January 13, 2012

Grain and oils processing output in China is set to grow more than 12% annually in the 2011-2015 period, according to the nation's development plan for the grain industry.

The plan, published on the website of the State Administration of Grain, says that governments at all levels should encourage and guide merger and acquisition of large processing enterprises and promote cooperation between upstream and downstream industries to foster well-known brands and enhance core competitiveness.

Meanwhile, China will phase out the outdated grain and oils processing capacities, and compress the surplus capacities.

The country will also build comprehensive utilisation and processing bases for paddy and wheat in major producing areas, and in the meantime actively develop corn food while strictly controlling capacity expansion of deep corn processing companies.

The plan requires that China should take full advantage of non-genetically modified soy in the northeastern areas and promote resources consolidation to raise production efficiency. Meanwhile, the country will rein in soy crushing projects as well as production capacities of rapeseed oil in some coastal areas.

According to the plan, the country will vigorously develop woody oil-bearing plants to improve its edible oil supply ability in the 2011-2015 period.