China is the world’s largest
producer and consumer of field crops, particularly rice, wheat and corn.
China is a major importer of grain, cotton and oils and its demand and
supply of field crops and field crop products has a significant impact on
world commodity and food markets.
Grain consumption in China exceeded production during the past years and this trend is likely to
continue. Food security and grain self reliance is a top national concern
in China and key commodities such as rice, wheat, corn, sugar and cotton are
considered to have national security implications and their production,
processing and marketing are strictly regulated by the government.
Maintaining an adequate reserve of field crop stocks such as rice, wheat,
corn, barley sorghum, millet, oats, soybeans, potatoes, and pulses remains a
top priority of the Chinese government.
With agricultural modernization, internationalization and accession to WTO, the Chinese field crop sector
is gradually being liberalized. However, the Chinese government is likely
to continue to regulate the production and marketing of key crop commodities
through government policy adjustments such as supports and pricing.
Agricultural tax will be
abolished for the next 5 years starting 2005 and farmers will be paid directly
based on planting area to help encourage farmers to produce field crops, and
improve rural income and social stability. However, the key determinant of
production area will be commodity price and the price for many field crops
have been increasing since 2003.
A number of GM rice, canola,
corn and soybean varieties are being evaluated in China by the Ministry of
Agriculture. The acceptance of GM commodities in China will have wide
implication for field crop production and trade in China as well as other
agricultural countries. The Chinese government is cautious about the
introduction and production of GM crops in China and the recent negative
report on GM crop trials in UK will have a significant negative impact on
the acceptance of GM crops in China.
China is very much concerned about the
increasing use of field crop land for the production of higher value
products such as horticultural products and for aquaculture.
Favourable policies and various tax and commodity price incentives are used
to encourage the production of key field crops.
Rice is the staple diet for more
than 60% of the Chinese people. The southern Chinese have a preference
for indica rice
while the northern Chinese have a particular liking for the japonica
variety. Rice consumption in China continues to increase, particularly for
processing. Significant quantites of the low quality rice, especially the
early season rice and those from state rice reserves, are used for poultry
and swine feed.
China is now a net rice
importer. China exports low quality indica rice to African countries and
some japonica rice to Japan, Russia and South Korea while it imports fragrant
rice from Thailand and indica rice from Vietnam.
China is the world leader in
rice research and has developed a number of GM rice and super high yield varieties that
can triple crop per year.
Chinese wheat production and trade varies from year to year according to price
and government policies. The government encourages the production of high
and consistent quality wheat that has a higher value and suitable for
processing, export and import replacement.
is forecast that wheat import will continue in the foreseeable future due
to rising demand for quality wheat and a low state wheat reserve. Major
traditional suppliers of wheat to China are US, Canada and Australia
Rising income and access has seen a shift in the consumption traditional wheat products
such as buns, dumplings and noodles to meat and seafood. Consumption of wheat based processed products in the form of convenience and bakery
foods such as instant noodles and western style cakes and biscuits is
Both feed and non-feed corn are mainly produced in the northern parts of
China. Corn yield and quality varies greatly from year to year depending on
The demand for feed corn in China is growing as it competes with wheat, rice,
oilseed meals and by-products from breweries as a feed ingredient for the
rapidly expanding livestock and aquatic sectors and for starch and ethanol
Most of the Chinese barley is used for brewing and only a small amount is
produced for feed.
China's malting barley requirement is rising due to demand for beer production. China is the world’s largest producer of beer. Malting barley is
mainly imported from Australia, Canada and France.
Unlike rice, wheat and corn, barley production and marketing are not
regulated by the government through policies and pricing but this situation
is expected to change the not too distant future.
Sorghum is usually produced on poor or marginal land with little water and
is used in China mainly for the production of traditional high alcohol
content “white liquors”.
Despite the increasing consumption of beer and wine in China, moderate
growth in the consumption of white liquor
is likely to continue.
“MAO TAI” and YU LIANG YE” are the 2 most famous white liquors in China and
are the favourite drinks in many parts of China, particularly in the north,
central and western regions where white liquor consumption is part of the
life style. The white liquors can have up to 70% alcohol
content but in line with changing life style and health consciousness, low alcohol white liquors are now common place.
grown mainly in the northeast, northwest and central/southern inland parts
of China on poorly irrigated land and are intercropped and multi-planted with
Domestic production and consumption of pulses in China have been rising. The
Chinese consider pulses as health food and greater pulse production and
consumption is encouraged by the government
Demand for edible beans such as mung, adzuki, kidney and broad beans, dry
peas and lentil from overseas countries such as Japan, South Korea and South
Africa has been strong due to improving quality and competitive production
the price for mung beans in China rises, Chinese processors are importing
more feed grade dry peas, primarily from Canada, as substitutes for mung
bean for the manufacture of starch for snack food and vermicelli
China is a
major producer and importer of oil seeds. Major oil seeds
produced and consumed in China are soybean, peanuts, canola,
sunflower, cotton seed and sesame.
consumption of oils and oil seed by-products will continue to rise,
especially oil seed meals as feed for the livestock and aquatic sectors due to falling domestic production
of fish meal
and its reduced supply
from Latin America
for increased consumption of oils in China is high as the average oil
consumption per capita in China is low compared to developed countries. The
average oil consumption per capita in China is about 15 kg compared to 24 kg
US, Brazil and
Argentina are major exporters of soybean to China while Canada is the
largest exporter of canola to China. Chinese oil imports have dipped over the last few years due to high prices and freight costs.
Significant import of oils is likely to continue as China is cautious about
the introduction of high yield GM oil seed varieties for farming in China.
Supply of field crop seeds
Introduction and development of new field crop varieties
Import of field crops, field crop products, by-products
Supply of field crop farming machinery and technology
Supply of water-saving irrigation equipment and systems
Postharvest storage and handling equipment and technology
Supply of field crop processing equipment and technology
Develop and Capture Business Opportunities in China
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