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China Agricultural Newsletter - April 2018

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@iowaeda.com.

Laws, Regulations and Policies

Policies released to boost China's agricultural growth

 China on Tuesday announced a package of key policies to boost the growth of agriculture for the year, offering more financial support for the sector.

China retaliates with 25% tariff on 106 US imports amid looming trade war

 On April 4, China announced it will impose additional tariffs of 25% on US$50 billion worth of key US imports including soybeans, planes, card, whiskey and chemicals, in a significant escalation in trade tensions between the two countries.

China announces anti-dumping measures on US sorghum

 BEIJING - China's Ministry of Commerce (MOC) announced Tuesday that it will impose provisional anti-dumping measures on grain sorghum imported from the United States.

China to phase out share-holding limits for foreign investors in manufacturing sectors

 BEIJING - China will scrap share-holding limits in the automobile, shipbuilding and airplane manufacturing sectors for foreign investors, the top economic planner said Tuesday.

China working on policies to expand imports: MOC

 China is working on policies and measures to expand imports and ensure the success of the China International Import Expo (CIIE) later this year, said a spokesman for the Ministry of Commerce (MOC) Thursday.

China aims for mature free trade port system in Hainan by 2035

 BEIJING - China is aiming to make the free trade port system and operational mode of Hainan “more mature” by 2035, according to a document unveiled on April 14.

State Council releases rules on external IPR transfers

 The State Council general office issued a notice on the approval of trial working rules on external transfers of intellectual property rights (IPR).

Industry and Business

China makes progress in agricultural green development

 China has made progress in environmental protection and resource conservation in the agricultural sector, Minister of Agriculture and Rural Affairs Han Changfu said Wednesday.

China's farm produce prices retreat last week

 The price index for China's farm produce retreated in the week ending April 22 due to falling vegetable prices, the Ministry of Commerce said Tuesday.

A "good start" for China's agricultural sector, uncertainty remains

 China's agricultural sector made a good start in the first quarter of 2018, but challenges and uncertainty remain, a senior official said Monday.

China's 2017-2018 soybean output predicted to grow 12.8 pct

 China's soybean output from October 2017 to September 2018 is expected to grow 12.8 percent year on year, according to a report by the Ministry of Agriculture and Rural Affairs.

China MOA: areas with no advantages in planting corn should not be blindly expanded

 By Think Real - In January 2018, China’s Ministry of Agriculture (MOA) held a conference on market information of key agricultural products to inform the market operation of major agricultural products in 2017, and reminded that it was inappropriate to blindly expand corn planting in 2018 to avoid the situation of increasing output without increasing income.

China's corn starch business continues to grow

 The booming logistics and small house appliance industries have stimulated China's corn starch business, an industrial report pointed out.

'Seawater rice' may help fill food gap

 Chinese agricultural researchers have selected 176 strains of saltwater-tolerant rice out of more than 1,000 candidates from experimental paddies and expect them to be widely planted across the country in further trials this year.

China's beef imports seen to rise as demand outpaced by production

 China’s expected 1% increase in beef production this year to 7.35 million tonnes won’t be enough to meet the expected 3% increase in domestic demand to 8.4 million tonnes, leading to higher imports, the latest forecast of the US Department of Agriculture (USDA) said.

A small rebound in pig prices is expected in the second half of the year

 Since the Tomb-Sweeping Day, domestic hog price has been adjusted around 10.2 yuan/kg, which is lower than the industry cost of 13 yuan/kg, and hog farming industry has fallen into full loss.

Chinese retaliatory tariff on US beef "unsettles" industry

 China’s proposed retaliatory tariffs of 25% on selected US goods famously cited pork as among the agri-food products, but in fact beef is included in the list, to the dismay of the US cattle industry.

China inspects BSE controls in UK prior to lifting of beef ban

 The process leading to the lifting of China’s BSE (bovine spongiform encephalopathy or mad cow disease) ban on British beef has taken a major step forward with a Chinese delegation arriving in the UK this week to carry out inspections.

China broiler production seen to rise 1% in 2018 as consumer demand returns

 Broiler meat production in China is forecast to increase 1% or by 700,000 tonnes to 11.7 million tonnes in 2018 compared with 2017.

The levy of environmental taxes on large-scale poultry farms will directly increase the cost of farming

 On December 25, 2017, the State Council issued the Regulations on the Implementation of the Environmental Protection Tax Law of the People's Republic of China (hereinafter referred to as the Implementation Regulations), which came into effect on January 1, 2018. Environmental tax is reported on a quarterly basis, and first collection period of environmental tax has started on April 1.

Operating status of listed companies in egg industry is poor, and industrial development mode needs to be innovated

 Compared with hog and white broiler industries, layer industry is the industry with the lowest concentration and the lowest level of industrialization in animal husbandry industry in China. Since the operating status of listed companies in layer industry in 2017 was poor, there is an urgent need for transformation and upgrading of Chinese layer industry.

Belarus to start exporting poultry meat to China

 Five Belarusian poultry factories are going to start selling poultry meat into China, the Belarusian Agriculture and Food Ministry told local media on Wednesday.

Dairy production totaled 4.3 million tons during first two months, up 8% YoY

 Among the total production, production of liquid dairy products (including UHT milk, pasteurized milk, milk beverage and yoghurt) was 3.99 million tons, up 7.9% YoY; powder production was 167 thousand tons, up 7.6% YoY.

China's feed prices increase in light of potential US-China tariffs

 Since March this year, wholesale prices for animal feed in China have increased, as big producers begin reflecting higher costs in their prices, the Nikkei Asian Review reported.

Owing to much pressure, fertilizer production margins in 2018 wouldn't be optimistic

 Along with policies of environmental protection and capacity reduction, listed fertilizer companies saw a great increase in performance in 2017; but, along with the cancellation of preferential policies, the tightening of environment-friendly resource, the adjustments on downstream demand and increasing pressure of costs, fertilizer companies still faced the problems such as a drop in margins, etc. 

China revises down sugar output forecast for 2017-2018

 BEIJING - China's sugar output from October 2017 to September 2018 is expected to reach 10.25 million tons, according to a report by the Ministry of Agriculture and Rural Affairs.

UK's wine and spirit trade body signs deal with China's Moutai group

 The United Kingdom's Wine and Spirit Trade Association, known as the WSTA, has signed an agreement with China's baijiu maker Kweichow Moutai Company with the aim of building a "strategic" cooperative partnership between Britain and China.

Nearly 1,100 companies sign up for int'l import expo

 Nearly 1,100 companies from all over the world have confirmed their attendance at the China International Import Expo (CIIE), the organizing committee said at a ceremony held on Saturday.

Louis Dreyfus buys over China's Sinarmas, acquires oilseeds crushing sites

 Louis Dreyfus Co. (China) Trading Co., Ltd. will buy over Sinarmas Natural Resources Foodstuffs Technology (Tianjin) Co., Ltd., which has under its ownership oilseeds crushing and refining facilities in the Lingang Economic Area of Tianjin’s Binghai New Area district, China.

Statistics

Market Price of Major Agricultural Products in Circulation, April 1-10, 2018

 

Products

Units

Current Price

(CNY)

Price Change over Previous Period

(March 21-31, 2018, CNY)

± Rate (%)

Rice (Japonica Rice)

ton

4351.3

-5.6

-0.1

Wheat (Third-Class of National Standard)

ton

2522.0

-26.4

-1.0

Corn (Second-Class of Yellow Corn,)

ton

1847.0

-53.7

-2.8

Cotton (Ginned Cotton, Third-Class of White Cotton,)

ton

15460.7

 -18.8

 

-0.1

Live Pig (External Triple Crossbreed)

kg

10.3

0.2

2.0

Soybean

ton

3818.3

-10.0

-0.3

Soybean Meal (Crude Protein Content≥43%)

ton

3326.0

164.1

5.2

Peanut (Oil Peanut)

ton

5881.7

-96.2

-1.6

Urea (Small Granule)

ton

1959.5

-12.6

-0.6

Compound Fertilizer (Compound Fertilizer of Potassium Sulfate)

ton

2530.0

0.0

0.0

Pesticide (Glyphosate, 95% Technical Material)

ton

25042.5

-182.5

-0.7

Source: China National Bureau of Statistics

Major meat retail price April 2018

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       04/11/18-
04/20/18

B.       04/01/18-
04/10/18

C.       03/11/18-
03/20/18

D.       04/11/17-
04/20/17

(A-B)/B

(A-C)/C

(A-D)/D

28.54

29.00

30.42

32.86

-1.59%

-6.18%

-13.15%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        04/11/18-
04/20/18

F.        04/01/18-
04/10/18

G.       03/11/18-
03/20/18

H.       04/11/17-
04/20/17

(I-J)/J

(I-K)/K

(I-L)/L

20.48

20.74

20.64

19.26

-1.25%

-0.78%

6.33%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         04/11/18-
04/20/18

J.         04/01/18-
04/10/18

K.       03/11/18-
03/20/18

L.        04/11/17-
04/20/17

(E-F)/F

(E-G)/G

(E-H)/H

9.28

9.30

9.84

7.74

-0.22%

-5.69%

19.90%

 

Source: China Animal Agriculture Association 

 
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