April 11, 2007

China to increase corn output to 150 million tonnes in 2010

China, the world's second-biggest corn producer, has announced it aims to boost corn production to 150 million tonnes in 2010, compared to current output of 144 million tonnes to meet booming demand.

To do so, the country would aim to plant at least 26.67 million hectares of corn in 2010, said Chen Mengshan, director of the Planting Management Bureau with the Ministry of Agriculture.

The acreage would be achieved by encouraging farmers to plant high-yield corn breeds, improving planting techniques, more use of fertilizers and modern technology.

Output per hectare would be boosted from 5.25 tonnes currently to 5.63 tones by 2010, a 7-percent increase. Still, this pales in comparison to the US, where output is 9 tonnes per hectare.

China's corn consumption has risen rapidly in recent years, boosted by increasing demand for livestock and industrial use. Corn prices have risen sharply since 2006 as more were bought up for ethanol production. 

China's corn acreage is expected to increase 1.1 percent this year to 27.35 million hectares, according to the China National Grain and Oils Information Centre. The centre estimated that the nation's annual corn consumption for 2006-2007 would reach 144.5 million tonnes, meaning a 500,000-tonne deficit.