china's grain self-sufficient rate drops to below 90precent

7/29/2019 China's Grain Self-sufficient Rate Drops to Below 90precent

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China's grain self-sufficient rate drops to below 90%

Summary:In 2012, China's grain self-sufficient rate is expected to drop below 90% on the basisof the import volume in the first eleventh months.

Tag: No. 1 central document, government purchasing, corn seed processing, grain self-sufficient

rate, corn products, bio-pesticide

This year, China's grain yield is expected to hit a record high and to achieve the ninth consecutive

annual increase for the first time since half a century ago. According to the National Bureau of

Statistics of China, the domestic grain yield is predicted to increase to 589.57 million tonnes in

2012, up 3.2% over the previous year. Meanwhile, the import of grain also increases accordingly.

In the first eleventh months of 2012, the import volume of grain in China has hit 65.89 million

tonnes, accounting for around 11% of the nations total grain yield according to official statistics,

which means that Chinas grain self-sufficient rate has dropped below 90%, according to CCM s

December issue ofAgriChina Investor.

For years, China has attached importance to achieving and maintaining high grain self-sufficient

rate. On 2 July, 2008, the Medium and Long Term Plan for National Grain Security, which

planned to stabilize China's grain self-sufficient rate above 95%, was passed by the State

Council. At the beginning of 2012, the Ministry of Agriculture also indicated that China should

maintain the goal of grain self-sufficiency.

Li Guoxiang, a researcher of the Rural Development Institute of the Chinese Academy of Social

Sciences, said that Chinas grain self-sufficient rate has already decreased below the line of 95%,

a target figure set by the government. Coupled with import volume in December, China's grainself-sufficient rate is predicted to surely drop below 90% in 2012. However, the large import

volume of grain is to stabilize the price of agricultural produces, which will not last for a long time,

and China's grain supply is still very adequate.

China is already the world's largest importer of soybean. With the decreasing planting area of

soybean, the import volume of soybean is estimated to increase to 57.5 million tonnes in 2012

from 52.6 million tonnes in 2011, according to the National Grain and Oil Information Center.

Besides, China has become a net importer of wheat, rice and corn since 2011. Experts believe

that the current increasing market share of imported grain in China will make China's grain

encounter some important changes and challenges.

First, since the area of China's arable land has already decreased to 120 million ha. (1,800 million

mu), Chinas grain is difficult to maintain complete self-sufficiency. With the acceleration of

urbanization, the arable land is inevitably decreasing, and enlarging grain import volume will also

be inevitable.
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Second, since the grain import is inevitable, China should pay close attention to the trends and

changes in the overseas markets. In the future, China should actively expand agricultural

investment in overseas markets, including renting overseas land to farming, taking shares of

foreign agricultural companies and agricultural trading companies, in a bid to increase the

influence in the field of grain production and trading.

Third, in domestic market, it is urgent for China's agricultural industry to upgrade and China

should introduce more investments into the agricultural industry. In addition, China should adjust

macroeconomic policies and industrial policies to better serve grain production. For years, China

has issued many preferential policies on supporting agricultural industry, which should continue in

the future.

Source:AgriChina Investor 1212

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1212:

No. 1 central document of 2013 again to focus on agricultural issues

Governments import tariff adjustment for specialty infant formula

2012 China's agricultural machinery purchasing subsidy soars by 25.6% YoY

Government purchasing: a double-edged sword

Legend Holdings invests in kiwi business

Kenfeng Seed cooperates with PETKUS in corn seed processing

Ausnutria's ongoing expansion strategy overseas

Chuying Agro-Pastoral's ecological pig project to start mass production in 2013

China's grain self-sufficient rate drops to below 90%

Substitution of wheat for corn declines in Q4 over Q3 2012

2012 Annual review of corn products industry

Opportunities and challenges co-exist in China's bio-pesticide industry

China's first state-level agricultural industry fund founded

Jan.-Nov. 2012 Chinas pesticide technical output hit 3.2 million tonnes

North Grain Agriculture to establish laying hens demonstration base with USD186 million

2012 China's newly added corn harvesters hits 52,600 aided by f inancial subsidy
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Nestl completes acquisition of Pfizer's infant nutrition of Wyeth

CAAS signs strategic cooperation framework agreement with COFCO

CATAS signs cooperation framework agreement on agricultural technology

Number of Xinjiang's imported cotton pickers soars greatly in 2012

AgriChina Investor, periodically published on 31th every month, offers timely update and close

follow up of agriculture investment in China, analyzing market data and trends, as well as related

policies. Major columns include investment environment, investment dynamics, market watcher,

market review etc.

If you are interested inAgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at [email protected].

About CCM

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more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,

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china's grain self-sufficient rate drops to below 90precent

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