agreement with Australian health product company Blooms Bluesky Holding.

Outbound M&A activity more rational in 2017

 SHANGHAI - Changzhou-based Trina Solar Group, one of the leading producers of solar photovoltaic worldwide, established a solar battery plant in Vietnam at the beginning of this year.

USDA: China Grain and Feed Annual

 Corn future and spot prices have dropped to their lowest levels in six years. The government has facilitated the liquidation of temporary reserve stocks with various producer support and processor support programs. This new trend is going to change the dynamic of China’s feed markets.

USDA: China Poultry and Products Semi-Annual

 In 2017, all facets of Chinese poultry will likely be affected by China’s response to continued Avian Influenza (AI) detections, both within China and overseas.

USDA: China Livestock and Products Semi-Annual

 Implementation of strict environmental regulations will further constrain China’s sow herd recovery in 2017. Post is decreasing its 2017 starting sow estimate by 12 percent to 38 million head.


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




Current price


Percentage changes

as compared to last period

(%, March 1-10, 2017)


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 March 2017

Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       03/11/17-

B.       03/01/17-

C.       02/11/17-

D.       03/11/16-













                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        03/11/17-

F.        03/01/17-

G.       02/11/17-

H.       03/11/16-













                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         03/11/17-

J.         03/01/17-

K.       02/11/17-

L.        03/11/16-













Source: China Animal Agriculture Association