China limits additional corn-based ethanol processing capacity
 

China's National Development and Reform Commission (NDRC) recently announced that the government would not approve any new corn-based ethanol processing facilities and that current processing facilities will be reviewed and streamlined. 

The corn processing industry has been increasing so fast in China that more than 23 million tones of corn was processed in 2005, up 84 percent from 12.5 million tonnes in 2001, noted a USDA report quoting the China Food Newspaper.

Such rapid growth in corn processing has threatened the supply of corn for feed.  Demand for feed corn is also growing due to growth in the livestock industry.  Rising corn prices are likely to shift the planted area to corn from other crops, including wheat and rice, creating food security problems.