January 4, 2006

End of food aid unlikely to affect China's grain supply
 

The UN's World Food Programme (WFP) has officially stopped food aid to China since the start of 2006, concluding that the country has achieved success in alleviating the domestic hunger problem.

However, Ke Bingsheng, director of the agriculture ministry's Research Centre for the Rural Economy, said this move would not significantly affect domestic grain supply.

According to Ke, WFP aid to China has been reducing gradually in recent years. Also, the estimated US$40 million aid offered yearly was a "very small figure" compared with over US$1 billion offered by the Chinese government annually to help relief poverty.

Ke added that China's grain output in 2005 was estimated at 480 million tonnes. "China's grain production capability has reached a high level," he stated. Thus, the country would be able to meet grain demand for food, feed and other uses in the short term.

However, Ke cautioned that China's grain production would face significant challenges in the longer term. Domestic grain demand is expected to rise four million tonnes, or 1 percent annually, due to increasing demand for animal feed and industrial use.

Urbanisation has also reduced available land for farming in China, while water resources have been continuously diminishing. Thus, it would be "impossible" to expand farming area, Ke said.

While Ke acknowledged that some grain imports would still be needed, China could not fully depend on them due to its big population.

Ke said stimulating greater output a square metre of farmland would be the only solution. This could be done through improvements in technology and agricultural infrastructure, while training farmers in advanced management skills.