-
Only when pro-farmer policies are publicized to every household can farmers truly benefit
Nowadays, farmers are already very familiar with the grain subsidy policy, but when it comes to pro-farmer policies for vegetables, aquaculture, livestock and poultry, forestry and fruit, and agricultural product processing, they either have only a partial understanding or have never even heard of them. This is because these subsidy policies require a certain scale of production and investment in production facilities
-
Express delivery and e-commerce reach the countryside: rural consumption willingness rises sharply
In the first half of 2015, the consumer confidence index in China's first- and second-tier cities declined relatively quickly, while the confidence index in rural areas climbed 2 points to 106 points. Despite the decline in employment expectations, rural consumption willingness showed a relatively large increase. Recently, the world-renowned market research
-
Soybean Imports Under Pressure: Cost Rises by 3 Million Yuan per Vessel
On August 11, news that Russia would lower tariffs on related agricultural products roiled the commodities market. Coincidentally, the People's Bank of China's sharp downward revision of the RMB central parity rate during the same period also gave some agricultural products a different performance. Zhuochuang Information told a Securities Daily reporter that, affected by the RMB depreciation, Chicago soybean futures surged 3.5% on Monday before plunging 2.6% on Tuesday. Apart from the impact on the futures market, soybean imports are also expected to be "badly hurt" later on. As the world's largest buyer of soybeans, China has had an import dependence rate for soybeans above 50% over the past 15 years; especially in the past six years, China's foreign dependence on soybeans has exceeded 80%, and in 2014 the foreign dependence rate was around 86%. Without considering foreign exchange arbitrage, if domestic soybean traders import soybeans at the latest exchange rate, the cost per vessel increases by about 3 million yuan. Although importing enterprises can use foreign exchange arbitrage tools to reduce exchange losses, if the RMB continues to depreciate, enterprises' import costs will face the risk of a sharp rise. <p> </p> <p> On August 11, news that Russia would lower tariffs on related agricultural products roiled the commodities market.</p> <p> Coincidentally, the People's Bank of China's sharp downward revision of the RMB central parity rate during the same period also gave some agricultural products a different performance. Zhuochuang Information told a Securities Daily reporter that, affected by the RMB depreciation, Chicago soybean futures surged 3.5% on Monday before plunging 2.6% on Tuesday. Apart from the impact on the futures market, soybean imports are also expected to be “badly hurt” later on. As the world's largest buyer of soybeans, China has had an import dependence rate for soybeans above 50% over the past 15 years; especially in the past six years, China's foreign dependence on soybeans has exceeded 80%, and in 2014 the foreign dependence rate was around 86%. Without considering foreign exchange arbitrage, if domestic soybean traders import soybeans at the latest exchange rate, the cost per vessel increases by about 3 million yuan. Although importing enterprises can use foreign exchange arbitrage tools to reduce exchange losses, if the RMB continues to depreciate, enterprises' import costs will face the risk of a sharp rise.</p> <p> Soybean imports remain at a high level</p> <p> A Securities Daily reporter learned from Zhuochuang Information that Russia has stated that, in order to honor its commitments to the World Trade Organization (WTO), it will continue to gradually lower export tariffs on major oilseeds, starting from September 1, 2015. The soybean export tariff will drop to zero, and the rapeseed export tariff will drop to 6.5%, but no lower than 11.4 euros per ton. The sunflower seed export tariff will drop to 9.88%, but no lower than 14.81 euros per ton.</p> <p> In this regard, Zhuochuang Information believes this may change the pattern of China's sources for imported soybeans.</p> <p> A Securities Daily reporter checked data from the General Administration of Customs. Looking at import volume data, soybean imports showed a surge in July. The data shows that 9.5 million tons of soybeans were imported in July, while from January to July cumulative imports reached 44.66 million tons, with import volume up 7.1% year on year and value down 19.7% year on year.</p> <p> Checking data from other months so far this year shows that although soybean import data fluctuated repeatedly in the first half of this year, with differing degrees of year-on-year increases and decreases, the July import volume increased noticeably when the data are ranked.</p> <p> Separately, media reports said the surge in soybean imports was mainly because South American soybeans were cheap, stimulating increased purchasing demand from Chinese buyers. The China National Grain and Oils Information Center forecasts that soybean imports in August and September will total 13 million tons, higher than 11.06 million tons in the same period last year.</p> <p> Corresponding to the surge in imports is the continuous shrinking of the domestic soybean market. The China National Grain and Oils Information Center expects China's soybean output next year to fall to 11 million tons, below this year's 12.15 million tons.</p> <p> While news of Russia's tariff cut is still echoing, the RMB depreciation has added another layer of meaning to soybean import and export business. “The RMB has depreciated continuously for two days by a relatively large margin, which is a major positive for foreign trade enterprises. In recent years, the RMB has kept appreciating, while international market demand has been sluggish, dealing a relatively large blow to China's exports. In July this year, exports fell 8.3% year on year. After the RMB depreciation, the price advantage of China's exported goods will be somewhat strengthened, which is conducive to improving the performance of foreign trade enterprises. In fact, the main purpose of this central bank-led RMB depreciation is to promote exports.” Guo Fanli, research director at China Venture Consulting, explained to Securities Daily. Specifically for agricultural enterprises, Guo Fanli believes enterprises should actively raise the added value of their products and develop mid- to high-end business. This RMB depreciation is a good opportunity for China's agricultural processing import and export enterprises to rebuild their brand image. Agricultural processing import and export enterprises can export some mid- to high-end products, and because of the RMB depreciation, these mid- to high-end products are expected to be welcomed by the market for their relatively high cost-performance ratio. Once foreign markets have relatively high recognition of China's exported mid- to high-end products, even if the RMB appreciates in the future, it will not have a relatively large impact on agricultural processing import and export business.</p> <p> Some agricultural analysts also explained in interviews with Securities Daily that the current agricultural production model determines that domestic soybeans regaining market share will not happen overnight.</p> <p> The phenomenon of “concentrated arrival at ports” will continue</p> <p> Changes in the soybean market structure have also given the current market clear characteristics. A research report from Guotai Junan shows that China's soybean imports continue to show the phenomenon of “concentrated arrival at ports”; therefore, China's soybean imports are expected to fall month on month in August, but in absolute terms they are still expected to remain in a high range.</p> <p> Because China's soybean imports surged in July, setting the highest monthly import volume ever recorded. Guotai Junan believes that in the first seven months of 2015, there were some keywords to follow in global soybean trade: China's soybean imports will fall month on month in August, with import volume estimated at around 8 million to 8.5 million tons; China's soybean import volume once again set a record high for the same period in history, and China's soybean imports are expected to gradually decline in August.</p> <p> Now, with changes in Russia's soybean export tariff policy, the market structure may also change. Zhuochuang Information believes that China's main soybean importing countries are currently the United States, Brazil and Argentina. Looking at import data from the first half of the year, the three countries accounted for 97% of import volume, while Russia accounted for only 0.72%. However, affected by Russia's soybean exports soon facing zero tariffs, “plus the fact that in recent years farmers in Northeast China have tended to go to Russia to grow soybeans, it is expected that China's soybean imports from Russia will increase somewhat later on.”</p> <p> </p>
-
There is still a long way to go in building grain brands
On the whole, China's grain brand building is still very backward. Grain brands have not formed a joint force, and there are few brands with international influence. The grain industry is entering an era of large-scale circulation and large-scale integration. Cultivating large grain merchants requires great boldness. China should support the development of modern
-
Straw burning control must rely on market mechanisms
Every summer harvest, all localities must face the major test of straw burning. This year, although all localities have imposed strict bans on burning, some places still have thick smoke billowing, with PM2.5 indices off the charts. Meteorological satellite monitoring shows that in June this year, straw burning in the country's main summer grain harvest areas
-
How can agricultural wholesale markets embrace e-commerce?
Currently, more than 80% of China's agricultural products each year circulate through a network of about 4,200 agricultural product wholesale markets across the country. Agricultural wholesale markets are both indispensable infrastructure in the agricultural product circulation chain and vested interests. However, fresh produce e-commerce
-
Prices of popular Chinese medicinal herbs such as angelica and gastrodia drop sharply
Due to blindly expanded cultivation, output of many previously hot-selling varieties such as angelica and gastrodia is severely oversupplied. Not only have lofty items like bird's nest and cordyceps been consigned to the cold palace by the market, but "everyone's darling" Chinese medicinal herbs have also begun to fall in price and attract few buyers. The reporter learned that, including Salvia miltiorrhiza,
-
Agricultural modernization for whom? The purpose of development is worth pondering
I am very glad to have such an opportunity to exchange views with everyone. Listening to the speeches of Teacher Tang Zilai, Dean Li Zhenyu and Dean Zhang Shangwu felt very warm. Just now Teacher Tang conducted a small survey and found that very few people here were actually born and raised in rural areas, and very few have even spent a
-
E-commerce is deep water with many risks; enter with caution
This Monday, I heard from a friend that a certain water-soluble fertilizer factory wants to build an e-commerce platform. Beyond my surprise, I also started pondering: why would such a small fertilizer enterprise also want to build an agricultural materials e-commerce platform? Could it be that this boss made the decision on a whim? Of course, I am not
-
A Sober Reflection Amid the Rural E-commerce Boom: A Blue Ocean Is Not Everywhere
Against the backdrop of the "Internet Plus" era, traditional agriculture is being redefined. Spurred by policy support, industrial and commercial capital eyeing this blue ocean has been flowing into the countryside, especially after large companies such as Lenovo and Evergrande made cross-sector forays, making agriculture a red-hot investment field.
条件筛选