China’s evolving role in global agricultural trade
Alongside the OECD-FAO report ‘Agricultural Outlook 2013-2022’, the OECD and FAO have published ‘Focus on China’, highlighting China’s growing role in international trade in food and agricultural products. It notes that rice and wheat production is a growing policy focus, given food security concerns. The analysis points out that, following agricultural and rural reforms, China’s “agricultural output grew 4.5 times over the 1978-2011 period”. This growth is expected to slow in the coming decade as “increasing resource and rural labour constraints” are faced. Food price inflation has already become apparent, according to the OECD-FAO review. However, higher incomes and increased food availability have improved food security in China, “with the number of undernourished falling by almost 100 million since 1990, despite [China] adding an additional 200 million people to its population”.
The report notes that “from 2001 to 2012, China’s agricultural trade (imports and exports) increased from US$27.9 billion to US$155.7 billion…, with China’s net trade deficit in agriculture and food standing at US$31 billion in 2012.” This trade deficit in food and agricultural products is forecast to continue to grow, as consumption growth will outpace production growth by 0.3% per annum in the coming 10 years.
At the sector level, “China’s imports of oilseed are expected to rise by 40% over the 2013-22 period,” coming to account for 59% of global trade. The Chinese meat and dairy sectors “will continue to expand, with increasing feed requirements which will result in higher imports of coarse grains” – and these import requirements will be in excess of current import quotas. With Chinese milk production projected to grow more slowly than consumption growth, Chinese dairy imports are projected to rise by 20%, “with skimmed and whole milk powder accounting for 82% of total dairy imports”.
Chinese sugar imports are projected to “stay above the tariff-rate quota [TRQ] level over the projection period”.
The area under cotton in China is expected to decline by 21% as cotton usage falls in response to increased competition in textiles from India and other lower wage economies. This is a major reversal of the trend over the last decade.
As noted in the OECD-FAO summary of the ‘Agricultural Outlook 2013-2022’ report, key uncertainties remain in terms of the outlook for Chinese agricultural trade: these relate to the sustainability of current growth rates and the impact of climate change.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
Sources:
OECD-FAO, ‘Focus on China – OECD-FAO Agricultural Outlook 2013-2022’, 2013
http://www.oecd.org/site/oecd-faoagriculturaloutlook/china-2013.htm
OECD-FAO, ‘Agricultural Outlook 2013-2022’, summary, 2013
http://www.oecd.org/site/oecd-faoagriculturaloutlook/summary-2013-EN.pdf
OECD-FAO AGRICULTURAL OUTLOOK OECD.ORG
OECD-FAO Agricultural Outlook ? Focus on China - OECD-FAO Agricultural Outlook 2013-2022 With comparatively little agricultural land and water resources, China has made food security and self sufficiency in the key food crops of rice and wheat a...
U.S. TRADE REPRESENTATIVES MET WITH CHINESE OFFICIALS TO DISCUSS BEEF IMPORTS
China is in talks with the United States to allow beef imports from cattle up to 30 months old, a spokesman forthe country’s top quality watchdog said on last Friday.
The General Administration of Quality Supervision, Inspection and Quarantine held talks withthe US Department of Agriculture and the Office of the United States Trade Representative to resume the imports of beef from cattle up to 30 months old. The talks were held during the 2013 US-China Joint Commission on Commerce and Trade in November, Chen Xitong,spokesman for the quality watchdog, said during a media conference.
Talks are still ongoing over some “technological issues,” Chen said.
Chinese authorities initially banned all US beef imports when mad cow disease was found in the United States in 2003.
In 2006, China lifted the ban on beef imports from cattle up to 30 months old and five kinds of by-products.
However, US beef imports to China continue to stagnate due to the fact that US authorities, whoinsisted that China lift the ban on all beef imports and products, refused to issue sanitarycertificates for beef from cattle up to 30 months old, according to the quality watchdog.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.chinadaily.com.cn/china/2013-11/29/content_17141681.htm
The Vietnam livestock situation in the 11 months of 2013
According to the Ministry of Agriculture and Rural Development, in the 11 months of 2013, the total of pigs in the country was 23.6 million, equally 99.1% year-on-year. The total of finisher pork production reached 3.3 million tonnes, a 2.1% increase year-on-year.
With the poultry industry, the total of the poultry in country was 317 million, a 2.94% year-on-year, in which the herd size of chicken reached 236.4 million. The total of poultry product reached 762,300 tonnes in the 11 months of 2013, a 4.05% increase year-on year. The production of eggs reached 7,422 million, a 1.7% increase year-on-year.
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://baodientu.chinhphu.vn/Thi-truong/Nguon-cung-thuc-pham-doi-dao-cho-cuoi-nam/187414.vgp
UK to export pig semen to China in S$92.5m deal
Britain wins right to export frozen, fresh ‘porcine semen’ to improve pig genetics in China
Britain has won the right to export pig semen to China in a deal worth ?45 million (S$92.5 million) a year.
Mr Owen Paterson, the environment secretary, who is accompanying British Prime Minister David Cameron on his trip to China, has also embarked on negotiations to export pigs’ trotters — a local delicacy — to China.
Under the deal with China, the “porcine semen” can be flown to the country in frozen and fresh form. Pigs will not be flying but their seed will take to the air.
A No 10 spokesperson said: “We’re doing all we can to ensure that businesses up and down the country reap the rewards from our relationship with China. And that includes our pig farmers. This new deal to export pig semen will be worth ?45 million to UK firms and means Britain’s best pigs will help sustain the largest pig population in the world.
“And we’re not stopping there, we’re talking to the Chinese about serving up pigs trotters on Beijing’s finest dining tables. That would be a real win-win — a multimillion pound boost for Britain and a gastronomic treat for Chinese diners.”
The exports start in the first quarter of next year. Four UK artificial insemination centres, based in England and Northern Ireland, will start making preparations for the exports in the new year.
Half of the world’s pigs are in China but the country needs to improve pig genetics. A government source said: “China has an interest to increase the efficiency of their production, while minimising the environmental impact of increased production. The UK industry for pig production can play a large and important role in helping China achieve greater efficiency through the provision of high-quality genetic stock.
“UK porcine semen will be key to help the Chinese improve their pig production and make the industry more productive in the long term. The quantities are not the important factor for this trade; it is the quality that is important.”
Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.This email address is being protected from spambots. You need JavaScript enabled to view it.
http://m.todayonline.com/chinaindia/china/uk-export-pig-semen-china-s925m-deal