Dallas, TX (PRWEB) December 12, 2013
Chinese government declares that the total output volume of grains in China was 589.57 million tons in 2012, increasing by 3.2%. In 2012, the total planting area of grains in China was 111.267 million hectares, increasing by 0.6% YOY. The planting area in many regions remained stable or slightly increased, and that in a few regions decreased. In 2012, the planting area of unhusked rice and corns in China was 30.297 million hectares and 34.949 million hectares respectively, increasing by 240,000 hectares and 1.407 million hectares YOY; that of wheat and soybeans was 24.139 million hectares and 7.177 million hectares respectively, decreasing by 131,000 hectares and 712,000 hectares YOY.
With the increasingly large population and improved living standards of Chinese people, the demand for meat, dairy products and eggs keeps growing. Therefore, the demand for grains also keeps rising in China. With the low profits of engaging in agricultural activities, a large amount of labor force in rural areas has moved to urban areas more than 30 years after China's reform and opening-up. China agricultural industry is in short of labor force and the output volume of grains can hardly increase.
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With the imbalanced relation between the supply and demand of grains, China has to import a large number of grains. Before 2003, the export scale of agricultural products in China was larger than the import scale, and the trade surplus was between USD 2 billion and USD 6 billion. However, the import value of agricultural products in 2004 reached USD 28.13 billion, and the trade deficit was USD 5.04 billion. In 2012, the trade deficit was USD 49.19 billion, increasing by almost 10 times in 8 years. If grains refer to cereals, beans and potatoes, China imported more than 72 million tons of grains in 2012, accounting for above 10% of that of newly supplied grains (total grain output volume + cereal import volume + soybean import volume) in 2012. China becomes the largest importer of grains around the world.
There are tens of thousands of local grain processing enterprises in China. Most of them are regional enterprises, and there are also a few leading enterprises (e.g., COFCO Corporation). As there are huge potential opportunities in China, many international grain processing giants have entered China market.
In recent years, Chinese government issued a series of policies to promote the development of grain production, such as cancelling the agricultural tax, releasing agricultural subsidies, and issuing the policy of grain procurement at protective prices. These policies can benefit the production of grains in China. As many labor force in rural areas has moved to urban areas and the prices of chemical fertilizers, pesticides, seeds and other agricultural means of production are high, the profits of the planting industry are very low and the output volume of grains in China can hardly increase at high speed.
It is predicted that the demand for grains in China will keep increasing year after year in the next few years, and the import volume of grains will also rise. For grain-related industries, there are huge investment opportunities in China.
The author of this report has conducted many researches and surveys towards China grain industry, the grain processing market and grain processing enterprises, and has quoted many valuable second-hand data from governmental organizations and research institutions.
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