Purchasing Soybean in Northeast China Becomes Difficult

The November issue of China Agriculture Investment Bimonthly Report by CCM International has come out recently. The top news is about soybean purchase problem. It is hard for the soybean processing enterprises to purchase soybean in Northeast China due to the decreasing local planting area.

The planting area of soybean has been reduced year by year, down to 3,667,000 ha. in 2009 from 4,246,000 ha. in 2005. The situation is the same in Northeast China, especially in Heilongjiang Province, which is a key soybean production area in China. The soybean planting area in Heilongjiang Province has been continuously decreasing these years, thus the soybean supply in Northeast China has begun to slip.

As a result, the processing enterprises of soybean are facing many difficulties in purchasing their raw material - soybean and are with the risk of losing market share. Since soybean planting in China doesn’t have much advantage, most farmers choose to plant other crops with higher benefits. If this trend keeps going on, the gap between supply and demand of soybean in Northeast will become more and more apparent in the future.

To solve this crisis, the government should take corresponding measures, such as policies on soybean purchase and temporary store, the stabilization of the price, offering tax preference to soybean enterprises, etc.

More details about soybean purchasing news, please check CCM International’s China Agriculture Investment Bimonthly Report.

Headline News of China Agriculture Investment Bimonthly Report 1111:

-China will become the largest import country of agricultural produces in five to ten years, owing to the development of economy and the unceasing improvement of people's living level in China.

-The pilot of agricultural produces has attracted a large sum of social investment and promoted the income growth of farmers.

-The processing enterprises of soybean in Northeast China have been faced with crisis in soybean purchase owing to the reducing local planting area of soybean.

-China's nitrogen fertilizer industry is to see production structure changes, due to the intense overcapacity and the ever-changing raw material supply.

-Agricultural material logistics is to enjoy a faster development, aided by the policy support and the fast expanding production capacity.

-Legend Holdings views agriculture as a new growth point.

-ZARD continues to expand its seed industry after its stock trade in Shanghai Stock Exchange resumed on Oct. 19, 2011.

-Chinese pesticide industry meets white-hot capital operation, and pesticide enterprises are hurrying to seek ways of survival and development.

-Sinochem Corporation is planning to launch its domestic initial public offering (IPO) recently.

-Tingyi-Asahi Beverage will establish strategic alliance with PepsiCo in the beverage business in China.

-The New Administrative Regulations on Feed and Feed Additive will be implemented on May 1, 2012 in China.

-The development of China's liquor industry will enter into a golden age in the next one or two years.

-China's dairy enterprises are now positively raising funds in this key period for their future development.

……

If you are interested in November issue of China Agriculture Investment Bimonthly Report, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_875.html

Northeast Production Area of Soybean Facing Crisis in Raw Material Purchase

The processing enterprises of soybean in Northeast China have been faced with crisis in soybean purchase owing to the reducing local planting area of soybean, according to CCM’s November issue of China Agriculture Investment Bimonthly Report.

According to the Soybean Association of Heilongjiang, at present, the processing enterprises of soybean have faced many difficulties in purchasing their raw material - soybean. The processing enterprises of soybean can not get soybean with low price while dare not to purchase with high price. Recently, in Heilongjiang Province, only a few processing enterprises of grease are purchasing soybean as raw material and more than 80% of the processing enterprises of grease have suspended their productions. The planting area of soybean has been continuously reducing in Heilongjiang Province, thus the soybean supply in Northeast China has begun to slip.

The processing enterprises of soybean have faced with difficulties in raw material purchasing and are with the risk of losing market share. At present, domestic soybean planting doesn't have any advantages, thus most of the farmers choose to plant other crops with higher benefits. If this trend keeps going on, the gap between supply and demand of soybean in Northeast will appear in the future. Recently, domestic supply of soybean has been in short, owing to the sharply decreased planting area and output of soybean. The planting area of soybean has been reduced year by year, decreasing to 3,667,000 ha. in 2009 from 4,246,000 ha. in 2005.

At the same time, many processing enterprises of soybean have suspended productions because of the difficulties of purchasing raw material and the poor performance. Take the largest enterprise of soybean oil in Hailun City, Heilongjiang for example, its production has been dependent on the national financial subsidies for many years, and this year the enterprise even suspends production. At present, the operation rates of soybean oil enterprises are low, and only half of the enterprises are producing.

The short supply of soybean has also brought influence to its consumer markets such as the soybean oil market and the soybean meal market. In the past, the northeast region marketed all its own soybean; but now, soybean oil and soybean meal produced in Huaihai Region are sold to the northeast region, which weakens the advantages that the northeast region once had in soybean production.

To solve this crisis, the government should take corresponding measures, such as policies on soybean purchase and temporary store; the stabilization of the price; offering tax preference to soybean enterprises, etc.

Source: China Agriculture Investment Bimonthly Report

Content of China Agriculture Investment Bimonthly Report:

China to become top import country of agricultural produces

Pilot of modern agricultural produces circulation achieves fruitful success in China

Northeast production area of soybean facing crisis in raw material purchase

Price update of agricultural produces

Nitrogen fertilizer industry to change production structure

Agricultural material logistics to see faster development in China

Legend Holdings views agriculture as new growth point

Price update of main fertilizers

ZARD to purchase Guangxi Green Agricultural 51% share

Chinese pesticide industry meets white-hot capital operation

Sinochem Corporation to launch IPO

Price review of key pesticides and materials in Nov. 2011

Tingyi-Asahi Beverage to establish strategic alliance with PepsiCo

New Administrative Regulations on Feed and Feed Additive to implement in China

Liquor industry to enter into a golden age in China

China's dairy enterprises actively raising funds in key development period

Price update of food and feed

……

China Agriculture Investment Bimonthly Report, which is a bi-monthly newsletter published by CCM International Limited, offers timely update and close follow up of Chinese agricultural industry, analyzing market data and trends, as well as related policies. Major columns include policy and legislation, industry dynamic, company dynamic and price update.

If you are interested in November issue of China Agriculture Investment Bimonthly Report, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_857.html