March 8, 2016


China's grain production on continual increase but yet to fulfill demand


China's grain output had rose to its twelfth straight annual increase in 2015, but the volume still falls short of fulfilling demand.


Additionally, the government intends to cut down its corn inventory and raise bean supply.

Corn has rocketed to 93 million tonnes in 2016, a result of government-subsidised buying prices implemented 10 years ago.


According to Han Changfu, the Chinese agriculture minister, more corn could be used for livestock feed as well as crop rotation in order to mitigate the oversupply of corn.


In 2015, China's grain output reached 620 million tonnes, a bigger volume than 2014's 607 million tonnes. The supply - excluding imports - was 25 million tonnes less than what was needed, the South China Morning Post reported.


In the same period, grain imports increased 20% from 2014 to 120 million tonnes last year. Grain imports arrived at the Chinese mainland in huge volumes due to a lack of certain products coupled with cheaper global prices.


The rising demand for grains is attributed to the growing Chinese population and urbanisation, Han explained.


During China's 13th five-year plan, the country will not aim for a continuous growth of grain output, but instead, a larger capacity.


While grain production remains an important issue, agricultural food safety will also be improved, said Han. He also called on local dairy producers to improve product quality.