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

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 nation’s total grain yield according to official statistics, which means that China’s grain self-sufficient rate has dropped below 90%, according to CCM’s December issue of AgriChina 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 China’s 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 grain self-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), China’s 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.

 

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

Government’s 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 China’s 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 financial subsidy

Nestlé 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 31^th 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 in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

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Find Hot News in Crop Protection China News 1222

Published on the 15^th & 31^th every month, 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. Major columns include companies' current dynamics and market situation, a close watch of government policies and regional dynamics.

Following are headline news of the latest issue of Crop Protection China News:

Nantong Jiangshan to acquire Thai agrochemical enterprise

Nantong Jiangshan announces to acquire a Thai agrochemical enterprise at a cost of no more than USD33.39 million on 20 Nov., 2012.

Anhui Guangxin tries IPO again

After more than one year's efforts in dealing with all the problems the CSRC pointed out in 2011, Anhui Guangxin tries for an IPO again in 2012.

Ningbo Tide achieves remarkable performance in international market

Ningbo Tide achieves remarkable performance in international market, becoming a benchmark to develop overseas market.

Government purchasing: a double-edged sword

Government purchasing has again become a hot topic in domestic agricultural means of production industry while approaching the end of 2012.

China's first Agricultural Insurance Regulations issued

China's first law for agricultural insurance, namely Agricultural Insurance Regulations, shall be effective as of 1 March, 2013.

China actively participates in development of FAO/WHO pesticide specifications

ICAMA holds FAO/WHO Workshop on Development of Pesticide Specifications in Haikou City during 5-9 Nov., 2012, aiming to help domestic pesticide enterprises to better understand the importance of applying for and developing international pesticide specifications.

Lier Chemical shuts down chlorpyrifos production lines

Lier Chemical announces to shut down its raised chlorpyrifos production lines on 20 Nov., 2012.

Gofar Bio-Pesticide's production halts

Beihai Gofar plans to comprehensively halt the production of its bio-pesticide subsidiary, namely Gofar Bio-Pesticide, due to the continuous deficit of this bio-pesticide company.

Huilong sets foot in micro-credit industry to promote its development

Huilong is going to acquire three micro-credit companies to set foot in the field of micro-credit business and then to promote its rapid development.

China pesticide TC output increases by 19.29% YOY in first ten months

China pesticide TC output increases by 19.29% YOY in first ten months

Bayer and DuPont newly gets fungicide TC registered in China

Bayer and DuPont newly gets fungicide TC registered in China

Domestic fungicide export volume in Q3 2012 increases

Domestic fungicide export volume in Q3 2012 increases

Pesticide sales value in Q1-Q3 2012 surges by 21.9%

Pesticide sales value in Q1-Q3 2012 surges by 21.9% 

About CCM
As a leading market research consulting company in China with more than 10-year-experience, CCM International 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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Government purchasing: a double-edged sword

While approaching the end of 2012, Government purchasing has again become a hot topic at many agricultural means of production conferences. Many pesticide enterprises, especially those missing the government purchasing this year, expressed that they will continue to lay great efforts to prepare for the government purchasing battle in 2013, according to CCM’s November issue of Crop Protection China News.

Since the Ministry of Agriculture of China (MOA) released the agricultural subsidy policy on 6 April, 2012, USD254.37 million (RMB1.6 billion) of subsidy has been allocated to 11 winter wheat planting provinces and areas in China to subsidize farmers' use of pesticides and foliar-fertilizers on winter wheat, with total planting area reaching 21.33 million ha. Adding up the subsidies allocated on rice, vegetable, tobacco, cotton, etc., the whole government purchasing capital of agricultural means of production in 2012 is estimated to reach USD317.97 million (RMB2 billion).

Government purchasing is now called as a double-edged sword because it brings both advantages and disadvantages to domestic agricultural means of production industries. As the capital of government purchasing gradually grows in recent years, more and more domestic enterprises are attracted to scramble for the bid inviting of local governments and those enterprises who win the bid enjoy good profit. Take Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon), a typical enterprise in domestic government purchasing of agricultural means of production for example, it won the bid of 300 tonnes of pymetrozine in the government purchasing of Jiangxi Province in 2010, valuing USD15.9 million. In 2011, its pymetrozine products again won the government purchasing bid of Jiangsu Province with the quantity of 120 tonnes, valuing about USD6.35 million.

The government purchasing not only benefits the performances of the enterprises who win the bid, but also promotes their products for free. Owing to domestic chaotic pesticide market, domestic farmers with low educational level usually can't tell counterfeit agricultural means of productions from good quality ones. When the government purchases agricultural means of productions for them, they believe that these products from government purchasing are reliable and show great loyalty to the brands of the products when they buy them by themselves.

Moreover, government purchasing not only helps farmers to save a considerable spending on agricultural means of production, but also ensures farmers to use the right pesticides and fertilizers which are the main cores of Chinese Central Government to carry out the policy of government purchasing.

However, except for those enterprises who enjoy benefit from government purchasing, others and those traditional dealers of agricultural means of production, on the other sides, complaint that government purchasing is unfair to some extent and has affected greatly the traditional sales channels of agricultural means of production.

Owing to the cumbersome procedures of the bid inviting, lots of pesticide enterprises lack experiences of preparing bidding materials. As many pesticide enterprises located in different provinces need to travel to other provinces for the bid inviting, they are forced to give up when they find that it is impossible to fetch the materials needed in a short time. In addition to the cumbersome procedures and lots of bid materials needed, the high threshold of the enterprise's registered capital set by local governments is also a big pressure to the pesticide enterprises who want to gain the bid inviting, especially those medium and small sized ones. Some provinces which invite public bidding by provincial authorities only allow large and famous pesticide enterprises to participate in.

Traditional pesticide dealers feel great pressure in government purchasing activities as well. As those government purchased products are distributed to farmers for free, the sales channels of pesticide dealers continue to shrink. Moreover, some of these products will not be used in the right year due to different planting conditions and outbreak conditions of pest and diseases but will be used next year, thus affecting the sales of pesticide dealers.

Although many enterprises complaint about the unfair rules in local government purchasing, they still believe that it represents the third kind of sales channel in domestic agricultural means of production industry. The only way to get involved in the activity is no other than better preparing and actively participating.

Source: Crop Protection China News 1222

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1222：

Nantong Jiangshan to acquire Thai agrochemical enterprise

Ningbo Tide achieves remarkable performance in international market

Anhui Guangxin tries IPO again

Government purchasing: a double-edged sword

China's first Agricultural Insurance Regulations issued

China actively participates in development of FAO/WHO pesticide specifications

Lier Chemical shuts down chlorpyrifos production lines

Gofar Bio-Pesticide's production halts

Huilong sets foot in micro-credit industry to promote its development

Crop Protection China News, a monthly publication issued by CCM on 15^th&31^th of every month, offers timely update and close follow-up of China’s Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development

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.

Please visit http://www.cnchemicals.com for more information

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