March 26, 2012

China's corn scarcity to aggravate in the future

The corn deficit of China may rise in the future years due to a rapid demand growth for corn used for processing, a senior cabinet analyst said as reported by state-run Xinhua news agency on Thursday (Mar 22).

Cheng Guoqiang, the deputy director of the executive office of the State Council Development Research Center, the cabinet's think tank, was cited as saying that the balance of supply and demand of corn in China appeared to be reaching a tipping point, with demand now outpacing supply.

Domestic corn-processing demand has risen 40% from 2008 to 45-50 million tonnes annually, he said, speaking at a conference.

Even with a record harvests, China could see a supply deficit because of the swift rise of processing demand, he said at the Bo'ao Forum for Asia.

Cheng said China imported about five million tonnes of corn in 2011, and he projected the figure to rise in 2012. The 2011 figure may include bookings that have not yet been delivered to China, according to Dow Jones Newswires' assessment of customs data.

Other local media reports said Cheng projected that by 2020 China may see a corn deficit of around 20 million tonnes annually.