site map
Contact us
Mail to us

China Agricultural Newsletter - September 2012

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

Laws, Regulations and Policies

Implementation of agro law to be checked

China's top legislature will start a new wave of inspections on the implementation of its law on agriculture in September. Five inspection teams, organized by the Standing Committee of the National People's Congress, will be sent to 10 provincial regions including Shanxi, Inner Mongolia and Yunnan, according to a meeting of the NPC Standing Committee held on August 26.

US$11.35 billion spent on making farm produce safer by 2015

In an effort to promote product safety, China plans to spend RMB 72.02 billion (US$11.35 billion) during the 2011-2015 period on improving a quality inspection system for farm produce.

US$5.93 billion spent on farmland improvement

The government will spend RMB37.36 billion (US$5.93 billion) to improve the quality of farmland this year, the Ministry of Finance said on September 6.The fund, which is a part of the country's comprehensive agricultural development plan, includes RMB21.92 billion from the central budget and RMB12.05 billion from local budgets, the ministry said.

State soybean reserves released to curb prices

China has started offering 400,000 tons of soybeans from state reserves every two weeks as a measure to help offset high animal feed prices and control domestic inflation, according to reports. Soybean imports have decreased since early June when prices began to rise. The domestic price of soymeal has risen 60 percent in 2012; soyoil and soybeans have gained 13 percent and 15 percent, respectively.

State purchase price raised for rice

China's top economic planning agency said on September 4 that it will raise the minimum purchase price for mid-season and late rice in 2012, as severe droughts in the United States and other grain-producing countries have driven up food prices in the global market. The minimum purchase price for mid-season and late indica rice will be raised to RMB2.5 yuan (US$0.39) per kg, up 16.82 percent from a year earlier, according to a statement by the National Development and Reform Commission.

State purchase price raised for wheat

China will lift the government purchasing price for wheat in 2013 by about 10 percent from this year, the country's top economic planner said on September 29. The move is intended to stimulate grain production, the National Development and Reform Commission said in a statement.

Shanghai drafts law against swill oil dealers

To prevent swill oil from flowing into kitchens, companies and individuals who illegally collect and process swill oil or gutter oil will face hefty fines of up to RMB100,000 yuan (US$15,900), Shanghai officials warned. Restaurants that sell swill oil to collectors will face fines of up to RMB50,000 yuan under a new draft law that is open for public discussion from September 12 to 19, the officials said.

Industry and Business Watch

Farm produce prices edge up

China's farm produce prices in 36 large and medium-sized cities edged up slightly during the week of September 17 to 21, new figures from the Ministry of Commerce have indicated.The retail price of eggs continued to climb, up 0.4 percent from a week earlier, according to a statement posted on the ministry's website.

Grain output increase for ninth consecutive year

China is expected to see an increase in grain output for a ninth consecutive year in 2012 if rice producing regions in the south are not affected by severe low temperature during the late season.

Grain imports increase 261% on-year from January to July 2012

China’s Ministry of Agriculture announced that the country’s grain imports rose 261.3 percent on-year to 8.68 million tonnes for January to July 2012.

Soy imports at lowest monthly level for August

China’s soy imports reached 4.42 million tonnes in August 2012, the lowest monthly level in six months, as rising prices and falling global supplies affect demand in the country.

Soy crushers face low operating rate on soy shortage

The operating rate for China’s major soy crushing firms is lower on-year and is expected to decline further with less soy imports and depleting stocks.

Corn imports may decline by more than 80percent in 2013

China is expected to import one million tonnes of corn in 2013, China National Grain and Oils Information Center (CNGOIC) said in a report, which would be the lowest imports of the grain made by the country since 2009. In 2012, China is estimated to buy 5.5 million tonnes.

Rapeseed import increased to deal with soy shortages

China has increased rapeseed imports to cope with soy shortages expected in the coming months as US supplies continue to be affected by an on-going drought crisis.

Imports of DDGS to grow this year

China's imports of DDGS will continue to grow on rising animal-feed production, said, an Internet-based agricultural exchange.

Wen's Group invests US$238 million for a pig farm in Shaanxi Province

Guangdong Wen’s Food Group Co., Ltd. is investing a total of US$238 million for a pig farm in Shaanxi Province. The project should be completed by 2015 and is expected to breed 1.06 million pigs.

Beijing DQY Agriculture to establish biggest egg production facility

Beijing DQY Agriculture Technology signed an agreement with Mingguang City in Anhui Province to invest in a base capable of raising seven million layer chicken in the next four years.

OSI announces new poultry facility and joint venture in China

OSI announces that its China unit has started construction of a new poultry processing facility in the country and signed a joint venture on a vertically integrated poultry operation.

Poultry forum highlights industry food safety

More than 170 industry leaders from national and multinational poultry integration management and operations met to discuss issues of food safety, business culture and priorities, animal health, biosecurity, sustainability, food quality, safe feed and new technical developments at the China Poultry Forumheld September 21 in Beijing.

Canned meat, poultry reach 43percent combined growth for 2007-2011

China’s canned meat and poultry market is presently worth US$3 billion, showing rapid growth over the past five years, with a combined yearly growth rate of 43 percent from 2007 to 2011.

China and Denmark to form stronger partnership for livestock production

China and Denmark have agreed to stronger cooperation on livestock production, with a key focus on sharing knowledge and expertise on pig farming.

Royal Dairy to invest in beef industrialization project

Guangxi Royal Dairy announces plans to invest in the establishment of a beef industrialization project. The project, with a construction period of five years, will be constructed by a wholly-owned subsidiary of the company.

Shanghai Dairy facing punishment over cheese for babies

Shanghai's quality watchdog said on September 20 it has ordered Bright Dairy to suspend production of a cheese product for babies with a banned additive. Bright Dairy will be punished severely over its loopholes in production and dishonest practices, said Shen Weimin, deputy director of the Shanghai Quality and Technical Supervision Bureau. The dairy giant was found to blur the product target age in its reports to authorities and change ingredients without getting permission.

Tongwei commences operation for animal feed facility in Vietnam

Tongwei, one of China’s 100 largest private firms, commences operation for an animal feed facility on September 8, with an investment of US$10 million in Vietnam’s northern province of Hai Duon.

Sugar production may climb 19 percent

China, the world's biggest sugar importer, may harvest its 2nd largest sugar crop after favorable weather spurred farmers to increase planting, potentially cutting overseas purchases and widening a global surplus.

Kellogg inks China JV to gain market share

Kellogg Co. is expanding its presence in China's fast growing breakfast and snack foods market through a new joint venture with Singapore palm oil producer Wilmar International, months after the US cereal maker sold its stake in a cookie and cracker manufacturer in the country.Kellogg said Wilmar will contribute infrastructure, supply chain scale and its sales and distribution network in China to the 50-50 joint venture.

More farmers sign up to food chains

More Chinese farmers are resorting to food chain partnership projects to improve their agricultural yields and raise the quality of their harvest, say insiders. The projects, equipping farmers with technology and instructions on agricultural practices, guide them in reducing pesticides for safer and better products and cuts costs by helping them to sell directly to wholesalers.


Average food prices in 50 cities September 11-20, 2012

Current price (RMB)
Percentage changes as compared to last period
(%, Sept. 1-10, 2012)
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 / kg
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 price September 2012


Pork (Lean):
                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       9/11/12-9/20/12
B.       9/01/12-9/10/12
C.       8/11/12-8/20/12
D.       9/11/11-9/20/11

                                                          RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        9/11/12-9/20/12
F.        9/01/12-9/10/12
G.       8/11/12-8/20/12
H.       9/11/11-9/20/11

                                                                       RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         9/11/12-9/20/12
J.         9/01/12-9/10/12
K.       8/11/12-8/20/12
L.        9/11/11-9/20/11