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China Agricultural Newsletter - September 2017



Laws, Regulations and Policies

China sets targets for supply-side structural reform in agriculture

 BEIJING - China's State Council Friday released a guideline on accelerating supply-side structural reform in agriculture, specifying major tasks and targets for the sector's development in the coming years.

Govt to step up development of grain industry

 The State Council has issued a circular calling for faster development of China’s grain industry and agricultural supply-side structural reform, to enhance agricultural efficiency and raise farmers’ income.

China to reinforce regulation on pesticide, veterinary medicine

 The State Council issued a notice on Sept 22 to enhance regulation on pesticide and veterinary medicine to safeguard food safety.

China targets farm waste as a 'clean' power source

 BEIJING - China will pay farmers to turn animal poo into fertilizer and power, the Ministry of Agriculture said on Wednesday, as Beijing cracks down on agricultural pollution that has for years leaked into rivers and lakes, angering Chinese residents.

China extends anti-subsidy duties on EU potato starch for 5 years

 BEIJING - China's Ministry of Commerce (MOC) has decided to extend anti-subsidy duties levied on potato starch imported from the EU for another five years, starting Saturday.

China plans nationwide use of bioethanol fuel by 2020

 BEIJING, Sept. 13 (Xinhua) - China plans to use bioethanol gasoline nationwide by 2020, the National Development and Reform Commission and National Energy Administration (NEA) said Wednesday.

China moves to ensure safety, quality of exported, imported goods

 China publicized a guideline Wednesday to improve its early warning and response systems to ensure the safety and quality of exported and imported goods.

China investigating Brazil poultry dumping claims

 China has launched an anti-dumping investigation into imports of Brazilian chicken after receiving a complaint that the Brazil has been selling its chicken at a price below market value.

China scraps rules for foreign firms

 China has abolished administrative rules for approval and management of representative offices of foreign companies, saying that the move is aimed at ensuring an open and fair business environment for foreign enterprises.

USDA: China Announces a Two-year Transitional Period on the Certificate Requirement for Imported Foods

 On September 25, 2017, China notified the World Trade Organization of an Addendum to the "Measures for the Administration of Certificates Attached to Foods Exported to China” (notified as TBT 1209 and commonly referenced as Measure #327). 

 

USDA: China Notifies Revised Import and Export Food Safety Measures

 On September 13, 2017, China notified the World Trade Organization of the "Measures for the Supervision and Administration of Import and Export Food Safety (draft)" as SPS 1056.  The draft revises China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) Decree 144 and contains six chapters and 57 articles.

Industry and Business

China puts 103 mln hectares of farmland under permanent protection

 China has put 103.3 million hectares of farmland under permanent protection, stating that the areas should not be used for non-farming purposes.

Specialized farmers' cooperatives to promote modern agriculture

 China has 1.93 million specialized farmers' cooperatives with over 100 million rural households participating, according to the State Administration for Industry and Commerce.

Large-scale Chinese pig farms to benefit from subsidy plan

 The Chinese government wants to increase the scale of pig farms throughout the country by implementing subsidy policies to support large, live pig farmers. Furthermore, the efforts in environmental protection are increasing, as China’s cities suffered heavy pollution in 2016. As a result, the deadline for farmers to move out of the forbidden areas in urban regions in China will be in 2017.

USDA: China's Soybean Imports Expected to Hit another Record High in MY17/18 Oilseeds

 Lower government support to corn production continues to stimulate Chinese planting of oilseeds, primarily soybeans.  As a result, MY17/18 soybean acreage is up by 9.8 percent compared to the previous year. 

Pork imports slow in China as domestic pork production rebounds

 China produces roughly half of the world’s pork, generating 55 billion pounds per year since 2013. But, over the past decade it has nevertheless become a leading importer of the meat. Domestic pork production contracted in 2015 and 2016 because of lower pig supplies. That period followed 7 years of growth that drove prices below profitable levels. Imports soared during 2016, as shrinking Chinese pork supplies helped push the country’s pork prices to record levels.

New Hope expands hog herd despite pork supply glut, weak prices

 New Hope Liuhe Co Ltd has announced it increased the size of its hog herd this year, in the face of excessive supplies and prices down at two-year lows, Reuters reported.

Danish Crown takes innovative step to access Chinese pork market

 Signed in Denmark’s capital, Copenhagen, last week, the Memorandum of Understanding covers the meat from 1001 pigs from a Danish Crown cooperative member reserved for sale to Chinese consumers for the New Year in February 2018. The agreement was made with Tmall, one of Alibaba’s e-marketplaces in China.

Belarus starts beef export to China

 MINSK - The first Belarusian companies start frozen beef export to China, the Belarusian Agriculture and Food Ministry said on Tuesday.

HK businessman buys majority stake in Aussie beef processor

 SYDNEY, Sept. 1 (Xinhua) -- Hong Kong businessman Hui Wing Mau has purchased the majority stake in Australian meat processing company Bindaree Beef Group, the company said Friday.

First seaborne shipment of New Zealand frozen meat arrives in China

 ZHENGZHOU - The first shipment of frozen meat imported from New Zealand arrived in Central China's Zhengzhou city, Henan province, on Monday.

New carp species to extend scale of GM produce

 While giant genetically modified Chinese carp may leap onto the nation's dinner tables in about two years, scientists are urging that the promotion of GM fish should be conducted slowly and meticulously to avoid a public pushback.

Dairy players enjoy healthy profits

 Chinese dairy major players have enhanced their market presence by focusing on innovation, with China Mengniu Dairy and Inner Mongolia Yili Industrial Group Co Ltd exceeding market expectations in their half-year report of 2017.

China develops smart pesticide

 Chinese scientists have developed a smart pesticide that, once in the soil, is controllable and recyclable. A team led by Wu Zhengyan, professor with the Technical Biology Institute, under Hefei Institute of Physical Science, Chinese Academy of Sciences, used diatomite, iron magnesium oxide and chitosan to make a compound that can be activated by changes to pH levels in the soil.

Convenience food rebounds in China

 China's convenience food industry has rebounded after a 5 year slowdown, said the Chair of the Chinese Institute of Food Science and Technology, Meng Suhe, at the 17th China Convenience Food Convention in Beijing.

Mexico's agriculture sector keenly eyeing China, says Mexican official

 China is key to Mexico's plan to diversify its agricultural export markets beyond North America, the president of the National Agricultural Council (CNA), Bosco de la Vega, said on Sunday.

Italian wine matures in the Chinese market

 Most Chinese consumers are less familiar with Italian wines than they are with other foreign rivals such as wines from France and Australia, which entered the China market earlier.

COFCO goes global to grow grain security

 COFCO Corp, the country's biggest agricultural products supplier by revenue, plans by 2020 to see 60 percent of its revenue contributed by overseas markets and control up to 50 million metric tons of foreign grain resources to ensure China achieves grain security, said its senior executive.

Chinese e-commerce giant JD.com to form joint ventures with Thai retailer Central Group

 China's second biggest e-commerce company JD.com and Top Thai retailer Central Group will jointly invest 500 million U.S. dollars to establish two joint ventures in Thailand covering e-commerce and fintech services respectively, a statement from Central Group said on Friday.

China's e-commerce player joins hands with Danish top supermarket chain

 China's cross-border e-commerce platform Kaola.com signed an agreement on Wednesday with Denmark's supermarket chain Irma on bringing Danish brands to the Chinese market through the platform.

Statistics

Average food prices in 50 citiesSeptember11-20, 2017

 

Item

Specification/Unit

Current price

(RMB)

Percentage changes

as compared to last period

(%,September1-10, 2017)

Rice

Japonica rice / kg

6.39

-0.2

Flour

Strong flour / kg

6.28

-1.0

Flour

Standard wheat / kg

5.20

0.2

Soy products

Bean curd / kg

4.85

-0.4

Peanut oil

5 Lin barrel bulk / litre

27.94

0.1

Soyabean oil

5 Lin barrel bulk /litre

9.89

0.3

Rape seed oil

Grade 1 in bulk / liter

13.95

0.0

Pork

Rump / kg

26.62

0.1

Pork

Belly meat / kg

28.22

0.3

Beef

Leg / kg

67.52

0.3

Mutton

Leg / kg

60.76

0.7

Chicken

Frozen fresh chicken / kg

22.59

-0.2

Chicken

Breast / kg

20.51

-0.1

Ducks

Frozen fresh duck / kg

18.35

-0.3

Eggs

Fresh eggs in bulk / kg

11.18

1.1

Source: China National Bureau of Statistics

Major meat retail priceSeptember2017

 Pork (Lean):

RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       09/11/17-
09/20/17

B.       09/01/17-
09/10/17

C.       08/11/17-
08/20/17

D.       09/11/16-
09/20/16

(A-B)/B

(A-C)/C

(A-D)/D

31.32

31.38

31.18

34.68

-0.19%

0.45%

-9.69%

 

Chicken:

RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        09/11/17-
09/20/17

F.        09/01/17-
09/10/17

G.       08/11/17-
08/20/17

H.       09/11/16-
09/20/16

(I-J)/J

(I-K)/K

(I-L)/L

20.02

19.94

19.46

19.82

0.40%

2.88%

1.01%

 

Egg:

RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         08/11/17-
08/20/17

J.         08/01/17-
08/10/17

K.       07/11/17-
07/20/17

L.        08/11/16-
08/20/16

(E-F)/F

(E-G)/G

(E-H)/H

9.64

8.74

8.10

8.82

10.30%

19.01%

9.30%

 

Source: China Animal Agriculture Association 

 
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