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China Agricultural Newsletter - December 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

Priorities of agricultural and rural work for the years ahead identified

The Central Rural Work Conference was held in Beijing during Dec. 21-22, 2012. Chinese Vice Premier Hui Liangyu attended and addressed the Conference. Ma Kai, member of the Political Bureau of the CPC Central Committee chaired the first plenary session.

China eyes national markets to stabilize food prices

China will establish national-grade agricultural markets in production regions in 2013 to prevent turbulence in farm produce prices.

China sets 2013 grain import quota

China could import 9.64 million tonnes of wheat in 2013. Of the wheat quota, 90% will be allocated to state-owned enterprises.

China to boost circulation of fresh farm produce

he Ministry of Commerce (MOC) on Wednesday issued a guideline to facilitate the circulation of fresh agricultural products over the next three to five years.

China and US agree on major trade measures

Chinese and US officials agreed on a number of measures, including export controls and investment, during trade talks in Washington. The US pledged to address concerns over fair treatment for Chinese investment in the US, and China vowed to strengthen protection of intellectual property rights, at a meeting of the China-US Joint Commission on Commerce and Trade in the US capital on Wednesday.

China authorities order KFC, McDonald's suppliers to stop production

Due to the use of chemical-laced feed to accelerate growth of chickens, two slaughterhouses in Shandong, China, including one that supplied chickens to KFC and McDonald's, have been ordered to stop production until samples can be tested.

Industry and Business Watch

China's farm produce prices climb further

Farm produce prices have extended an upward trend in 36 large and medium-sized cities in China, the Ministry of Commerce said Tuesday.

Pressure mounts over arable land resources

China's land watchdog is facing increasing pressure over protecting the country's fragile arable land and mineral resources, a senior official said.

China spends big on farmland improvement

China, the world's largest grain consumer, saw its grain imports jump twofold during the January-to-November period compared with a year earlier. This has triggered widespread concern about the country's long-asserted goal of maintaining its food security by domestically producing 95 percent of the rice, corn and wheat it consumes.

China's grain imports sprout in Jan-Nov

China, the world's largest grain consumer, saw its grain imports jump twofold during the January-to-November period compared with a year earlier. This has triggered widespread concern about the country's long-asserted goal of maintaining its food security by domestically producing 95 percent of the rice, corn and wheat it consumes.

China emerges as top buyer of Australian wheat

China has re-emerged as a top buyer of Australian crop as it imported 2.39 million tonnes of Australian wheat in 2011-12, more than four times from the previous season's purchases.

China expects 11.6% fall for soy production in 2012

China's soy output is expected to reach 12.8 million tonnes in 2012, a decline of 11.6% from 2011. As China focuses on boosting output of corn, wheat and rice, it has become increasingly depended on foreign soy supplies, and now buys 60% of globally traded soy. Imports are expected to reach a record 57.5 million tonnes this year.

China aborts soy purchase from the US

China has cancelled a previous purchase of 300,000 tonnes of soy for delivery in 2012-13, the current marketing year that began September 1, as reported by the USDA on December 18, 2012.

China's corn imports may drop by over 50% next year

Due to high US prices, Chinese corn imports are expected to fall by more than half next year, and a rise in overall consumption will put domestic supplies under more pressure despite another record harvest.

China quarantines Argentinean corn due to unapproved GM strains

Two containers holding corn from Argentina were quarantined by the Chinese authorities after detecting genetically modified strains that has not been approved beforehand.

China buying Ukrainian corn for first time

Ukrland Farming, Ukraine's biggest agro-industrial company, will export corn to China, the world's largest consumer of the cereal.

China sees rising pork prices due to climatic conditions

Low climatic temperatures have led to increased pork prices which were up 5.2% last week. Northern and northeastern China reported the highest price hikes. Jilin, Liaoning and Heilongjiang provinces saw rises of more than 10%.

Tianli Agritech - new black hog facility in China

Tianli Agritech, Inc., a leading producer of breeder hogs, market hogs and black hogs based in Wuhan City, China, announced it completed construction of a new feed facility located in Enshi Autonomous Prefecture, Hubei, China.

Australia's meat exports to China at record volume in November

Australian meat exports to China have reached new records in November, with beef and veal shipments to China reaching a record 7,955 tonnes, up 6% on the previous month and up 729% on-year. 

US meat organizations call for China to abandon pathogen policy

US meat industry organizations have called on China to cancel plans for a zero tolerance policy for pathogens in cooked meat and poultry.

China firms interested to acquire Australia dairy assets

The sale of the four aggregated dairy farms, belonging to private New Zealander firm, Rosmerta, has attracted interest from Chinese companies. Large Chinese beverage company Wahaha, known to be keen to buy Australian dairy farms that can supply milk powder to China, is expected to visit the four lactanz dairies early next year.

State-owned enterprises urged to expand overseas

China's overseas investment has risen sharply in recent years. And as the country pushes ahead with its "Go-Out" strategy, State Owned Enterprises are being urged to expand outward investment further.

China to drive global agricultural commodity demand over next decade

China's continued influence on agricultural commodity demand and global economic growth stand out as a key issue for North American food, beverage and agribusiness in 2013 and over the next decade, according to a recent poll of Rabobank clients. The poll of over 350 executives from leading companies in the North American food, beverage and agribusiness industry was conducted at Rabobank's Markets Forum held in New York City.

Investment in agriculture is a growing trend

Deep processing in the agriculture sector is becoming a new hot spot for investment, as venture capital and private equity companies seek new outlets in the gloomy economy.

Sinograin looks at overseas deals to feed demand

Sinograin Oils Corp, the oil-making arm of the State-owned conglomerate China Grain Reserves Corp, is targeting overseas investments in South America and Southeast Asia to strengthen its control over the supply of foodstuffs such as soybeans and palm oil.

Wal-Mart planning 100 new Chinese stores

GUIYANG, Dec. 13 (Xinhua) -- U.S. retail giant Wal-Mart Stores, Inc. plans to open more than 100 new stores in China over the next three years, a senior executive said on Thursday.

Starbucks opens farmer support center in China

KUNMING, Dec. 12 (Xinhua) -- Starbucks opens its farmer support center Wednesday in Pu'er city in southwest China's Yunnan Province to ensure a long-term supply of high-quality coffee beans from the province.


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

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

Pork (Lean):

                                                                                                                                    RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       12/11/12-12/20/12

B.       12/01/12-12/10/12

C.       11/11/12-11/20/12

D.       12/11/11-12/20/11













                                                                                                                            RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        12/11/12-12/20/12

F.        12/01/12-12/10/12

G.       11/11/12-11/20/12

H.       12/11/11-12/20/11













                                                                                                                                  RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         12/11/12-12/20/12

J.         12/01/12-12/10/12

K.       11/11/12-11/20/12

L.        12/11/11-12/20/11












Source: China Animal Agriculture Association