china’s pulses production and trade in 2008 season

CFNA

China’s Pulses Production China’s Pulses Production and Trade in 2008 Seasonand Trade in 2008 SeasonChina’s Pulses Production China’s Pulses Production and Trade in 2008 Seasonand Trade in 2008 Season

Pulse Sub-Chamber of Pulse Sub-Chamber of CFNACFNA

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China’s Pulses Production in 2008 Season

China’s Pulses Trade in 2008 Season

Forecast and Prospects


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Due to the constant increase of global grain and oil prices in early 2008, the sown areas of Chinese oilseed crops were generally expanded.

In many kidney bean growing regions ， kidney

bean growing area was reduced while the soybean sown area was increased. For example, kidney bean sown area of our northeast region was reduced by 20% from 2007.

China’s Pulses Production in 2008 SeasonChina’s Pulses Production in 2008 Season


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As the climate of the northeast region was favorable in 2008, kidney bean growth there was generally nice

. Though there was a rather serious drought in

northwest and north regions and the harvest area of kidney bean was reduced, total output of Chinese kidney bean in 2008 is more or less the same as last season due to the increase of yield per unit.



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Since the outbreak of the world financial crisis in September of 2008.

The purchasing prices of many agricultural products including kidney bean and other main pulses were considerably reduced from the first half of last year when the prices had kept increasing.



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Therefore, huge quantity of products remained in the hands of farmers and no one wanted to buy for several months ， thus serious harming the interests of pulses farmers and greatly affecting their enthusiasm for growing pulses.



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China’s Pulses Trade in 2008 SeasonChina’s Pulses Trade in 2008 Season

From January to December of 2008, total Chinese pulses export amounts to 1.03 million tons, 90% up over last year, with significant export increase of kidney bean, broad bean, haricot bean and pea.


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We hold that the rapid export increase of major pulses varieties is mainly attributed to world price souring of international agricultural products in the first half of 2008, when importers were forced to increase their stock for reducing business risks, but not due to the change of demand in world market of the season.

China’s Pulses Trade in 2008 SeasonChina’s Pulses Trade in 2008 Season


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Chinese Pulses Export （ January—December, 2008 ）

Varieties Export （ ton ） Compared with Last Year

kidney bean 755224 104%

mung bean 139219 51%

small red bean 56128 31%

broad bean 43725 148%

haricot bean 17964 213%

pea 4138 99%

chickpea 114 -77%

other pulses 20074 32%

Total 1036768 90%


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Owing to the impact of world financial crisis ， Chinese export of agricultural products is seriously blocked ， and our processing enterprises are facing business difficulties, such as operating under capacity and economic returns reduced. Export enterprises are in a difficult trading position with increased risks of getting back credit.



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Due to the economic recession of some countries and their currencies are devalued ， we can not get back the money in time after our pulses export, or can by no means get it back.



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• The financial crisis leads to rapid decline of our kidney bean export in November—December of 2008, with total export volume in these two months reduced by 22.7% ， and the export value reduced by 17.1% from the same period of last year.

• At the same time, a lot of defaults and trading disputes took place.



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Now I would like to give a briefing on our export of some pulse varieties which are attracting attention of world market:

Kidney BeanMung BeanPea



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Kidney Bean

Our kidney bean export in 2008 accounts for 71% of total pulses export of the year. Following table shows that our kidney bean export in 2008 is 750 000 tons, up 27% over last year, with rapid increase of export to South America, Asia and Africa.



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Chinese kidney Bean Export（ January—December in 2008 ）

Regions Export （ ton ） Compared

Asia 20.6 25.1%

Africa 11.4 16.5%

Europe 14.2 9.4%

South America 27.2 51.1%

North America 1.8 -17.5%

Oceania 0.05 3.7%

Total: 75.5 26.5%


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Mung Bean

Our mung bean export in 2008 accounts for 14% of total pulses export of the year. Following table shows that our mung bean export in 2008 is 130 000 tons, up 14% over last year, with some increase of export to Asia and South America ， but some decrease of export to Europe, Oceania and Africa.



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Chinese Mung Bean Export（ January—December in

2008 ）Regions Export （ ton ） Compared

Asia 111716 19%

Africa 39 -21%

Europe 12234 -12%

South America 1084 13%

North America 13923 2%

Oceania 121 -41%

Total: 139219 14%


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Pea

Due to the constant development of domestic vermicelli processing industry and increase of consumption demand, our pea import in recent years is stable as a whole. Our pea import of 2008 accounts for 200 000 tons ， down 20% from last year ， mainly resulting from the increase of world pea price.



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Chinese Pea Import（ January—December in

2008 ）Regions Import （ ton ） Compared

Asia 155 -6%

Africa 29 867%

Europe 1104 -18%

North America 201474 -23%

Oceania 639 -38%

Total: 203402 -23%


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Forecast and ProspectsForecast and Prospects

1) Chinese pulses sown area of 2009 would further decrease

As the production costs of agricultural products in 2008 were increased and sales in this year declined ， it is not only difficult for farmers to increase their income ， but also very harmful to the stability of agricultural production.


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In 2009 the Chinese government will continue to adopt policies favorable for agriculture and protect farmers’ enthusiasm for growing grains, including continuously encouraging soybean and corn production. Therefore Chinese farmers would consider growing more soybean.



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As pulses including kidney bean growing can not enjoy subsidy and farmers’ confidence in external market environment is weakened ， it is expected that sown area of pulses in 2009 would be reduced from last year.



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2) Chinese enterprises would strengthen the control of business risks and product quality

Along with the spreading of world financial crisis ， the uncertain factors of world market are increasing and the business risks of enterprises are becoming greater. Therefore Chinese suppliers would be more cautious in signing contracts and supplying commodities.



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In respect of product quality, Chinese enterprises have been attaching greater importance to creditability and product quality in recent years ， and a lot of enterprises bought and installed colour selectors, thus raising processing technologies to meeting the demand of consumers at different levels even better.



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In recent years the Pulses Sub-chamber of CFNA has held forums and conducted display / consultation activities at various producing regions of China for the industry of sundry grains and pulses as useful supplements to the annual meeting of CICILS/IPCIT.



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The forums have played a positive role for enhancing the level of Chinese pulses industry and expanding channels of exchange and cooperation between Chinese pulses industry and overseas colleagues in respect of pulses varieties , growing ， processing ， trade ， etc.



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On behalf of CFNA ， I would like to state here that we sincerely welcome our friends of pulses industry worldwide to China, and hope you will have the opportunity to participate in the forum and display/consultation activities to be carried out in the middle of August ， 2009 in Ningxia.



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Let’s make efforts for promoting the understanding and cooperation among industry colleagues worldwide and pushing forward the development of global pulses industry.


china’s pulses production and trade in 2008 season

Documents

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