July 2, 2007

China grain consumption may top 515 million tonnes this year
 

China's grain consumption is expected to total 515 million tonnes this year, up from 505 million-510 million tonnes last year amid ample stocks, said Lu Jingbo, an official with the State Grain Administration Monday (Jul 2).

Wheat production in the nine major producing provinces, which account for 85 percent of the total output, is expected to rise by nearly 5 million tonnes this year and the country's total production will slightly surpass demand, Lu said.

"Corn production this year will probably match or surpass last year's, while the soybean supply and demand gap will enlarge further," he said at a two-day industry conference.

Rice paddy production will continue to meet domestic demand, he added.

Lu also expressed concerns over the negative impact of climate change on grains production, but did not elaborate.

"Grain prices will probably go down in the coming months, thanks to the harvest of wheat and rice," he said.

China's grain output exceeded 490 million tonnes in 2006, and the Ministry of Agriculture said in June that output is likely to grow for a fourth straight year in 2007.