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China Agricultural Newsletter - May 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'strade 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

Vice premier urges improved rural credit guarantee system

 BEIJING, April 28 (Xinhua) - Chinese Vice Premier Wang Yang called for a better rural credit guarantee system to direct more loans into the money-starved rural economy.

Arable land and soil monitoring system set up

 The Ministry of Agriculture has set up a center to monitor and protect the country's arable land.

MOFCOM puts new tariffs on sugar imports

 The Ministry of Commerce (MOFCOM) announced on Monday that it will levy a protective tariff of up to 45 percent on imported sugar beyond the tariff quota to offset the negative influence that rising imports have had on domestic producers.

VAT to be reduced on agricultural products in July

 Value-added tax on agricultural products and some other goods will be reduced starting in July, the Ministry of Finance said on Wednesday.

Call to make manure fertilizer of choice

 The Ministry of Agriculture will encourage the use of manure and reduce chemical fertilizers to make its agricultural industry more environmentally friendly and cost-efficient, according to plans announced on Tuesday.

Chinese counties to pilot agricultural disaster insurance

 A total of 200 major grain-producing Chinese counties will pilot agricultural disaster insurance this year and next year to improve their ability to counter natural disasters, according to the Ministry of Finance.

China requires large banks to set up inclusive finance divisions in 2017

 BEIJING, May 3 (Xinhua) -- China's large commercial banks have been asked to set up inclusive finance departments to support small companies, agriculture, poverty relief and entrepreneurship before the end of 2017.

US, China reach poultry, beef trade agreement

 The U.S. and China have reached a preliminary trade agreement that could potentially reopen the China market to exports of U.S. poultry and beef.

'Single-window system' will boost trade

 The State Council's executive meeting on May 24 announced that a "single-window system" will be adopted at all ports nationwide by the end of the year, according to a statement released on Wednesday after the meeting, which was presided over by Premier Li Keqiang.

Industry and Business Watch

Drones drive intelligent agriculture

 The authorities are using drones to spray pesticide on wheat fields in Xinghua, East China's Jiangsu province, as part of this year's diseases and pests control program.

China seeks balanced trade, investment with U.S.

 China is willing to work with the United States to realize balanced development of trade and investment, a research report by the Ministry of Commerce (MOC) said Thursday.

Sino-U.S. deal may lead to more biotech imports, but Chinese public still mistrustful

 China has some of the world's toughest regulations on the import of genetically-modified (GM) products. Its review process for new biotech crops is slow and strict, and over the years, many global biotech companies eager to export their products to China have complained that by setting tough barriers for GM crops, the country is delaying the commercialization of these products and stymieing international trade

China continue to offer opportunities for pork exporters

 Chinese pork imports in the first quarter increased 21% to 346,000 tonnes compared with the same period in 2016, AHDB Pork said, citing the latest figures from the Chinese customs.

China pig farmers risk losses in 2018 as production inches to glut

 Analysts expect China’s pig farmers to suffer financial losses by 2018 in light of the country’s herds about to reach full capacity, Reuters reported.

U.S. beef to be back on Chinese dining tables

 U.S. beef exports are set to resume as part of the Sino-U.S. economic cooperation 100-day action plan unveiled in mid-May.

US beef imports to raise competition

 Restarting US beef imports will hit China's industry and allow US farmers to grab market share from other foreign rivals, analysts said Tuesday.

China market for infant milk formula set to boom, says new research

 China’s infant milk formula (IMF) market is poised to grow impressively in the next few years as a result of the upgraded one-child to two-child policy and tightened regulations issued by the China Food and Drug Administration.

China says measures on sugar imports help maintain trade order

 BEIJING - China's Ministry of Commerce Thursday defended the country's tariffs on out-of-quota sugar imports, saying they will help maintain trade order.

China produces 2.4m tons of tea in 2016: Minister

 HANGZHOU - China, the largest tea producer in the world, produced over 2.4 million tons of tea in 2016, 40 percent of all the tea grown in the world, Minister of Agriculture Han Changfu said Thursday.

California almond exporters eye rich growth potential in China market

 The growing spending power of China's middle class and its increasing interest in healthy food are creating good conditions for exports of Californian almonds, said Richard Waycott, chief executive officer of the Almond Board of California.

Norway eyes seafood exports to China

 Norway has come up with an ambitious plan to dramatically increase its seafood exports to China, and expects the trade to be worth 10 billion yuan ($1.45 billion) by 2025, the Norwegian Seafood Council said on Wednesday at a news conference in Beijing.

Malaysian plantation minister expects more palm oil export to China

 PUTRAJAYA, Malaysia - Malaysia's Plantation and Commodities Minister Mah Siew Keong said on Wednesday that he expects palm oil export to China to further increase this year.

Scottish salmon graces China dining tables

 China has a fast-growing appetite for fresh and smoked salmon, but Scotland's fish farmers have been struggling to keep up with demand from the lucrative market.

Falling pork prices prompt Guangdong Wen to step into meat processing

 Guangdong Wen’s Foodstuff Group, a major pig farming company in China, will venture into meat processing, an effort that will expand its operations and mitigate impact from identifying competition and declining pork prices in the country, Reuters reported. 

New Hope cooperates with Hancock Pastoral to supply China with Australian cattle

 China’s New Hope Group is reported to have “secretly partnered” with Australia’s Hancock Pastoral to sell and deliver up to 80,000 northern Australian cattle yearly to China, The Australian reported.

China's dairy giant Yili to bid for Danone's Stonyfield

 Inner Mongolia Yili Industrial, China's biggest food and dairy group, plans to bid for the entire stake of Stonyfield, an organic yogurt producer that Groupe Danone holds a majority stake, for about 5.9 billion yuan ($850 million), Yili announced on Wednesday.

China's dairy giant Yili to bid for Danone's Stonyfield

 Inner Mongolia Yili Industrial, China's biggest food and dairy group, plans to bid for the entire stake of Stonyfield, an organic yogurt producer that Groupe Danone holds a majority stake, for about 5.9 billion yuan ($850 million), Yili announced on Wednesday.

China conditionally approves Dow-DuPont merger

 BEIJING, May 2 (Xinhua) - China has decided to greenlight the merger of chemical giants Dow Chemical and DuPont after nearly a year of antitrust investigations, but asked the two to divest some businesses as preconditions of the approval.

Alibaba buys stake in Lianhua Supermarket to expand bricks-and-mortar retail business

 Alibaba has made another major effort in the physical retail space as it announced today (May 26, Friay) it is acquiring 18 percent of stake in Lianhua Supermarket Holdings, an affiliate of local retail conglomerate Bailian Group.

Chinese wine group buys three vinyards in Chile

 China's wine company, Yantai Changyu Pioneer Wine, has signed an agreement with Chile's Bethia group to buy three vineyards in the South American country for over 50 million U.S. dollars.


Average food prices in 50 citiesMay11-20, 2017




Current price


Percentage changes

as compared to last period

(%,May1-10, 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 priceMay2017

 Pork (Lean):

RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       05/11/17-

B.       05/01/17-

C.       04/11/17-

D.       05/11/16-













RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        05/11/17-

F.        05/01/17-

G.       04/11/17-

H.       05/11/16-













RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         05/11/17-

J.         05/01/17-

K.       04/11/17-

L.        05/11/16-












Source: China Animal Agriculture Association