December 26, 2007

China reaps bumper grain harvest for four consecutive years

China's grain output growth rate has exceeded 6 percent for four consecutive years since 2004, with total produce of more than 500 billion kilogrammes.

According to China Agricultural Working Conference, the Ministry of Agriculture invested RMB12.4 billion (US$1.7 billion) in the construction of agricultural industry in 2007, surging by 42.9 percent year-on-year, with output of sugar crops, vegetables and fruits hitting new record high.

Meanwhile, China's grain import in the first 10 months has declined in volume due to the bumper harvest and hike in international grain price, customs statistics reported.

China imported a total of 1.3 million tonnes of grain produce, including wheat, corn and grain powder in the first ten months of the year with a total value of US$420 million, down 58.6 percent and 39.4 percent respectively on-year.

International grain price surged in 2007 due to an large gap between grain supply and demand. The world's grain production reduced to 1.97 billion tonnes in 2006 while world grain consumption increased to 2.04 billion tonnes, causing a worldwide reduction in grain inventory and rising grain prices.

China's bumper harvests helped to close the gap between grain supply and demand.