Plan for Grain Processing Industry Development 2011-2020 Issued in Feb. 2012

On 24 Feb. 2012, the Ministry of Industry and Information Technology of China and the Ministry of Agriculture of China co-issued a Plan for Grain Processing Industry Development 2011-2020 (the Grain Plan), which points out the development direction for corn deep-processing industry in the future, according to CCM International’s March issue of Corn Products China News.

 

In accordance with the Grain Plan, China's grain processing industry achieved a great growth from 2005 to 2010: its total output value reached USD412.7 billion in 2010, surging by 70% over that in 2005. Besides, the number of large and powerful enterprises also enjoyed an increase: the number of producers with wheat processing volume over 400 tonnes per day reached 427 in 2010, 3.1 times of that in 2005. Besides, the proportion of top 10 corn deep-processing enterprises' sales revenue among total in the industry reached 38% in 2010. However, there were still problems in grain processing industry, such as unreasonable industrial structure: lots of small producers are with inferior production capacity; unsatisfactory quality guarantee system and poor capability of research and innovation. 

 

In view of the current development situation in grain processing industry and the prediction of domestic and global economy in the next few years, the Grain Plan points out some specific goals for the industry's development by 2015 and 2020: the total output value shall reach USD619.0 billion and USD1,095.2 billion by 2015 and 2020 respectively; the supply of grain for edible use shall be no less than 257.5 million tonnes and 252.5 million tonnes by 2015 and 2020 separately; the supply of grain for feed use shall be no less than 200.0 million tonnes and 227.5 million tonnes by 2015 and 2020 respectively.

In order to achieve the goals mentioned above, the Grain Plan proposes some detailed development direction for grain processing industry, and the following will be the focuses of corn deep-processing industry.

 

Firstly, to eliminate inferior production capacities and encourage leading enterprises to develop further, increasing industry concentration. Moreover, the Grain Plan specifically pointed out that by 2020, 3 million t/a capacity of corn starch shall be eliminated, accounting for 10.6% in its total domestic capacity in 2010.

Secondly, to restrain the capacity expansion of some corn products, such as monosodium glutamate, citric acid, lysine, threonine, tryptophan and alcohol; to stably develop starch sugar and sugar alcohol industries; to encourage the development of some enzymic preparations, organic acids and functional starch sugar all with high added value. In addition, the Grain Plan definitely encourages using non-grain raw materials to replace corn for production of the above products.

Thirdly, corn's supply shall be preferentially guaranteed for edible use and feed use, instead of industrial use, and the proportion of corn's consumption in deep-processing industry among total shall be limited to a reasonable level, which is suggested to be less than 26%.

 

Finally, foreign investors shall be restrained to enter into corn deep-processing industry. In fact, in 2010, the proportion of corn processing volume of foreign-owned companies among total was 26%, while those of private-owned and state-owned companies was 66% and 8% respectively. And the proportion of foreign-owned companies shall be further reduced in the future, in order to better control corn's consumption volume in deep-processing industry.

 

What's more important, the Grain Plan proposes some specific measures to guarantee corn deep-processing industry to develop toward the above direction. For example, to strengthen supervision and increase the threshold for entrance, to intensify financial support for leading enterprises or small and medium-sized enterprises with advanced production technology or high added value products and promising prospect; to exempt the import tax of some equipment that can't be manufactured at home for governmentally encouraged grain processing industry. These measures will positively help corn deep-processing industry in the future, if they are implemented effectively.

 

As a whole, the Grain Plan does not provide new ideas for corn deep-processing industry, without obvious effect on the industry in the short term, but it will work better for a long term, just like other related policies did, such as the 2011 edition of Catalogue of Industries for Guiding Foreign Investment, and the 12th Five-Year Plan for Food Industry. Overall, these policies definitely pointed out the development direction for the industry, and future regulations will be in line with these policies, so as to guarantee corn deep-processing industry to head toward the direction ruled within them.

Source: Corn Product China News 1203

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

Content of Corn Products China News 1203:

7.8%, domestic output of MSG enjoys an increase in 2011

Both import and export volumes of PLA in China increase in 2011

HFCS' consumption in China expected to increase in 2012

Import volume of L-phenylalanine in China increases by 48.8% in 2011

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

Domestic furfural price increases slightly in March 2012

Domestic prices of four key amino acids perform differently in March 2012

Plan for Grain Processing industry Development 2011-2020 issued in Feb. 2012

Analysis into domestic lysine's market in 2011

Xiwang Sugar plans to increase corn starch and corn germ's supply to Xiwang Group related companies

Domestic potato industry expected to develop fast in the next few years

Domestic corn price heads up in March 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.

About CCM International

CCM International 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 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.

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_1008.html

Draft of China’s First Grain Law Released

The Legislative Affairs Office of the State Council of China (LAOSCC) released an opinion soliciting draft of the Grain Law on 21 Feb., 2012, aiming to invite public opinions, based on CCM International’s latest issue of Crop Protection China News.

According to the National Development and Reform Commission and the State Administration of Grain, the joint preparing units of the draft, the main purpose of drafting the law is to ensure grain security by stabilizing grain output, safeguarding grain production and strengthening control and supervision over the market.

Moreover, in the grain processing industry, the draft makes some strict stipulations, aiming to better safeguard food security. For example, grain producers are forbidden to process mildewed grains or those that have been contaminated by pesticide residue, mycotoxin or heavy metals; contaminated vehicles and packing materials are forbidden to be used to transport grain; additives shall be added accordingly.

Aiming to ensure the Grain Law to be fully executed, the draft sets up a Provincial Chief Executive Accountability System. It regulates that the Provincial People's Government Chief Executive shall take the responsibility for grain security in his/her local administrative division. "Clearly defining the responsibilities of the People's Governments at all levels and relevant departments is very important to ensure the implementation of the Grain Law," said an official from LAOSCC.

Actually, the legislation of the Grain Law has been proposed since 1999. However, owing to the complex benefit-based relationships among many related parties, which are difficult to be balanced, the Grain Law has been delayed to be drafted. As more and more worries about grain safety have been raised from the public, especially when China experienced a grain crisis in 2008, Chinese Government finally put its foot down to speed up the legislation of the Grain Law. It is also considered to be the first law that is legislated exclusively for grain in the history of the People's Republic of China.

All in all, it is a very important step that China has taken to ensure domestic grain and food security. The legislation of the Grain Law has been expected and largely supported by the public ascribed to the public's growing concern over grain and food security.

Although some of the stipulations in the draft have raised disputes among the public, many people in China still hold the attitude that "late legislation" is better than none.

Even so, there is one stipulation in the draft should be pointed out, which has confused and disappointed most of the people in China.

Nowadays, GM food safety issues are still very sensitive topics in China. So far, China has approved and granted biosafety certificates to seven GM crops, such as BT cotton and disease-resistant papaya, and approved biosafety certificates of five GM crops for import as processing materials, i.e. GM cotton, GM soybean, GM corn, GM sugar beet and GM canola. Although China has made clear statements that it has never permitted any GM crop to be commercially planted in domestic farmlands, illegally commercial planting of GM crops in China has reached a serious condition, especially GM corn and GM rice. People who are sensitive to GM security have hoped that the Grain Law will take measures to stop the commercial planting of GM crops and punish the illegally planting.

However, what disappointed them is that the statement of the stipulation in the draft is very simple and unclear. According to the 12th stipulation in the draft, any institution or individual must not apply GM technologies to principle grain cultivars without approval. Some sensitive experts expressed their worries about the stipulation that the words "must not and without approval" instead of "are forbidden" used by the government may leave a loophole. They hope that the formal Grain Law which is to be released in the future will more specifically ban the application of GM technology on main grains.

"What we are opposing is the commercial planting of GM crops which will then enter food chain. But we don't oppose the research of GM technology," said Fang Lifeng, director of the food and agricultural project of Greenpeace China.

The stipulations in the Grain Law draft will be discussed according to the opinions from the public and a final version will be nailed down in the formal Grain Law. According to LAOSCC, anyone who has opinions on the draft can login in its official website and submit opinions before 31 March, 2012. Since the draft has not been submitted for discussion on the National People's Congress (5 March-14 March, 2012) and the Chinese People's Political Consultative Conference (3 March-12 March, 2012), it would not be released in 2012.

Source: Crop Protection China News 1203

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

Content of Crop Protection China News 1203:

Draft of China’s first Grain Law released

Review results of new pesticide products registration released

China to further focus on rural developments and food security

Sinochem to launch six new pesticide products

Huayang Technology's reorganization denied

Hailir Group selling pesticide subsidiary for IPO

Most listed pesticide companies' performance declines in 2011

China's export structure of pesticides changes in 2011

China's corn planting area to increase in 2012

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

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_1005.html