Dec., 16, 2015, Mumbai, India: Market Reports on China presents the report, on “Market Research Report on China Corn Industry [2015-2019]”. In recent years, the demand for corn in China stays at a high level as farming and industrial demand increases.
According to official statistics, Chinas corn yield in 2014 was 215.65 million tons, decreasing about 1.3% compared with last year. Corn has become Chinas most important variety of food crop. As regard to corn consumption, only about one third is eaten directly while the rest is used as fodder or industrial material. Macro-economic situation exerts greater influence on corn than on such rations as wheat and rice. In recent years, the demand for corn in China stays at a high level as farming and industrial demand increases.
Most of corn products are primary products whose additional value is low. Another problem in corn processing industry is the excess capacity of primary products especially starch and edible alcohol as well as low operating rate. Besides, as the competition among small enterprises is fierce, the whole industry awaits further integration.
In recent years, with the implementation of the minimum purchase price policy for grain and the increase in planting cost, corn price has gone up gradually. As the market price of corn kept rising in 2009, the corn acreage expanded in 2010.
Chinas corn import increased from 1,000 tons in 2003 to 5.208 million tons in 2012 i.e. increased by over 5,000 times in a decade, which was rarely seen even in the whole world. China remained the net exporter of corn before 2010. But since 2009, as corn yield dropped and domestic demand for corn increased as a result of the drought, China fastened its corn import and has become the net importer of corn since 2010. In 2012, 5.2074 million tons of corn was imported into China with a year-on-year growth of 197.08%, among which 5.1133 came from the US, increasing 20.3% year on year. During the period of 2013-2014, corn import declined continuously due to the publication of Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products by the Ministry of Commerce of the Peoples Republic of China and the National Development and Reform Commission which states that during the period of 2014-2015, the import quotas of corn shall be 7.2 million tons per year, among which only 40% is allocated to non state-owned enterprises and the maximum tariff of import outside quota quantities can be 65%.
Corn price in domestic market is far higher than that in international market. In 2014, due to the implementation of such controls as genetically modified crops regulation and sales quota, 2.599 million tons of corn were imported into China, increasing 20.4% year on year despite the expanded gap between domestic and international price which was larger than the above-mentioned 65%. However, corn substitutes like sorghum and barley grew in import, totaling 11.19 million tons, increasing by 7.78 million tons i.e. 2.3 times year on year.
In 2014, China imported 5.42 million tons of distillers dried grains with soluble (DDGs) (a year-on-year growth of 35.3%) and 8.67 million tons of potatoes especially dry cassava (a year-on-year growth of 18.4%) which totaled over 14 million tons and partially replaced deep-processed products of corn. It is estimated that the big increase in corn substitute import in 2014 at least leads to a new stock of 10 million tons of local corn. If major exporters like Australia (in 2014, 71.6% of barley were imported from Australia) and the US (in 2014, 93.8% of sorghum were imported from the US) expand cultivation substantially in the coming year, the import of sorghum and barley substitutes will further grow, which increases the pressure on corn storage capacity.
With economic development and improvements in living standards, the demand for meat, egg and milk in China will keep increasing, so does the demand for grains used as fodder. However, due to the deepening urbanization and low gains of planting industry, more and more rural labor force turn to city for jobs instead of engaging in agriculture. Therefore China is expected to remain the largest grain importer in the future.
In the long term, the demand for corn enjoys good prospects of continuous growth. However, as the room for growth of corn yield is limited, the demand gap will expand further. Therefore, it is inevitable for China to increase its corn import. The annual import of corn and its substitutes is expected to surpass 10 million tons in the next few years. Hence the great investment opportunity in Chinese market for grain growers and trade companies.
Readers can get at least the following information through this report:
-corn production in China
-Chinese policy supporting corn growing
-Chinese policy for imported corn
-demand in corn market in China
-development of corn processing industry in China
-major enterprises in corn processing industry in China
-corn import and export in China
-price tendency of corn in Chinese market
-outlook of corn market in China
The author suggests the following groups of people purchase this report:
-enterprises providing agricultural means of production
-corn processing companies
-corn importer and exporter
-investors/research institutions interested in corn market in China
Table of Contents
1 Analysis of Corn Planting in China, 2010-2014
1.1 Overview of Corn Planting in China
1.1.1 Distribution of Planting Areas
1.1.2 Corn Yield, 2010-2014
1.1.3 Characteristic of Corn Production in China
2 Import and Export of Corn in China, 2010-2014
2.1 Import and Export Policy
2.2 Corn Import in China, 2010-2014
2.1.1 Import Volume
To view a full Executive Summary and Table of Contents, please visit:http://www.marketreportsonchina.com/food-beverages-market-research-reports-1195/research-china-corn.html
About Author Bio: Sarah Davis is working with MarketReportsonChina which is a portal where you can access thousands of reports on China starting from Aeronautics to Zinc (A-Z). The website provides market reports on different sectors.
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