January 4, 2011

China strives for wheat, corn sufficiency in 2011-15

Over the next five years, China will focus its efforts to ensure self-sufficiency in domestic staple grain of wheat and corn, while increasing production of agricultural products that are in short supply.

According to Agriculture Vice Minister Wei Chao'an, China must stabilise grain acreage at more than 107 million hectares and production capacity at above 540 million tonnes during 2011-15 period.

At present, the country's non-glutinous rice supply is slightly tight, soy market sees wide gap between supply and demand, while corn is no longer oversupplied. China is on track to achieve self-sufficiency of paddy rice, wheat, corn, Chao said.

The country's cotton output in 2010 is projected to fall 2.8% on-year to 6.2 million tonnes while sugar production to rise moderately, he said. Oilseeds output is expected to top 31.5 million tonnes, almost unchanged from the previous year.

Chao also forecast China will import more than 50 million tonnes of soy in 2010, compared with 42.55 million tonnes in 2009, mainly driven up by rising demand of edible oil and protein fodder. Only 30% of soy demand is expected to be supplied from home production, he added.

In addition, China's corn processing mills may need 70 million tonnes of corn in 2011, higher than 60 million tonnes in 2010. Currently, over 90% of domestic corn demand comes from fodder and industrial processing sectors.

Wei emphasised that self-sufficiency rate of edible oil should hold at more than 40% and that of sugar at 90% in the following years. The government will make effort to maintain annual production of oilseeds, cotton and sugar crops at the bottom of 35 million tonnes, 7 million tonnes and 140 million tonnes respectively.