March 7, 2022

 

China's winter wheat crop could be worst in history

 

 

Tang Renjian, China's Minister of Agriculture and Rural Affairs, said the country's winter wheat crop could be the worst in history as rare heavy rainfall in 2021 delayed the planting of about one-third of the normal wheat acreage, Reuters reported.

 

Tang said a survey of the winter wheat crop done before the beginning of winter found that the amount of first- and second-grade crop was lower by more than 20 percentage points.

 

The minister's comments highlight concern about China's grain supply at the same time as Russia's invasion into Ukraine. The conflict has pushed wheat prices to soar to 14 year highs as both Russia and Ukraine account for nearly 30% of worldwide wheat exports.

 

Tang said China can ensure a bumper summer harvest thanks to strong policy, technical support, and improving crop conditions.

China's wheat prices jumped to record highs on existing domestic supply worries and the Ukraine crisis.

 

Tang's comments follows China's refocusing on food security, a policy of the central leadership that has been notable since the COVID-19 pandemic.

 

China's the National Development and Reform Commission's (NDRC) said the country's grain supply remains tight, even though there has been good harvests in the past few years.

 

The NDRC, China's state planner said the country will ensure that grain acreage for 2022 stays above 117.33 million hectares (289.93 million acres).

 

The NRDC also said China will boost soybean production and other oilseed crops, restating top policy priorities in the agriculture industry, as well as increase corn output.

 

China's corn import reached record highs in 2021 due to rising prices domestically and low inventories.

 

In another report, China's finance ministry said it will allocate CNY 41.639 billion (~US$6.59 billion; CNY 1 = US$0.16) in subsidies this year for farm insurance premiums. This is 30.8% higher compared to 2021.

 

Premier Li Keqiang said China will ensure major agricultural product supplies in 2022, which include grains.

 

Li said the country will stop attempts to repurpose cropland for anything other than agriculture and specifically grain production, as well as revitalise the seed industry at a faster pace.

 

Li also said the country will better regulate domestic swine output and ensure the production and supply of livestock, poultry and aquatic products and vegetables.

 

-      Reuters