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China Agricultural Newsletter - August 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

China to release wheat reserves due to impacts from bad weather

 After outputs in major growing areas are impacted by bad weather this year, China will be dispensing state wheat reserves, according to an official at the country’s grain administration.

China gives insurance subsidies to major grain crops' seed production

 BEIJING, Aug. 10 (Xinhua) - China has included the production of rice, corn and wheat seeds into a fiscal subsidy program for agricultural insurance.

China to phase out high-toxic pesticides in 5 years, reevaluate pesticides registered for above 15 years

 China Ministry of Agriculture and Rural Affairs would phase out high-toxic pesticides in the next five years, conduct a reevaluation of old pesticides registered for above 15 years, including glyphosate, carbendazim and imidacloprid, and expedite the process of formulation of industry standard applicable to niche crop pesticide registration and pesticide limit governance.

China announces fourth outbreak of African swine flu

 Home to the world’s largest pig herd, China declared its fourth outbreak of the African swine flu (ASF) on Thursday. The country reported that more than 400 pigs infected as the disease entered a fourth province, causing rampant worries about its rapid speed.

China begins imposing tariffs on 16-bln-dollar U.S. products

 China's tariffs on imported products from the United States worth about 16 billion U.S. dollars took effect at 12:01 p.m. Thursday.

Draft e-commerce law better regulates operators

 BEIJING - Chinese legislators on Monday began reviewing the latest draft e-commerce law, which was submitted to the National People's Congress (NPC) Standing Committee for the fourth reading at a bimonthly session running from Monday to Friday.

Industry and Business

Unfavorable weather conditions temporarily push up China's farm produce prices

 Farm produce prices in China continued to climb in the week ending on Aug. 26 as unfavorable weather conditions across the country affected supply, data from the Ministry of Commerce showed Tuesday.

China's early rice yield drops amid structural reform

 China produced less rice in the first harvest period of the year compared to 2017 amid agricultural supply-side structural reform, official data showed Friday.

Good harvest expected for Chinese soybeans but good price is key

 U.S. soybeans have become pricier for Chinese importers following 25 percent retaliatory tariffs. Many hope China can reduce its reliance on these legumes, with one solution being to grow soybeans domestically.

China possibly decreasing its soybean imports by over 10 million tonnes

 In addition to the new soymeal technology and use of supplements such as sunflower seeds, rape seeds and palm kernels, declining demands of soybean may be the integral reasons leading to the likelihood of China reducing its soybean imports by 10 million tonnes in 2018.

Soybean meal substitute imports supplement China's animal feed supply: experts

 BEIJING, Aug. 21 (Xinhua) - The expansion of soybean meal substitute imports will be an effective supplement to China's animal feed supply, experts observed.

China's alternatives to deal with costlier US soybeans due to US-China tariffs

 China’s livestock sector would potentially be burdened by costlier US soybeans, but Chinese pig farmers and analysts believe there are others ways to mitigate the impact.

Weak Chinese pig prices seen to drag down trade

 Chinese live pig prices are still around 10% lower than year earlier levels as of late July despite some upward momentum since May, according to AHDB pork.

Pig cull tops 20,000 as swine fever hits farmers

 China's pig cull topped 20,000 animals on Wednesday as officials try to halt an outbreak of deadly African swine fever (ASF) in the world's largest pig market, already reeling from a year-long price rout.

Pesticide Powerhouse: A Complete Guide to China's Rapid Rise to Global Agrochemical Dominance

 China’s pesticide output skyrocketed from less than 1 million MTs in 2004 to 3.7 million MTs in 2014 due to a variety of government policies, including an export tax rebate program that made its products more competitive in the international market

China strengthens scientific and technical support of the potato industry

 On August 1, the National Tuber Crop Research Center of CAAS was established and inaugurated in Beijing. Vice minister Qu Dongyu attended and spoke at the ceremony.

AI tech boosting smart agriculture

 As an old saying goes, agriculture is a trade "that solely depends on the sky". Most livestock and field crops rely heavily on the weather for their comfort, and providing water and energy. But China's more than 1.3 billion residents, a growing number of whom are becoming mid-income earners, are building up such an appetite that farmers are having to change the way they grow and sell food.

From Gobi to vineyards: Expanding wine industry in NW China

 YINCHUAN - In the past few years, a large expanse of Gobi desert in Northwest China has gained an international reputation due to its vineyards.

Guizhou seeks to become China's largest tea exporter by 2020

 GUIYANG - Southwest China's Guizhou province has set a target to become the country's largest tea exporter by 2020, exporting 50,000 tons annually.

Agritech company launches remote crop monitoring

 AirAG Technology Ltd unveiled the world's first wireless agricultural panoramic monitoring product on Monday in Guangzhou, the capital of Guangdong Province.

Yili likely to buy stake in Pakistan firm

 Inner Mongolia-based group looks to expand overseas via proposed deal. North China's Yili Industrial Group Co Ltd said it plans to acquire a stake of no more than 51 percent in Pakistani dairy maker Fauji Foods Ltd, according to a statement released on Tuesday.

JD.com removes rainbow trout products amid controversy over salmon

 Chinese e-commerce giant JD.com has taken all rainbow trout products off its shelves, as discussions are heating up as whether rainbow trout can be labeled and sold domestically as salmon in China. 

Alibaba eyes revamp in food sector

 After taking the lion's share of China's e-commerce sector, Alibaba Group Holding Ltd is looking to revamp the food sector by addressing the imbalance between supply and demand.

Fast-food chain Yum China rejects buyout offer from Hillhouse

 Fast-food chain operator Yum China Holdings Inc has rejected a $17.6 billion buyout offer from a consortium led by Chinese investment firm Hillhouse Capital Group, quashing what would have been one of Asia's biggest deals this year, a person with direct knowledge of the matter said.

Walmart, JD back online grocer

 Chinese online grocery and delivery company Dada-JD Daojia announced on Thursday it had raised $500 million from US-based retail giant Walmart Inc and Chinese e-commerce behemoth JD in its latest round of financing.

Coca-Cola embarks on 'healthy' growth route

 Coca-Cola Co, the world's largest beverage maker, is diversifying its product range in China by introducing more healthy and functional products to cater to the changing consumer preferences in the country.

Kroger to sell groceries in China via Alibaba

 Kroger, the largest US supermarket chain, will start to sell some of its products to Chinese shoppers through a website owned by internet giant Alibaba, the latest move by the supermarket chain to boost its digital business.

China's outbound investment sees steady growth in Jan.-July period

 China's non-financial outbound direct investment (ODI) continued steady growth in the first seven months of the year, according to official data.

Statistics

Market Price of Major Agricultural Products in Circulation, August 11-20, 2018

 

Products

Units

Current Price

(CNY)

Price Change over Previous Period

(August 1-10, 2018, CNY)

± Rate (%)

Rice (Japonica Rice)

ton

4325.0

0.0

0.0

Wheat (Third-Class of National Standard)

ton

2445.8

6.5

0.3

Corn (Second-Class of Yellow Corn,)

ton

1771.0

1.4

0.1

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

ton

15989.3

 -32.1

 

-0.2

Live Pig (External Triple Crossbreed)

kg

14.1

0.2

1.4

Soybean

ton

3660.8

8.1

0.2

Soybean Meal (Crude Protein Content≥43%)

ton

3200.2

81.4

2.6

Peanut (Oil Peanut)

ton

5677.8

61.1

1.1

Urea (Small Granule)

ton

1994.6

50.6

2.6

Compound Fertilizer (Compound Fertilizer of Potassium Sulfate)

ton

2580.0

0.0

0.0

Pesticide (Glyphosate, 95% Technical Material)

ton

27650.0

-35.9

-0.1

Source: China National Bureau of Statistics

Major meat retail price July 2018

 Pork (Lean):

                                                                           RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       07/21/18-
07/30/18

B.       07/11/18-
07/20/18

C.       06/21/18-
06/30/18

D.       07/21/17-
07/30/17

(A-B)/B

(A-C)/C

(A-D)/D

28.26

28.08

27.80

30.98

0.64%

1.65%

-8.78%

 

Chicken:       

                                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        07/21/18-
07/30/18

F.        07/11/18-
07/20/18

G.       06/21/18-
06/30/18

H.       07/21/17-
07/30/17

(I-J)/J

(I-K)/K

(I-L)/L

20.48

20.44

20.46

19.12

0.20%

0.10%

7.11%

 

Egg:

                                                         RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         07/21/18-
07/30/18

J.         07/11/18-
07/20/18

K.       06/21/18-
06/30/18

L.        07/21/17-
07/30/17

(E-F)/F

(E-G)/G

(E-H)/H

9.60

9.34

9.52

8.00

2.78%

0.84%

20.00%

 

Source: China Animal Agriculture Association 

 
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