site map
Contact us
Mail to us

China Agricultural Newsletter - May 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 underlines stable agricultural production amid challenges

 BEIJING, May 8 (Xinhua) - The Chinese government on Wednesday urged greater effort to ensure the smooth agricultural production needed to sustain growth in the world's second-largest economy, amid multiple events that have pummelled the farming industry.

China cuts power prices in agricultural sector

 BEIJING, May 22 (Xinhua) - Electricity prices for all businesses in agricultural production and logistics will be cut from June 1, the National Development and Reform Commission (NDRC) announced on Wednesday. Pork and vegetable producers will now enjoy the same electricity prices as other agricultural production businesses, which were already benefiting from preferential costs, the commission said in a statement.

State corn purchase period extended

 The Chinese State Administration of Grain announced on May 7 that it will extend the state corn purchase period for another month this year because of the harvest delay caused by excessive snow and rain since autumn.

Chinese gov't starts pork purchase to stabilize prices

 BEIJING, May 10 (Xinhua) - The Chinese government will soon launch a pork purchase plan to stabilize depressed prices and shore up farmers'confidence, the Ministry of Commerce announced on Friday. The plan is the second of its kind this year, as prices of pork, a staple meat in China, have declined sharply since the end of February due to subdued market demand and oversupply.

Subsidy funds provided to support Chinese poultry industry

 BEIJING, May 13 (Xinhua) - The Chinese central government announced on Monday to grant subsidies of 600 million yuan (96.77 million U.S. dollars)to support the poultry industry, which has suffered from the H7N9 influenza outbreak. The money will support poultry breeders nationwide.

New round of sugar purchasing to start

 China will start the second round of State sugar purchasing with a target of 300,000 metric tons, according to the National Development and Reform Commission, the country's top economic planner, on its website.

Ministry to build distribution center for farm products

 The Ministry of Commerce announced it will build several major distribution centers for the country's agricultural industry over the next three to five years.

Industry and Business Watch

China's farm produce prices drop

 BEIJING, May 13 (Xinhua) - Prices of farm produce in 36 major Chinese cities declined for the third consecutive week, official data showed on Monday. The Ministry of Commerce said in a statement that the average wholesale price for 18 vegetables fell 7.9 percent week on week, with the combined decline of the previous three weeks standing at 13.1 percent.

China expected to expand grain growing area

 China's grain growing area is expected to grow by 0.61 percent from last year, according to a farmers' willingness survey the Ministry of Agriculture released on May 7.

China plants more than 80% spring crops

 As of May 20th, Chinese farmers have planted about 1.107 billion mu (73.8 million hectares) of spring crops, or 82.5% of the total planting area, 2.1 percentage points lower than a year ago, released by the Ministry.

China'to become major grain importer by 2015'

 China, the world's largest food consumer, is expected to become a major grain importer by 2015, head of a global grain trader said in a recent industry forum. Sunny Verghese, CEO of Olam International Ltd, a Singapore-based grain trader, said because of diminishing resources of land and water, China is on the way to become a major importer of corm, wheat and rice by 2015, according to a report by Bloomberg.

Soybean imports expected to reach record high level

 China's soybean imports are expected to reach record highs in the coming year, according to forecasts released on Wednesday by the China National Grain and Oils Information Center.

Corn planting back on schedule

 Spring corn planting in the country's main grain growing area is now back on schedule, after being delayed for almost two weeks due to the impact of last autumn's excessive rain and snow, the Ministry of Agriculture said in a statement on its website.

Brazil plans to sell corn to China

 Brazil plans to sell corn to China, the world's largest food consumer, as officials from the Brazilian Agriculture Minister will be visiting Beijing this week, Xinhua News Agency reported.

China expected to become top importer of rice

 Despite its efforts to boost grain yields for the 10th consecutive year, China - the world's largest rice consumer - is expected to become also the largest rice importer this year, according to a new report.

China's pork price rebounds after government boost

 BEIJING, May 22 (Xinhua) - China's price of pigs has bounced back following the government's subsidized initiatives, the country's top economic planning agency said Wednesday. The average hog price reached 12.79 yuan (2.1 U.S. dollars) per kilo by May 15, marking the third week of a rising trend.

Shuanghui International acquires world's largest pork processor

 NEW YORK, May 29 (Xinhua) - China's Shuanghui International Holdings Limited announced Wednesday that it has entered into a definitive merger agreement with the world's largest pork processor, Smithfield Foods, to create a leading global pork enterprise. The acquisition valued Smithfield at approximately 7.1 billion U.S. dollars, including the assumption of Smithfield's net debt.

Chinese feed supplier to invest RMB 1.26 billion in hog farm

Chinese feed manufacturer, New Hope Group is investing RMB 1.26 billion in a vertically integrated hog farming operation in Chongqing. This is the first time, the company has expanded from feed manufacturing to such downstream links as live hog farming, slaughtering and intensive processing.

Chinese consumers may eat more pork due to recent bird flu outbreaks

 Because of recent bird flu outbreaks in China, consumers switching to pork products will offset the losses in the poultry sector and reduce the net effect on feed demand, according to the US Grains Council. 

China's beef imports hit record high in March

 In March 2013, China's beef imports reached their highest monthly volumes on record, totaling 21,711 tonnes swt, up from only 1,710 tonnes swt during March 2012. 

China rallies poultry industry as bird flu fears wane

 WUHAN, May 20 (Xinhua) - Agricultural officials ate poultry products at an ongoing national animal husbandry expo in order to boost public confidence in the poultry industry, as bird flu concerns are starting to disappear.

China's poultry industry losses reach US$6.5 billion after H7N9 outbreak

 China's poultry sector has lost more than US$6.5 billion five months after the outbreak of the H7N9 virus. According to the Ministry of Agriculture the figure includes tens of millions of dollars in losses reported last month by several of China's largest poultry processing companies as demand for poultry continue to fall.

China plan will make Tyson poultry preferred choice, managers say

 Tyson Foods is looking to China as a key area to grow its revenue after the company reported a decline in earnings for the second quarter. By stepping up its efforts to assure a safe food supply, Tyson officials said they believe their chicken products will set a standard that will win over reluctant Chinese poultry consumers.

Dairy industry moves to rebrand amid crisis

 BEIJING, May 4 (Xinhua) - China's dairy industry is attempting to rebrand itself due to plummeting consumer confidence and competition from foreign brands. Chinese consumers have been purchasing increasing amounts of milk powder from foreign countries due to decreased confidence in domestic brands caused by a 2008 food safety scandal.

Mengniu to launch new organic milk brand in China

 China's Mengniu Dairy plans to launch a new organic milk brand imported from Denmark. The company states that the new brand of milk will be supplied by Swedish-Danish cooperative Arla Foods and will be marketed under Arla Organic Whole Milk brand.

China's cotton reserve is 63% of world's total

 China's cotton reserves were estimated to stand at 5,820 bales this year, accounting for 63 percent of the world's total, the United States Department of Agriculture said in a report.

China's food sector to boom despite slower economic growth: expert

 ZHENGZHOU, May 17 (Xinhua) - China's food industry will continue to experience steady and healthy growth in the coming years against the backdrop of a sluggish economy, according to an industry analyst.

Coca-Cola to invest further in China

 BEIJING, May 9 (Xinhua) - The Coca-Cola Company announced here on Thursday that it will continue to increase investment levels in China. Ahmet Bozer, president of Coca-Cola International, said during an interview that he expects the business to continue to grow for many years to come.


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




Current price


Percentage changes

as compared to last period

(%, May 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 May 2013

Pork (Lean):

                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

A.       05/11/13-

B.       05/01/13-

C.       04/11/13-

D.       05/11/12-













                                                                      RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

E.        05/11/13-

F.        05/01/13-

G.       04/11/13-

H.       05/11/12-













                                                                              RMB1.00 yuan/kg

Average Sales Price (Street markets & Supermarkets)

Var. Percent

I.         05/11/13-

J.         05/01/13-

K.       04/11/13-

L.        05/11/12-












Source: China Animal Agriculture Association