China's corn output to reach 215 million tonnes in 2013/2014

According to forecasts from the National Grain & Oils Information Center and the China Food Industry Association, China's corn output may reach 215 million tonnes in 2013/2014, 7 million tonnes more than in 2012/2013. The increase in corn output may result in a decrease in the price of corn. According to CCM's data, the output and the annual market price of corn in China maintained an uptrend during 2009/2010-2012/2013.

Affected by the corn harvest in Oct. 2013, the pressure from imported corn and the depressed corn deep-processing industry, the domestic market is facing an oversupply of corn. 

According to China Customs' data, the average corn import price was USD306.3/t in the first eight months of 2013 in China. It was much lower than China's average market price of corn which was USD380.5/t. During this period, China imported more than 1.6 million tonnes of corn, which was already a relatively large number.

As for the corn deep-processing industry, it saw a downtrend. Xu Jiawan, the manager of the corn purchasing department of Cargill Biochemical (Songyuan) Co., Ltd. (Songyuan Cargill), said that the overall operating rate of the corn deep-processing industry was less than 50%. For instance, the average operating rate of domestic corn starch enterprises was presently as low as about 46%, owing to the oversupply and the weak demand for corn starch from downstream industries. Similarly, the average operating rate of alcohol enterprises is also relatively low.

Liu Xiaoran, deputy Secretary-General of the corn branch of the China Food Industry Association, estimates that domestic corn consumption will be just 197.5 million tonnes in 2013/2014, which is much less than the output of corn.

Due to the oversupply of corn, the market price of corn harvested in autumn may decrease and it may be even lower than the government's corn purchasing price for temporary reserves. Moreover, the overall quality of corn is not as high as before, due to the severe weather this year, which may also suppress the market price of corn.  

Recently, the purchasing prices of corn set by some leading corn deep-processing enterprises in Northeast China have decreased compared with those in 2012. For instance, on Sept. 25, 2013, Changchun Jincheng Corn Development Co., Ltd. (Changchun Jincheng), a subsidiary of Changchun Dacheng Industrial Group Co., Ltd., set its corn purchasing price at USD341.5/t (RMB2,100/t), USD9.8/t (RMB60/t) less than that in 2012. On Sept. 28, Songyuan Cargill set its corn purchasing price as the same as that of Changchun Jincheng, but the price was USD16.3/t (RMB100/t) less than that of last year. These companies' purchasing prices are all below the corn purchasing price for the temporary corn reserves set by the National Development and Reform Commission of China (NDRC).

As early as July 3, 2013, the NDRC announced that China would increase the purchasing price for temporary corn reserves in 2013/2014. The purchasing prices of corn (third-grade of the national standards) will be USD366.3/t (RMB2,260/t), USD366.3/t (RMB2,260/t), USD363.0/t (RMB2,240/t) and USD359.8/t (RMB2,220/t) in Inner Mongolia, Liaoning, Jilin and Heilongjiang (the main corn planting areas in China) respectively, which are all USD19.4/t (RMB120/t) higher than the prices of 2012. (For more details, please refer to Corn Products China News 1307: China increases temporary reserve price of corn in 2013/2014).

Source: Corn Products China News issued by CCM in October.

Table of Contents of Corn Products China News 1310:

China's corn output to reach 215 million tonnes in 2013/2014

Global Sweeteners'net loss increases to USD14.2 million, H1 2013

China's market price of VD3 rebounds sharply, Sept. 2013

China's lowest purchasing price of wheat to rise by RMB120/t in 2014

Low operating rate of soybean crushers relates to tight supply of soybean

Price update of corn products, Oct. 2013

China Agri-Industries' performance of biochemical and bio-fuels segment maintains stable, H1 2013

China's xylitol export value up but price down, Jan.-Aug. 2013

Xiwang Foodstuffs performs well in H1 2013

International and domestic factors together impact China's sucrose price in Q4 2013

Chinese corn products Imp. & Exp., Aug. 2013

Sixth International Corn Industry Conference holds in Nanchang on Sept.

COFCO Corporation to build Guangdong Grain & Oil Industrial Park in Dongguan

Zhaoqing Coruscate's 600,000t/a starch syrup project launches in Chuzhou

Sales revenue from Star Lake Bioscience's feed additives declines by 32.62% YoY, H1 2013

Global Bio-chem suffers gross loss of USD27.63 million, H1 2013

Corn Products China News, a monthly publication issued by CCM on 20^th, features “Supply and Demand”, “Import and Export Analysis”, “Price Update”, “Market & Company Dynamics”, “Policy”, “Corn Supply” and other more information researched and reported by CCM’s professional journalists. It is a reliable intermediate for you to know more about the corn industry in China even in the globe.

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, and Consultancy Service. 

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

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HFCS and corn starch expected to get listed as futures in China

State Development & Investment Corporation (SDIC), a state-owned investment holding company directly under the central government, announced on its official website that its holding company named SDIC CGOG Futures Co., Ltd, became a member of China Starch Industry Association (CSIA) in July 2013, in order to assist Dalian Commodity Exchange (DCE), one of the four futures exchanges in China, to promote the listing of high fructose corn syrup (HFCS) and corn starch as futures. SDIC expressed that HFCS and corn starch were the two key varieties under DCE's current research to become futures. If HFCS and corn starch can become futures, it will bring more opportunities than challenges to domestic producers of these two commodities.

HFCS and corn starch becoming futures will have a positive effect on setting the benchmark prices of these two products in China. At present, China has no authoritative benchmark prices of HFCS and corn starch, which means that prices of these two products vary with producers. Because of the intense competition in these two industries, most domestic HFCS and corn starch producers always apply the "low-price strategy", even some producers continuously decline their products' prices, weakening the bargaining power of domestic HFCS and corn starch producers. Under this situation, the market price of HFCS and corn starch in China are irregular at present. The futures price of HFCS and corn starch can be used as their authoritative benchmark prices, which is believed to strengthen the bargaining power of domestic HFCS and corn starch producers.

Besides, according to Zhou Bo, a member of DCE, HFCS and corn starch becoming futures will be beneficial to domestic HFCS and corn starch producers and domestic downstream enterprises. The hedging function of futures can ensure both HFCS and corn starch producers and domestic downstream companies lower risks and more profits. Domestic producers can adjust their production plans and sales strategies according to the futures prices, and downstream companies can adjust their purchase volumes at the same time.

For domestic HFCS and corn starch producers, if they want to take part in futures exchange, they need to acquire relevant qualification after the listing of HFCS and corn starch are approved. It is worth mentioning that the raw material supply and quality assurance period jointly determine that the range of production and sales is not large. In addition, most HFCS producers in China follow the "factory direct sales" method. As a result, to acquire the futures checking and acceptance qualification will be a priority for domestic HFCS producers to participate in futures trading.

Moreover, the companies which want to take part in the futures trading of HFCS and corn starch in the future will need relevant futures researcher. An excellent futures researcher will be helpful to improve their anti-risk capability.

If HFCS and corn starch can become futures, it is believed that these two industries will further develop. For one thing, to be futures, more relevant research organizations will bring more information about not only the domestic market but also overseas market, which may affect the futures prices. At present the channel through which producers gather the information mentioned above are confined to a few organizations only, but the situation will be changed after the futures are approved. Also becoming futures will improve the concentration ration of the industries. It is obvious that large producers will more easily acquire relevant qualifications to enter the futures market than the smaller ones, thus, the smaller ones will face more risks than the larger ones. Finally, more small producers will withdraw from the market or be acquired by large ones, and the concentration ration of the industries will increase.

Source: Corn Products China News issued by CCM in September

Table of Contents of Corn Products China News 1309:

China's corn import may incease to 20-30 million tonnes

Chinese corn products Imp. & Exp. in July 2013

China's citric acid export volume up but value down, Jan.-July 2013

Price update of corn products in Sept. 2013

Ex-works price of DDGS surges in Aug. 2013

Fufeng Group performs well in H1 2013

Meihua Group's net profit down 22% YoY in H1 2013

Sales revenue of Baolingbao declines by 20.88% in H1 2013

COFCO Biochemical's net profit decreases by 48.27% in H1 2013

Longlive Bio-technology performs in expectation in H1 2013

HFCS and corn starch expected to get listed as futures in China

Feed industry undergoes a downtrend in H1 2013

Corn Products China News, a monthly publication issued by CCM on 20^th, features “Supply and Demand”, “Import and Export Analysis”, “Price Update”, “Market & Company Dynamics”, “Policy”, “Corn Supply” and other more information researched and reported by CCM’s professional journalists. It is a reliable intermediate for you to know more about the corn industry in China even in the globe.

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, and Consultancy Service. 

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

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

Corn seed market still enveloped in oversupply nightmare in 2013

In 2013 the domestic corn seed market is experiencing serious oversupply, falling prices, uneven quality of varieties and poor performance by seed companies, according to Seed China News issued by CCM in July 2013.

Oversupply continues

The oversupply of corn seeds in 2013 is even worse than that of 2012. According to National Agro-Tech Extension and Service Center (NATESC), the total supply of corn seeds in 2013 has reached 2.12 million tonnes while the demand is only about 1.20 million tonnes, creating 920,000 tonnes of excess inventory. In comparison, in 2012 the supply of corn seed was about 1.76 million tonnes and for 1.12 million tonnes of demand, creating excess inventory of 640,000 tonnes. The increasing oversupply is a result of output growing more quickly than demand. Actually, the oversupply would be more serious if taking into account private and illegal seed production.

"Both old and new products are experiencing excess inventory," says Tong Pingya, a well-known research expert in the seed industry. "Some new corn varieties, such as Jingke968, Zhongdan909 and Weike702, have excess inventory of more than 40%, or even as high as 60% for individual ones, not to mention the old varieties like Zhengdan958 and Xianyu335." Because of this, seed production bases in Northwest China have cut production this year, especially for old varieties.

Prices decline further

Prices decline further High inventories are pushing seed prices down in 2013 and seed companies have been waging a price war in the seed market, while farmers took a wait-and-see attitude. For example, the retail price of Zhengdan958 seeds for monoseeding marked by seed producers (Beijing Doneed Seed Co., Ltd., Henan Goldoctor Seeds Co., Ltd., Henan Qiule Seed Industry Science and Technology Co., Ltd., etc.) is generally USD6.47 (RMB40) or USD7.28 (RMB45) per bag (around 5,000 grains), but the selling price decreased to below USD4.85 (RMB30) per bag in some regional markets early this year.

The deluge of infringing seeds (counterfeit seeds, seeds that are bred without authorization, ect.) has further depressed the prices. For instance, the selling of the bulk seeds of Zhengdan958 and Xianyu355 is quite prevalent in some regional markets, and Zhengdan958 and Xianyu355 bulk seed prices sell for USD2.59/kg (RMB16/kg) or lower. However, it is illegal to sell seeds in bulk in China without packaging (except tubers and seedlings that are not suitable for packaging), in accordance with China's Seed Law.

Uneven quality of varieties

Although a number of new corn varieties win the provincial or national approval each year, few can really surpass the currently leading varieties like Zhengdan958, Xianyu335 and Xundan20. It is reported that there are over 1,000 corn varieties in the domestic corn seed market in 2013, most of which are just spurious products imitating the leading varieties. Actually, the planting of most other corn varieties is small and scattered, usually with respective planting area below 30,000 ha., compared with 2 million ha. of planting area of each leading variety. Actually, many of those small varieties without prominent advantages are not competitive in the market and will be easily eliminated in a short time.

Companies face underperformance

Faced with oversupply, most corn seed companies are not optimistic about their performance in 2013. For those lacking promising varieties, the circumstance is even worse. It is the same with those large seed companies. For instance, Beijing Doneed Seed Co., Ltd. (Beijing Doneed), the core subsidiary of listed Wanxiang Doneed Co., Ltd., had declining performance in H1 2013 following a lackluster in 2012. The company continues to rely heavily on an old seed variety, Zhengdan958, which has further hurt performance, coupled with the deluge of infringing seeds. Gansu Dunhuang Seed Co., Ltd. (Gansu Dunhuang) will also fare poorly due mainly to shrinking sales of Xianyu335, the largest contributor to company profits.

Some companies in possession of promising varieties may still fare well. Shandong Denghai Seeds Co., Ltd. (Shandong Denghai), an R&D-focused corn seed company, has been promoting proprietary varieties such as Denghai605 and Denghai618, gradually reducing its reliance on Xianyu335. Shandong Denghai forecasts a 80%~130% YoY growth in net profits in H1 2013.

With increasing oversupply and high inventories, a number of producers have cut production, especially those less competitive companies. Some companies are also trying to clear inventory by selling at cut-rate prices. In this case the pressure from high inventory would be somewhat alleviated next year.

Table Contents of Seed China News 1307:

Vegetable seed companies in need of policy support

Mulch film causes increasing troubles to China's agriculture

Corn seed market still enveloped in oversupply nightmare in 2013

S&W Seed to conduct dormant alfalfa variety hay trials in China

Hybrid rice seeds trapped in excess supply

Longping High-tech to take full control of three key subsidiaries

Hefei Fengle resumes its real estate business

Wheat yields decrease sharply in some parts of Henan

GM rice taste tests held in China

Highland Barley 2000 expected to boost Tibet's grain output

Xi'an Jinpeng vigorously promoting Jinpeng8, an anti-TYLCV pink tomato variety

China's soybean import in H1 2013 sees 5% YoY decline

Winall Hi-tech forecasts a performance loss in H1 2013

Seed China News, a monthly publication issued by CCM at the end of every month, mainly covers a diversity of topics, including market dynamic, company dynamic, crops, seed market, etc. With the latest news in seed industry and in-depth analysis on government direction and market competition, Seed China News can provide you with valid information which would help you make rational decisions in investment, production, marketing, etc.

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, and Consultancy Service. 

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

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Email: econtact@cnchemicals.com

Multinational seed companies achieve localization in China

The Chinese version of this paper has been written by Tong Pingya, then translated and edited into English by CCM and issued in CCM’s latest monthly newsletter, Seed China News 1304. Tong Pingya, Researcher in the Chinese Academy of Agricultural Sciences, has been involved in the scientific study on corn and agricultural development strategy for a long time. With his great experience, Mr. Tong acts as a senior consultant for both government departments and non-government organizations.

With its huge market, China is the second largest consumer of crop seeds, attracting great attention from multinational seed companies. The Chinese seed market has a great potential for commercial interests. Indeed, for multinational seed companies, China is not only a large consumer market, but also an unmatched production base for crop seeds. Entering the Chinese market and developing along with the development of the Chinese seed industry becomes an important strategy for multinational seed companies to achieve a global victory in the intense competition of seed market.

Considering the disparity of culture and values between China and the West, multinational seed companies know well that they have to adopt a localization strategy to settle, develop and expand in China, especially workforce localization. Following the saying "When in Rome, as do as the Romans do", they try to tap into Chinese economy and society as soon as possible in terms of talent training and reserve, from germplasm resources collection to variety breeding, corporate culture to the public welfare, technology transfer from home to R&D in China, etc. With a solid base for the localization in China, multinational seed companies have a clear path to achieve a rapid expansion.

There are generally four major strategies for multinational seed companies to achieve their localization in China.

The first is setting up joint ventures. Multinational seed companies clearly understand that they can't set up a company and dominate the Chinese market by themselves in a short time. Nevertheless, they can do so by cooperating with large seed companies in China. For example, in the 1990s, Monsanto respectively set up joint ventures with local seed companies in Hebei Province and Anhui Province, successfully introducing its Bt cotton variety in China. Some other multinational enterprises like DuPont, Syngenta and KWS followed this kind of strategy and successfully tapped into the Chinese seed market.

The second is setting up R&D bases. Aiming to strengthen technology export and market-oriented R&D, multinational seed companies have built a variety of R&D institutes in China. For example, in Oct. 2008, Syngenta established a biotechnology R&D center in Beijing, China's first agricultural biotechnology research institution set up by foreign capital. Then, in Oct. 2012, Syngenta jointed the Hubei Academy of Agricultural Sciences to set up an innovation center for natural products in Wuhan City, Hubei Province. Besides, in 2009, Monsanto established a R&D company named Monsanto Biotechnology Research (Beijing) Co., Ltd. The same year, Monsanto started conducting a collaborative research with the Chinese Academy of Agricultural Sciences in various ways by signing a Memorandum of Understanding with the latter.

The third comes with the employment of senior consultants. This is another crucial step for multinational enterprises to achieve their localization in China though it demands some preparatory work. For example, some multinational seed companies or international consulting institutes provided a financial aid for a number of scientific researchers who went abroad for study or training in the 1980s and 1990s. After returning China, most of these researchers occupied a position in research institutes, universities, associations or even government agencies. Many of them became senior consultants in multinational seed companies, including those who were promoted as academicians or important officials influential in certain field. With the combination of their senior consultants and capital strength, multinational seed companies are likely to influence the Chinese political, economic and scientific decision-making, helping to accelerate their localization in China.

Training professionals is another far-sighted and prepared strategy for multinational seed companies to completely tap into the Chinese market. Since 2000, DuPont has established scholarships in China's key universities such as Tsinghua University, Peking University, China Agricultural University, etc., with a total annual grant of USD100,000 divided among 2,000 students. In Oct. 2010, with the help of China's Ministry of Agriculture, Monsanto launched the Monsanto Scholarship Program in the Chinese Academy of Agricultural Sciences, China Agricultural University, Shandong Agricultural University, etc. Monsanto tends to award the outstanding undergraduate and graduated students determined to engage in R&D or industry in agriculture and life sciences' fields. It is worth mentioning that some masters and PhD hold key positions in research institutes and seed companies that had granted them, like Monsanto.

The disorder and underdevelopment of the Chinese seed industry means a great business opportunity for multinational seed companies. Their localization strategy paves the way to their sole proprietorship in the future. Currently, multinational seed companies are still prohibited for sole proprietorship or operation holding in China, but their acceptance is only a matter a time after their localization in the Chinese market. After all, being confident with the Chinese seed market, policy and law, multinational seed companies will transfer their joint ventures into sole proprietorship rather than withdraw their investment,

In the operating strategy, multinational seed companies comply with the Law of Global Chain, namely "customers' following" and "global key accounts". They tend to study seriously the local seed market, sales network, management localization and appropriate partners before expanding their business chains into a country. They won't hesitate to tap into a market when they believe that there is an opportunity with desirable customers or appropriate partners. Therefore, the Chinese seed market is not only facing world-class leading multinational seed companies, but also the huge and effective international industrial chain.

Table contents of Seed China News 1304:

Winall Hi-tech' M&A gets reward in 2012

Seed business of DBN develops stably in 2012

Shandong Denghai performance sees growth in 2012

China's first fund for seed industry set up

Second batch of seed enterprises gain operation license nationwide

Multinational seed companies achieve localization in China

Domestic fresh corn industry under vigorous development

Domestic potato seed companies hard to become bigger

Large grain growers: thriving but in straits

Wang Feng: "Super Rice" subjective gauge rather than objective standard

China's soybean import dramatically reduces in Q1 2013

Seed China News, a monthly publication issued by CCM at the end of every month, mainly covers a diversity of topics, including market dynamic, company dynamic, crops, seed market, etc. With the latest news in seed industry and in-depth analysis on government direction and market competition, Seed China News can provide you with valid information which would help you make rational decisions in investment, production, marketing, etc.

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, and consultancy service. 

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

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

Dow AgroSciences’ overview for South America

The company has reported worldwide outstanding results for 2012, with an increase of 13% (vs 2011) for total sales (compared to 11% average for agricultural (AG) market) that includes seed sales with 27% growth (vs 14% average of AG market) plus crop protection sales showing 10% growth (vs 9% average of AG market). The EBITDA increase was 7%, according to CCM’s latest monthly report, Crop Protection South America Monthly Report issued in March.

A key player for this growth certainly was South America (the second largest worldwide market of sales, behind North America). In the tropical and subtropical climate of this region are grown soybeans, corn, sugarcane, wheat, fruits, vegetables, sunflower oil seed and rice and the company offers a variety of crops protection and seeds to achieve the maximum yields and health protection, as well as for livestock through pasture’s products.

A wide selection of herbicides, insecticides and fungicides to meet customers' needs, as well as trait technologies such as HERCULEX® and POWERCORE™ in corn and WideStrike™ Insect Protection technology in cotton, is available.

The company is deploying the South American market strategy aimed to the following countries and main related products, as follows:

Argentina: 

- Seeds (Hybrids and GMO) for corn, sunflower and sorghum.

- Herbicides for chemical fallow, 2-4 D products and glyphosate products (e.g Panzer Gold).

- Fungicides (e.g Planet X-tra for soybean diseases).

- Insecticides / Omega 9 oils / Pastures (weed’s control).

Brazil:

        - Herbicides, insecticides and pastures.

        - Sentricon: products for controlling termites eliminating the core of the colonies.

        - Lorsban chlorpyrifos based insecticide.

Bolivia and Paraguay: Products for pasture’s weed control.

Colombia: Herbicides, insecticides and pastures.

Chile: Natural insecticides for apple, pear and walnut trees.

Table Contents of Crop Protection South America Monthly Report 1303:

Argentina to build a new R&D biotechnology center

Bayer CropScience looking for expanding business in South America

Dow AgroSciences’ overview for South America

Syngenta – Financial results for Latin America

Argentina: Focusing on barley quality issues

Brasil crop overview for 2012/13 season

Brazil is sustaining the biofuel strategy

Paraguay: Transgenic cotton’s high yields require performing three harvests

Bolivia soybean overview

Bolivia crop export overview

Paraguay crops overview

Brazil: Late corn season (milho safrinha) to be tested at Mato Grosso do Sul state

Brazil: Cargo ships port’s logistic jam – status on March 8, 2013

Brazil: Black bean’s price increases 40% in a year

Argentina: Imported glyphosate price is steady after rising 70% last year

Argentina: Lowest chickpea’s export prices since late 2010

Brazilian Superior Court of Justice rejected Monsanto’s appeal for payment of royalties

Argentine province’s labor court halts Monsanto seed’s investment

Paraguayan Environmental Protection Agency boosts biogas generation project

Peruvian women awarded as “protective guardians from Andean quinoa and other grains”

Colombian Agriculture Society calls for dialogue to negotiate

Colombia: Boosting the new agriculture & livestock technical assistance national policy

Chile approved new pesticide

Brazil with a controversial launching for a soybean fungicide

Argentine researchers to study natural plant showing high resistance to drought

Argentina: GMO Product’s approval & launchings

Nidera Argentina – New GMO crops

Argentina weeds resistance

Paraguay: FAO urges to coordinate actions against HLB citric’s plague

Bolivia celebrated the 18th edition from Exposoya exhibition

Uruguay: Opening of national Expoactiva 2013

Brazil projected production gross value

Paraguay – New elected president for CAPPRO

Bolivia late soybean season

Argentina’s Expoagro 2013 – Early initiatives post-exhibition

Crop Protection South America Monthly Report, a monthly publication issued by CCM on 31^st, offers timely update and close follow-up of South America's crop protection industry’s dynamics and the crops’ evolution and trends. This monthly report also features in-depth analysis on market development through abundant facts and figures. 

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, and consultancy service. 

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

Guangzhou CCM Information Science & Technology Co., Ltd.
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Email: econtact@cnchemicals.com

Argentina will get the biggest corn production in 13 years

On Feb. 14, 2013, according to the Buenos Aries Cereal Exchange, Argentina will harvest a record production of corn at 25 million tonnes in the season of 2012/13. If this estimation comes true, the production of corn will be 16.3% higher than 21.5 million tonnes in the previous season.
 
Besides the Buenos Aries Cereal Exchange, the US Department of Agriculture (USDA) even estimated that the production of corn in Argentina will reach 27 million tonnes in 2012/13. Be it 25 million tonnes or 27 million tonnes, the estimation of corn production in Argentina in 2012/13 will be the highest in 13 years.
 
Although the production of corn in Argentina will break a record in 2012/13, the planting area of corn is lower than that in the previous season. According to data from the Buenos Aries Cereal Exchange, the planting area of corn is about 3.6 million ha. In 2012/13, suffering a decline of approximately 15% compared with that in 2011/12.
 
In fact, some regions in Argentina suffered from the drought before Jan. 2013 and high thermal records. These factors would cause the losses in yield potential of crops. However, as the rainfall comes in late Jan. 2013, it improves the soil conditions and encourages the development of crops.
 
With the record production of corn expected in Argentina, the local government will boost the corn exports in 2012/13. Some experts think that it will increase the corn supply in the world, thereby helping ease the global corn price. However, the technical manager of the Federation of Agriculture and Livestock of Mato Grosso (Famato) considers that the expected increasing exports of corn in Argentina could not have a great effect on the international market.
 
According to the data from USDA, Argentina is the third largest exporter of corn in the world, behind Brazil and the US. The export volume of corn will reach 19.5 million tonnes in Argentina in 2012/13, accounting for an approximate 20% of world's total corn export volume and 72% of Argentina's total corn production in 2012/13. But in Brazil, the total export volume of corn is expected to just account for about 34% of the total domestic production in 2012/13. It means that even if Argentina exports all of its corn production, any effect on the international market should be very limited.

Crop Protection South America Monthly Report is a monthly publication released by CCM’s. It offers timely update and close follow up of South America's various kind of Crop market dynamics, analyze the market data and trends. Major columns include companies' current dynamics and market situation, a close watch of government policies and regional dynamics.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

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Supply of domestic corn will keep sufficient in H1 2013

In 2012, China's import volumes of fresh cassava and dry cassava increased by about 17.7% and 42.8% respectively. Meanwhile, their prices decreased by about 11.5% and 9.8% respectively.

It is predicted that the supply of domestic corn will keep sufficient in H1 2013 because of the increasing supply of corn and the expected continuously weak demand for corn from downstream industries.

Besides, the sufficient supply of corn set the stage for the decreased price of domestic corn starch sugars. For example, the prices of high fructose corn syrup F55 (HFCS F55) and glucose monohydrate, two major corn starch sugars in China, were USD620/t and USD565/t in Nov. 2012, and they decreased to USD602/t and USD546/t in Jan. 2013 respectively.

Sweeteners China News is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends. Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, consumption trend & competitiveness.

About CCM

As a leading market research consulting company in China with more than 10-year-experience, 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.

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China's first Agricultural Insurance Regulations issued

Investment in agricultural industry has been hot in recent years, and modern agriculture is also considered to be a potential investment field. Based on the current situation of China's modern agricultural industry, it's suggested that more capital and highly advanced management are needed for building some famous brands and increasing the industrial concentration.

On 12 Nov., 2012, China's first law for agricultural insurance, Agricultural Insurance Regulations (Regulations), was formally issued after the soliciting of public opinions for half a year. Besides, the Regulations shall be effective as of March 1, 2013, according to an announcement published by the Legislative Affairs Office of the State Council (LAOSC).

Agricultural insurances can be divided into planting industry insurance, breeding insurance and forest insurance basing on agriculture category. Among which, planting industry insurance refers to the business of providing insurance to grain crops and industrial crops. That is to say, rice, wheat, soybean, sorghum, corn, cotton, tobacco, tea, mulberry, sugarcane, herbs, vegetables, etc. are underwritten by the insurance.

The Regulations mainly aims to regulate agricultural insurance activities, protect the lawful rights and interests of the parties to the contract for agricultural insurance, enhance the capability to withstand risks during agricultural production and help agricultural insurance develop well.

Crop Protection China News is a monthly publication released by CCM. It offers timely update and close follow-up of China’s various kind of crop market dynamics, analyze the market data and trends. And the major columns include companies' current dynamics and market situation, a close watch of government policies and regional dynamics. If you want to know more about Crop Protection China News, you can contact us.

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For more information, please visit http://www.cnchemicals.com.
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Baolingbao approved to produce and sell IMO as new feed additive

On Aug. 27, 2012, Baolingbao Biology Co., Ltd. (Baolingbao) announced that its isomaltooligosaccharide (IMO) had been approved by the Ministry of Agriculture (MOA) to be produced, sold and used as a new feed additive in China, bringing a new profit source to Baolingbao, according to CCM’s  September issue of Corn Products China News.

Baolingbao plans to make some changes in its 50,000t/a food grade IMO production line to produce feed grade IMO as the production line's capacity is not fully utilized and shares a lot in production process with feed grade IMO, revealed Miss Lv from Baolingbao's Bond Department. In addition, according to Miss Lv, the company is undergoing procedures for a production license for the product, which is estimated to be put into market in Nov. 2012. 

IMO is promising as feed additive because it is a good substitute for antibiotics and Chinese government is phasing out the use of antibiotics species applied in feed. IMO has functions on animals such as accelerating the propagation of beneficial bacteria and inhibiting the growth of noxious bacteria in intestinal tract, speeding the digestion of nutrition and improving immunity. 

Baolingbao will get benefit from feed grade IMO thanks to not only its large potential market but also some policy preferences.

 

According to MOA, Baolingbao's feed grade IMO can be only applied in compound feed of egg-laying hens and the application scope of the product is 0.2%-0.4%. Since domestic output of compound feed of egg-laying fowl, among which egg-laying hens part take up the most part, is quite huge–25.2 million tonnes in 2011 according to China Feed Industry Association, the demand for feed grade IMO is quite charming. 

 

As to policy preferences, Baolingbao is protected as the unique feed grade IMO producer in the monitoring period years, because other enterprises are not allowed to produce or import feed grade IMO during the period according to Administrative Regulations on Feed and Feed Additive implemented on May 1, 2012. Additionally, feed grade IMO is exempted from value added tax during the monitoring period, said Miss Lv.

 

Overall, Baolingbao estimated that feed grade IMO would bring the company about USD0.88 million-USD1.75 million (10%-20% of the total net profit of Baolingbao in 2011) newly added net profit in 2013. 

Actually, Baolingbao wants to profit more with feed grade IMO. "We want to utilize the fiber part, protein part and corn embryo of the side product of starch sugar to produce feed, then mix it with feed grade IMO to produce oligosaccharide feed." said Miss. Lv. On Aug. 16, Baolingbao announced that one of its researches, Producing Oligosaccharide Feed with Side Products of Starch Sugar, successfully passed assessment. And Baolingbao is talking about cooperation with a domestic feed producer. If Baolingbao can successfully produce oligosaccharide feed, it will probably get more profit.

Source: Corn Product China News 1209

http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html

Main content of Corn Product China News 1209:

China's import volume of DDGS surges by 163.5% in July 2012

Chinese corn products Imp. & Exp. analysis in July 2012

Domestic market price of corn starch enjoys uptrend in Aug.-Sept. 2012

Market prices of corn products as feed enjoy uptrend in China in Aug.-Sept. 2012

Changshouhua Food presents good performance in H1 2012

Baolingbao approved to produce and sell IMO as new feed additive

Longlive Bio-technology may perform better in H2 2012 against slightly poor performance in H1 2012

Chinese VC posts bad performance in H1 2012

China's MSG price declines under increasing cost and demand in H1 2012

12th Five-Year Plan for Renewable Energy supports the development of cellulose fuel ethanol

Domestic corn suffers armyworm and typhoon disasters in Aug. 2012

China's import volume of cassava starch up 13.0% in the first seven months of 2012

… …

Corn Products China News, a monthly publication issued by CCM International on 20^th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

For more information about Corn Product China News, please contact 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_1221.html