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China Agricultural Newsletter - April 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, 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 allocates fund to support spring farming

The Ministry of Finance (MOF) said Friday it has allocated 7.9 billion yuan (1.25 billion U.S. dollars) to support spring ploughing, which is pivotal to the country's grain harvest. The money will be used to fight drought, prevent plant pests, cultivate new seeds and subsidize farmers, the MOF said in a statement.

China driven to build up wheat stockpiles during April 2013

In almost a decade, China was driven to purchase wheat imports during April 2013, in order to increase state reserve. The development was a result of deterioration in the country’s massive but ageing state stockpiles, analyst said.

China may release control plan to stem pig industry losses

China's government is reported to be monitoring national pork production with the possibility of introducing a control plan to prevent deep financial losses for pig producers. This follows a declining trend in live pig prices in several major cities since the Chinese New Year.

China increases pork reserves to stabilize prices

In order to stabilize prices, which have slumped for three months, the Chinese government has started to purchase frozen pork and add it to reserve.

Chinese government urged to support poultry farms

In order to prevent them from being financially devastated by the H7N9 bird flu epidemic, a top agricultural official has urged the government to support poultry farms that are up to quarantine standards.

Industry and Business Watch

China's farm produce prices rebound after consecutive drops

BEIJING, April 16 (Xinhua) - Prices of edible farm produce in 36 major Chinese cities rebounded after declining for seven consecutive weeks, new official data show. The Ministry of Commerce said Tuesday in an online statement that the average wholesale prices for 18 vegetables on the monitored list surged 7.1 percent week on week.

China's 2012-13 soy imports may drop

Soy imports in the year ending September 30 are expected at 59 million tonnes, compared with actual imports of 59.24 million tonnes in 2011-12, the state-backed China National Grain & Oils Information Center said in a report.

China's corn production may be hit by cold, wet weather

Due to excessive snow and rain in winter, China's major corn producing areas are suffering from colder-than-usual spring weather and waterlogging, delaying sowing and increasing the costs of production.

China's strong start to US corn imports may slow down

As long as China's domestic harvest lives up to early promise, and the country proves willing to delve into its huge inventories, the strong start to 2013-14 for Chinese imports of US corn may drop.

Corn overtakes rice as leading foodstuff

Corn overtook rice as the largest food product in China for the first time last year, according to a Chinese Academy for Social Sciences report released on Wednesday. Domestic corn production grew 8 percent to 208 million metric tons, while rice output edged up just 1.6 percent to 204 million tons.

Super rice project could be finished in 3 years

New super rice strains with an expected yield of 15 tons per hectare could be developed in three years, Chinese agricultural scientist Yuan Longping said on Friday.

Super rice keeps China's supply self-sufficient

New super rice strains with an expected yield of 14.9 metric tons per hectare will help China maintain its largely self-sufficient supply of rice, a staple food for more than 60 percent of its population, over the next few decades, experts said.

China purchases about one million tonnes of US wheat

China has acquired almost one million tonnes of wheat from the US as prices decline 30% from a four-year high reached in July 2012. Wheat jumped as much as 1.4%.

China poultry sector badly hit by bird flu outbreak

China's poultry sector is severely impacted by a deadly bird flu outbreak, with reported drop in sales, said an industry group. Authorities say they are unclear how the H7N9 avian influenza – which has killed seven people and sickened 24 – is spreading, though it is believed the infection is passing from birds to humans.

China hog producers may incur losses in 2013

After two consecutive years of prosperity, several Chinese hog producers are expecting a loss in 2013, as hog margins have slowly eroded as a result of higher feed prices in the past year.

China's beef imports from Australia reach 28,600 tonnes

In the first quarter of 2013, China imported 28,632 tonnes of beef from Australia, overtaking South Korea to be the third- largest beef exporter of Australia after Japan and the US.

Chinese feed manufacturer's first pig feed plant is operational

China's quest to become self-sufficient in pork production is on track as a new pig feed plant from Gaoming Tongwei Feed Co. in Foshan City is now operational.

China's poultry feed demand may decline 20% in Q2 2013

After an outbreak of bird flu, feed demand from China's poultry industry may slump 20% in the second quarter from a year earlier. This is according to research from Shanghai JC Intelligence Co.

China's Dairy Symposium tackles dairy challenges through innovation

More than 240 global dairy industry leaders attended this year's China Dairy Symposium, hosted by Alltech, where they discussed how the Chinese dairy market’s main challenge for the next 10 years will come from an increasing demand for milk, which will continue to outpace domestic supply.

US state signs agreements with Shanghai Dairy in China

The US state of Wisconsin has entered into three letters of intent with the Shanghai Dairy Group to establish future business agreements. This was announced by Wisconsin Governor Scott Walker’s office.

Muyang opens new feed machinery manufacturing base

Muyang Group, an integrated solution provider of plants, equipment and services for feed manufacturers, officiates the opening of its new 33.3-hectare feed machinery manufacturing base on April 18.

NZ, China agree to share agriculture knowledge

China and New Zealand will expand their sharing of agriculture expertise and knowledge under a new bilateral agreement signed Wednesday. New Zealand Minister for Primary Industries Nathan Guy and visiting Chinese Minister of Agriculture Han Changfu signed the Strategic Plan on Promoting Agricultural Cooperation in Wellington.

Wal-Mart plans to spend

RETAIL giant Wal-Mart plans to spend nearly 500 million yuan (US$79.6 million) to renovate 50 stores on China's mainland and to open 30 new stores this year after announcing that three outlets will be closed to streamline its network last month.

Brewer plans to buy assets in China

ANHEUSER-BUSCH InBev NV, the world's biggest beermaker, plans acquisitions in China as beer drinking rises in its third-largest market.


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

Current price (RMB)
Percentage changes as compared to last period
(%, April 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 March 2013


Pork (Lean):

                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.      04/11/13-04/20/13

B.      04/01/13-04/10/13

C.      03/11/13-03/20/13

D.      04/11/12-04/20/12













                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.       04/11/13-04/20/13

F.       04/01/13-04/10/13

G.      03/11/13-03/20/13

H.      04/11/12-04/20/12













                                                                              RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.        04/11/13-04/20/13

J.        04/01/13-04/10/13

K.      03/11/13-03/20/13

L.       04/11/12-04/20/12












Source: China Animal Agriculture Association