August 31, 2007

China's Jilin province unlikely to see large grain output cut
 

A drought in Jilin province, China's largest corn producing region, is unlikely to cause a large reduction in grain output this year, the province's grain administration said Friday (Aug 31).

Increased grain acreage, higher yields and larger investment will help offset the impact of the worst-ever drought, according to an article published on the administration's website.

Grain output in Jilin province would not fall much or may even be about the same level as last year if the weather helps toward the harvest season, it said.

Jilin's corn output accounts for 15 percent of China's total corn output. It also grows some rice.

The region's grain acreage totals 4.57 million hectares, up 6,667 hectares from last year. Of the amount, corn acreage totals 3.01 million hectares, up 3.7 percent on- year, and rice acreage 772,000 hectares, up 4 percent, it said.

China's government is concerned about reduced autumn grain output due to continuing drought and floods, as rising food prices have already pushed inflation above target.

National Development and Reform Commission Chairman Ma Kai told the National People's Congress Wednesday that the country's autumn harvest faces a "severe situation."

In an article published on China Corn Network's website, the Jilin Grain and Oils Information Centre said it expects corn prices to remain high in 2007 and 2008 due to strong demand from the feed meal sector.

The information centre also cited Vice Agricultural Minister Wei Chaoan as saying that China's corn output is likely to reach 147 million tonnes in 2007, down from the latest official forecast of 149 million tonnes.