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China Agricultural Newsletter - November 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

China to lift ban on grain imports from Russia

Russia and China are about to agree on terms regarding the lifting of China’s ban on grain deliveries from Russia, which has in place since 1997.

China to stockpile corn and soy at higher price

China announces it will stockpile locally-produced corn and soy at higher price to aid farmers’ income. The government will pay CNY4,600 (US$737) per tonne of soy and up to CNY2,140 (US$343.22) per tonne of corn to farmers in northeastern provinces, the country’s major corn area, the State Administration of Grain said.

China sold 16% of soy reserve

A total of 65,495 tonnes, or 16.5%, of the 397,204 tonnes on offer from the 2010 crop was sold, the National Grain & Oil Trade Center said.

China bought two million tonnes of cotton for reserve

China had acquired 1.99 million tonnes of fresh cotton for national reserves. Such a purchase volume accounts for nearly 30% of the country output in 2012. The association earlier predicted that China would yield 6.96 million tonnes of cotton this year.

China strives to foster 100 agro mega-firms

BEIJING - China will strive to foster 100 agricultural companies with annual sales exceeding 10 billion yuan ($1.59 billion) in the next three to five years, a senior agricultural official said on Tuesday.

Industry and Business Watch

Farm produce prices rise for fourth week

Prices of farm produce in China inched up for the fourth straight week during the seven days ending Nov. 25, according to figures released by the Ministry of Commerce on Tuesday.

China to increase grain output by 50 million tonnes yearly

China plans to increase grain production by 50 million tonnes yearly towards 2020 by actively promoting the application of technology and exploring new methods to stabilize production.

China soy crushers affected by unstable world prices

Chinese crushers started to stockpile soy when the USDA forecast in September that the country will see its smallest soy harvest in nine years as the world’s largest soy exporter was hit by the most severe droughts in about 50 years in the summer.

China to see 4.1% rise for corn production

China's corn production is expected to reach 201 million tonnes in 2012, a 4.1% rise over 2011. As the second largest corn producing and consuming country in the world after the US, China is improving agricultural technology to raise corn output and ensure grain safety.

Farmers reluctant to sell corn as prices disappointing

Chinese farmers in some major corn-growing regions have shown reluctance to sell corn at prices lower than what they had expected due to higher production costs and grain loss from natural disasters.

Super rice breed produces bumper harvest

A super rice breed called Yongyou 12 has produced a bumper harvest of 14.38 metric tons a hectare at a 8.5-hectare demonstration base in Ningbo, Zhejiang province.

China feed wheat use to grow 6 percent in 2013

China's use of wheat in animal feed is predicted to grow 6 percent in 2013, to 12.4 million metric tons, with imports increasing to meet the needs domestic production alone can't fulfill, according to agricultural researchers.

Tough competition squeezes agri-market

Rising competition and frequent freaky weather are forcing multinational agricultural companies to step up their research efforts in China. One such company is DuPont Pioneer, a wholly-owned subsidiary of DuPont and one of the world's major companies engaged in developing and supplying plant seeds.

Agri machinery market attracts leading global manufacturer

A major China granary attracts one world-leading agricultural machinery manufacturer as it anticipates another record-high autumn harvest.

China pursuing self-sufficient pig production

Pork and China are inextricably linked in the minds of many Westerners - not only is pig meat known to be an essential part of the Chinese diet, the country also provides a vital market for the international pig industry.

China pig producers discuss scientific advancements at EuroTier Europe-China summit

Chinese pig producers are looking to raise the scientific level of their systems and accelerate production - and they are ready to work with their colleagues in Europe in a joint effort to do this and improve the world-wide industry.

JSR franchises to China's Tianjin Bo Hui Rui Kang

JSR has improved its position in China by inking a franchise agreement with Tianjin Bo Hui Rui Kang Livestock Breeding Co., Ltd, which is based in the Jinan district of Tianjin in Northern China.

China sees 201% rise for beef imports from Australia

China's beef imports from Australia rises 201% on-year for September 2012, reaching 5,275 tonnes. Australia is the largest beef supplier to China during September, with total imports lifting 122% on-year, to 1,786 tonnes. Chinese imports of Uruguayan beef rose 132% on-year, to 1,355 tonnes, while volumes from New Zealand increased 319%, to 892 tonnes.

China, Brazil, India to lead world broiler growth

Rising incomes, an expanding middle class and stronger demand for animal protein have propelled broiler production in China, Brazil and India, and combined these countries represent 85 percent of the forecasted growth in global production for 2013, according to the U.S. Department of Agriculture's latest report.

China feed output up 4 percent in 2011-2012

The total feed output in China rose 4 percent year over year to 169 million tons, accounting for around 20 percent of the global total and ranking number one in the world, according to the latest report from Research and Markets.

Olympus leads acquisition bid for stake in China's Huaxia Dairy

Pan-Asian private equity company, Olympus Capital, is leading an acquisition effort for an additional US$50 million stake in China’s milk producer, Huaxia Dairy Farm.

Twin-farm agreement to complete NZ dairy hub in China

New Zealand dairy giant Fonterra announced Friday that it is set to step up milk production in China after signing an investment agreement to develop two more large farms in Hebei province.

China's Bright Food completes acquisition of majority holding of UK's cereals manufacturer

LONDON, Nov. 5 (Xinhua) -- Bright Food Group, one of China's largest food groups, announced on Monday that it had completed the acquisition of 60 percent of the share capital of British Weetabix Food Company.

Alltech and Chinese universities - research alliances

Alltech, animal health company, in conjunction with the top Chinese universities and academic research institutes has officially launched Alltech - Chinese University/Institute Research Alliances platform this October.

China's pesticide industry experiences brisk development

In the past decade, China's pesticide industry has experienced rapid development and now plays an important role in pesticide production in the world. 

Agricultural insurance shelters farmers in grain belts

HARBIN - China's fledgling agricultural insurance sector has buffered farmers against greater losses after hail, pest outbreaks and a massive typhoon hit China's breadbasket, the northeastern provinces of Heilongjiang and Jilin, a local official said Thursday.

Chinese outbound investment accelerates

China's overseas mergers and acquisitions gained traction in recent years as domestic policies encouraged cash-abundant companies to spend on foreign assets amid the worsening eurozone debt crisis, new data has indicated.

COFCO sows seeds of further overseas growth

China National Cereals, Oils and Foodstuffs Corp, or COFCO, plans to accelerate its expansion program abroad to meet growing demand at home.

New Hope to expand its overseas push

The leading Chinese agribusiness company New Hope Group is expanding to South Africa, Egypt, and Eastern and Central Europe after a decade of exploration in Southeast Asia.

Zhong Fu to develop Western Australian agro project

A Chinese property company was awarded the rights on Tuesday to develop a farm project in Western Australia, following a series of high-profile deals related to agricultural resources in the country involving Chinese investors.

Foreign cheese firms eye big slice of China's market

China's cheese market is booming as more diners in the nation take their first bite of this still relative newcomer to their plates, offering golden opportunities to cheese producers across the globe.

Italian coffee group steams ahead in China

Italian fine-coffee producer illycaffe SpA has begun accelerating its business in China as it expects the market to sharply boom over the next few years, the company's chief executive said.

Brazilian farmers open office in China to increase bilateral trade

In order to increase bilateral agricultural trade and attract Chinese investment in Brazilian infrastructure, the Brazilian Confederation of Agriculture and Livestock, the main body representing millions of farmers in Brazil, will open an office in Beijing next Wednesday (Nov. 14)


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


Current price (RMB)
Percentage changes as compared to last period
(%, Nov. 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 November 2012

           Pork (Lean):

                                                                                                                       RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
A.       11/11/12-11/20/12
B.       11/01/12-11/10/12
C.       10/11/12-10/20/12
D.       11/11/11-11/20/11
                                                                                                                 RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
E.        11/11/12-11/20/12
F.        11/01/12-11/10/12
G.       10/11/12-10/20/12
H.       11/11/11-11/20/11
                                                                                                                           RMB1.00 yuan/kg
Average Sales Price (Street markets & Supermarkets)
Var. Percent
I.         11/11/12-11/20/12
J.         11/01/12-11/10/12
K.       10/11/12-10/20/12
L.        11/11/11-11/20/11
Source: China Animal Agriculture Association