April 21, 2011

China could face corn supply shortage in the next decade

China could face a corn supply shortage due to soaring demand from animal feed and sweetener sectors in the 10 years to 2020, an official from state grain trader Cofco Group said on Wednesday (Apr 20).

Pork demand will likely rise 26%-29% by 2020 compared with 2009 levels, to about 61-63 million tonnes, while milk demand in 2020 will be more than double the 2009 volume, indicating huge demand for corn, the main commodity used in animal feed, said Fu Ruliang, general manager of Cofco's strategy research department.

"The most important issue in China's grain production in the future is if we can ensure supply-demand balance of corn," he said. Corn is the biggest problem the government needs to face in regulating grain markets, he said.