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China now has over 70,000 agricultural product processing enterprises above designated size nationwide
The 18th China Agricultural Products Processing Industry Investment and Trade Fair will be held from September 6 to 8 in Zhumadian City, Henan Province. Since 1998, the Ministry of Agriculture and Henan Province have jointly held 17 sessions of the fair, with more than 3,700 key investment and construction projects signed, and contract value
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Substandard Grain Enterprises Receiving Subsidies Must Be Thoroughly Investigated
In recent years, consecutive years of bumper grain harvests have been a cause for celebration, but the phenomena of high grain procurement volumes and high stockpiles alongside low profit margins and low operating rates among processing enterprises have also occurred from time to time. In response to this situation, Heilongjiang specially introduced a subsidy policy this year, but unexpectedly
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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>
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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
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There are 75,700 agricultural product processing enterprises above designated size nationwide, and it has already become a sunrise industry
Zhumadian, Sept 7 (China News Service) (Wu Yang, Cao Chunqiang) - Reporters learned from the organizing committee of the currently convening 18th China Agricultural Product Processing Industry Investment and Trade Fair that by the end of 2014, there were 75,700 agricultural product processing enterprises above designated size nationwide, completing main business revenue of 1.848 billion yuan.
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High-quality wheat prices decline amid falling demand from flour milling enterprises
Currently, the purchase price paid by grain brokers for Gaoyou 2018 is 1.30 yuan/jin, and the purchase price for Shiluan 02-1 is 1.36 yuan/jin, both down by 0.05-0.07 yuan/jin compared with the purchase prices when new wheat came onto the market in June and July, said Yang Xinshe, a wheat trader in Baixiang County, Hebei Province. Since new wheat came onto the market this year,
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New Milk Powder Policy Targets Domestic Dairy Enterprises; Companies Call on Regulators to Hold the Bowl Steady
Only half a month remains before the official implementation of the new milk powder policy. During the public consultation period for the "Administrative Measures for the Registration of Infant Formula Milk Powder Product Formulas (Trial)" (hereinafter referred to as the opinion), reports appeared in the newspapers that more than a thousand milk powder brands will exit the market. This policy, called the strictest in history,
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Four Major Changes Facing Chinese Agricultural Enterprises, Explained by Agriculture Ministry Official
BEIJING, Sept. 19 (Xinhua) -- Zhang Hongyu, Director of the Department of Rural Economic System and Operation Management of China's Ministry of Agriculture, said that new features have emerged in the development situation of Chinese agricultural enterprises, which face four major changes. Zhang Hongyu spoke on Sept. 19 at the 2015 International Agricultural Business Brand Development
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Ministry of Agriculture Notice: Suspension of All Product Purchase Subsidy Eligibility for Five Enterprises
Agricultural Machinery Production [2015] No. 120 To the agricultural machinery (agriculture, agriculture and animal husbandry) bureaus (departments, commissions, offices) of all provinces, autonomous regions, municipalities directly under the Central Government, and municipalities with independent planning status; the Agriculture Bureau of the Xinjiang Production and Construction Corps; the Heilongjiang Provincial General Bureau of State Farms; and the Guangdong Provincial General Bureau of State Farms: Recently, our department conducted a preliminary investigation based on a report from the Anhui Provincial Agricultural Machinery Bureau.
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How can traditional agricultural enterprises get on the internet express train to seek development
Not tall in stature and dark-skinned, Xu Jinyong gained a romantic nickname last year, "Rose Prince." He was 6th in last year's China Youth Agricultural Industry Entrepreneurship and Wealth Creation Competition, and he also owns over a hundred mu of rose plantation. This year, as an outstanding representative of agricultural entrepreneurship,
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