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China Agricultural Newsletter - December 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 push forward agricultural mechanization

 The State Council released a circular on Dec 29, giving instructions on upgrading farm machinery. Agricultural mechanization lays the foundation for transforming the agricultural development mode, and a strong buttress for implementing the rural revitalization drive, the circular said.

China allows U.S. rice imports

 BEIJING, Dec. 28 (Xinhua) - China has allowed imports of rice from the United States, said the General Administration of Customs in a statement on its website Friday.

China removes tariffs on alternative feed that will replace soy

China’s import taxes on alternative meals used in animal feed will be removed in 2019 – a move that is part of efforts to secure raw materials as trade tensions between the country and the US show little signs of abating, Reuters reported. 

Ministry reveals plans to bolster imports in 2019

 China will adjust duties on 706 import items from aircraft engines to pianos and baby's diapers from next year, the Ministry of Finance announced on Monday.

MARA revises and releases the announcement on the heavy punishment for serious illegal acts concerning veterinary drugs

 Recently, the Ministry of Agriculture and Rural Affairs (MARA) has revised and released the Announcement on the Heavy Punishment for Serious Illegal Acts Concerning Veterinary Drugs (Announcement No. 97 of MARA), and abolished its former Announcement No. 2071.

New negative list gives firms equal treatment in market access

 China took further steps in opening up its market to domestic and overseas investors Tuesday by announcing a negative list for market access (2018 version), an institutional innovation to be applied across the country.

China to revise rules on foreign banks

 BEIJING, Nov. 29 (Xinhua) - China Banking and Insurance Regulatory Commission (CBIRC) on Wednesday unveiled a draft instrument on the regulation of foreign banks to solicit public opinions.

Industry and Business

China to ensure 2019 grain output above 600 mln tonnes

 A senior Chinese official said Sunday that the country will move to produce at least 600 million tonnes of grain in 2019. The country also vowed to keep its grain sown area stable at 1.65 billion mu (110 million hectares) next year, the Minister of Agriculture and Rural Affairs Han Changfu said at a work conference.

China secures another year of bumper harvest

 The National Bureau of Statistics (NBS) said Saturday that China has achieved another year of bumper harvest in 2018 with grain output remaining at a high level. The grain output stood at 657.89 million tonnes, down by 3.71 million tonnes or 0.6 percent from last year, the NBS said in a statement on its website.

China's farm produce prices continue to climb

 Prices of farm produce in China continued to climb in the week ending Dec. 23, with a rise in the cost of 30 types of vegetables, data from the Ministry of Commerce showed Wednesday.

Technology boosts China's grain production in past 40 years

 China's grain production has increased from 135 kilograms per mu in 1978 to 367 kilograms recorded in 2017, boosted by indigenous innovation in agriculture, according to the Chinese Academy of Agriculture Sciences (CAAS) on Sunday.

Farm machine imports gain wider market

 China will further open up its agricultural machinery market and offer equal treatment to domestic and foreign makers, which will promote fair competition and bring farmers more benefits, officials said.

Agriculture sector mechanization rate exceeds 66 pct in China

 China has seen an outstanding shift in way of farming with the mechanization rate in the agriculture sector exceeding 66 percent in 2017, an official with the Ministry of Agriculture and Rural Affairs said Wednesday.

China embarks on 2nd wave of soy buying

 Chinese importers returned to the US soy market on Tuesday for their second round of purchases since the two countries agreed to a truce in their trade war, four traders with knowledge of the deals and the US Soybean Export Council said.

New ASF cases reported in China

 China has confirmed new outbreaks of African swine fever in three regions, the Ministry of Agriculture and Rural Affairs report.

China strengthens slaughter regulations to combat African swine fever

 CHINA (Reuters) - China's agriculture ministry said on Wednesday that slaughterhouses will need run African swine fever virus test for pig products before selling them to the market, in a move to control spread of the highly contagious disease.

China discovers traces of swine fever virus in animal feed products

 China’s General Administration of Customs said on December 25 that the country has found the African swine fever virus in some protein powders that used pork blood as an ingredient, Reuters reported.

China starts importing meat products from Kazakhstan

 A batch of frozen mutton from Kazakhstan arrived in the city of Urumqi in northwest China's Xinjiang Uygur Autonomous Region on Wednesday, marking the first time China imported meat products from Kazakhstan, local customs announced on Thursday.

China buys US pork despite trade tariffs as ASF spreads

 China is loading up on US pork, despite import tariffs imposed due to the trade war, as African swine fever ravages the Chinese hog herd.

Brazil meat exporters seek more shipments

 Brazilian chicken exporters on Wednesday formalized a proposal to set minimum export prices for sales to China in a bid to lift anti-dumping deposits levied on the country's products, said an attorney representing the ABPA meat industry group.

Massive growth prospects for nation's dairy market over the next five years

 China will see significant growth potential in the consumption of organic milk, yogurt and cheese products, fueled by increasing demand for premium products from quality-conscious consumers, according to a new report.

Global e-commerce to boost imports

 BEIJING - A new policy to be announced soon will allow consumers in China to buy more high-quality imported products via cross-border e-commerce, according to a report in the Economic Information Daily.

Online consumption in Chinese counties goes high-end: report

 HANGZHOU, Dec. 28 (Xinhua) - Consumers in Chinese counties are increasingly opting for smart and quality products online as robots and imported goods are gaining popularity, a recent report showed.

China's Alibaba to open e-commerce hub in Belgium

 Chinese e-commerce giant Alibaba has inked an agreement with the federal government of Belgium to open its first Electronic World Trade Platform (eWTP) in Europe with the aim of promoting long-term cross-border trade.

Statistics

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

 

Products

Units

Current Price

(CNY)

Price Change over Previous Period

(December 1-10, 2018, CNY)

± Rate (%)

Rice (Japonica Rice)

ton

4286.3

0.0

0.0

Wheat (Third-Class of National Standard)

ton

2501.2

-7.4

-0.3

Corn (Second-Class of Yellow Corn,)

ton

1884.3

-18.8

-1.0

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

ton

15593.7

-20.6

 

-0.1

Live Pig (External Triple Crossbreed)

kg

13.4

-0.3

-2.2

Soybean

ton

3923.3

-24.5

-0.6

Soybean Meal (Crude Protein Content≥43%)

ton

2997.8

-80.3

-2.6

Peanut (Oil Peanut)

ton

6278.1

-9.1

-0.1

Urea (Small Granule)

ton

2048.2

-19.2

-0.9

Compound Fertilizer (Compound Fertilizer of Potassium Sulfate)

ton

2635.0

0.0

0.0

Pesticide (Glyphosate, 95% Technical Material)

ton

27053.1

-609.4

-2.2

Source: China National Bureau of Statistics

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

 

Products

Units

Current Price

(CNY)

Price Change over Previous Period

(December 1-10, 2018, CNY)

± Rate (%)

Rice (Japonica Rice)

ton

4286.3

0.0

0.0

Wheat (Third-Class of National Standard)

ton

2501.2

-7.4

-0.3

Corn (Second-Class of Yellow Corn,)

ton

1884.3

-18.8

-1.0

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

ton

15593.7

-20.6

 

-0.1

Live Pig (External Triple Crossbreed)

kg

13.4

-0.3

-2.2

Soybean

ton

3923.3

-24.5

-0.6

Soybean Meal (Crude Protein Content≥43%)

ton

2997.8

-80.3

-2.6

Peanut (Oil Peanut)

ton

6278.1

-9.1

-0.1

Urea (Small Granule)

ton

2048.2

-19.2

-0.9

Compound Fertilizer (Compound Fertilizer of Potassium Sulfate)

ton

2635.0

0.0

0.0

Pesticide (Glyphosate, 95% Technical Material)

ton

27053.1

-609.4

-2.2

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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