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China Agricultural Newsletter - February 2013

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, IEDAs 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 IEDAs Beijing Office, please contact Mr. Joseph Rude at

Laws, Regulations and Policies

China issues its first policy document for 2013

BEIJING, Jan. 31 (Xinhua) - The Chinese authorities Thursday issued its first policy document for 2013, highlighting the significance of developing modern agriculture to strengthen the vitality of rural areas. This is the 10th consecutive year in which the document focused on rural issues.

China steps up rural land registrations

China will continue to carry out registrations on the ownership and management rights of rural land to facilitate land transfers, the country's first policy document for 2013 says.

China to increase spending to achieve grain self-efficiency

China will increase farm subsidy spending to improve the country’s grain self-efficiency, among other measures to modernize farming and tackle a growing divide between urban and rural incomes.

China to crack down on counterfeit agricultural materials

A crackdown will be launched to prevent the production and sale of counterfeit seeds, pesticide, fertilizer and other agricultural production materials, the Ministry of Agriculture (MOA) said Monday.

China to improve food contaminant monitoring

China is planning to equip at least half of the country’s country-level administrative areas to monitor various contaminants and harmful ingredients in food by the end of 2013.

Online food sales added to safety watch list

Food purchased online will be monitored with special attention given to milk powder and infant products, Beijing Times reported on Feb 24.

China wants third party verification of US pork imports

From March 1, China wants a third party to verify that US pork imports are free from ractopamine, a spokesman for the US Meat Export Federation spokesman said.

China to introduce tougher dairy import, export regulations

Plans to introduce tougher regulations on the import and export of dairy products were announced by China’s food safety watchdog, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

Regulation to stop production of 'gutter oil'

Shanghai's new regulation to prevent the use and collection of restaurants' waste oil takes effect on Friday, and businesses that break the law could face a fine of up to 100,000 yuan (US$16,000).

China extends anti-dumping duties on EU potato starch

China will extend anti-dumping duties on potato starch imported from the EU for another five years starting from Wednesday. The duty rates will range from 12.6 percent to 56.7 percent, the Ministry of Commerce (MOC) said Tuesday in an online statement.

Agricultural processing industry to get more support

The agricultural processing industry will benefit from more policy support, including fiscal support, as a vital step in the country's industrialization and urbanization process, the Shanghai Securities Journal reported on Friday.

Industry and Business Watch

MOC monitors farm produce price decline

BEIJING, Feb. 26 (Xinhua) - Farm produce prices in China's 36 major cities saw a general decline last week following the Spring Festival holiday, according to a Ministry of Commerce (MOC) survey on Tuesday.

China to secure 1.67 billion mu of grain land in 2013

China plans to secure over 1.67 billion mu (111.27 million hectares) of land for grain farming this year, a senior official said Sunday. Minister of Agriculture Han Changfu said at a work conference that the country will put forth every effort to ensure that the grain-growing acreage for the spring planting season stays at over 920 million mu.

Heavy metals contaminate Chinese grains

Excessive levels of heavy metals have contaminated at least 36,000 hectares of China’s farmland, resulting in 12 million tonnes of contaminated harvest which is the equivalent of a CNY20 billion (US$3.2 billion) economic loss every year.

China buys 400,000 tonnes of wheat from Australia

China has acquired about 400,000 tonnes of wheat from Australia. It has also bought 100,000 tonnes of Canadian wheat in recent days, European traders said.

Argentina, China in talks on corn exports differences

In order to resolve differences on the issue of genetically modified (GM) corn strains found in recent Argentina’s corn exports, Argentina and China are in talks over the tables.

China now top market for US hog

China is now the top market for US breeder hogs, whose genetic advantages improve productivity on Chinese farms. Through November, China was the top destination for exports of live US hogs in 2012 in terms of value – US$16.28 million for 12,138 animals, said Joe Schuele, a spokesman for the US Meat Export Federation, an industry trade group.

China's 2012 beef imports rise 205% on-year

China’s 2012 beef imports skyrocketed to 61,386 tonnes swt, 205% above 2011 and 366% higher than the five-year average, with November and December 2012 marking the two highest monthly beef import volumes on record.

Canada beef expands market in China

After continued efforts by the Canadian Government to expand commercial access in China, the recent move by China to allow four additional Canadian beef facilities to export to the country has come.

Chinese study reveals threat of antibiotics use in livestock

A new study from China shows that much higher levels of antibiotic-resistance genes were found at pig farms where antibiotics are used to fatten farm animals, posing a steep threat to global health.

Palm imports climbing as quarantine concerns ease

Palm oil imports by China, the biggest cooking oil consumer, are predicted to jump 14 percent in February on optimism stricter quarantine inspections won't hurt trade.

Companies urged to help boost agriculture

China will encourage industrial and commercial enterprises to be active in the agricultural sector to accelerate its development, senior officials said on Friday.

Chinese dairy firm chooses site in New Zealand for formula plant

WELLINGTON, Feb. 5 (Xinhua) - Chinese dairy giant Yashili announced Tuesday it has found a site to build a dairy plant in New Zealand's North Island as part of an investment worth 210 million NZ dollars (176,69 million U.S. dollars) to make infant formula for its home market.

China's BeingMate to invest US$27 million in Ireland

China’s BeingMate will invest EUR20 million (US$27 million) to build BeingMate (Ireland) Company Limited, to operate business covering the research and development, production and sale of infant formula in Ireland.

Sanquan Foods to acquire Heinz's four Longfong food firms

Zhengzhou Sanquan Foods Co Ltd, one of China's largest producers of fast-frozen food, said it has reached an exclusive acquisition framework agreement with H.J. Heinz Co to acquire the four Longfong food companies owned directly or indirectly by Heinz.

KFC China announces measures to regain trust

KFC China, a division of Yum Brands Inc, announced new quality-assurance measures on Monday in a bid to restore brand confidence. The moves include eliminating more than 1,000 unqualified chicken houses; improving control on poultry suppliers; and implementing timely reporting and communicating with the public, the company said.


Average food prices in 50 cities February 11-20, 2013



Current price (RMB)

Percentage changes as compared to last period

(%, March 1-10, 2013)


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 February 2013

Pork (Lean):

                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       02/11/13-02/20/13

B.       02/01/13-02/10/13

C.       01/11/13-01/20/13

D.       02/11/12-02/20/12













                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        02/11/13-02/20/13

F.        02/01/13-02/10/13

G.       01/11/13-01/20/13

H.       02/11/12-02/20/12













                                                                              RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         02/11/13-02/20/13

J.         02/01/13-02/10/13

K.       01/11/13-01/20/13

L.        02/11/12-02/20/12












Source: China Animal Agriculture Association