China's agricultural trade deficit and price gap have become the norm
Xinhua News Agency, Beijing, November 15 (Reporter Wang Yu) Although China's grain production has achieved 11 consecutive years of growth since 2004, agricultural trade has correspondingly shown a "double norm" phenomenon of a normalized deficit and a normalized price inversion. This is what the reporter learned from the 2015 (
Xinhua News Agency, Beijing, November 15 (Reporter Wang Yu) Although China's grain production has achieved “11 consecutive years of growth” since 2004, agricultural trade has correspondingly shown a “double norm” phenomenon of a normalized deficit and a normalized price inversion.
This is what the reporter learned from the 2015 (Third) China Grain and Food Security Strategy Summit held here.
According to Ye Xingqing, Director of the Rural Department of the Development Research Center of the State Council, who spoke at the summit, with the increase in grain imports, China's agricultural trade has now run a deficit for 11 consecutive years, and the scale of the deficit has gradually expanded, so the agricultural trade deficit will become the norm.
Data show that last year China's grain imports exceeded 100 million tons for the first time. In recent years, while the trade deficit in livestock products has expanded rapidly, China's three major grain varieties - rice, wheat and corn - have also recorded net imports for 4 consecutive years, while imports of corn substitutes such as sorghum and DDGS (distillers dried grains with solubles) have also grown substantially in recent years.
Experts believe that the agricultural trade deficit is related to the inversion of domestic and international prices. Affected by factors such as the decline in international market prices of bulk agricultural products in recent years and the continued high levels of domestic minimum purchase prices and temporary storage prices, the inversion of domestic and international agricultural product prices has become increasingly obvious.
“Judging from the natural endowments and stage of development of China's agricultural production, the cost of China's agricultural products will remain on an upward track in the future, and in the medium to long term the price inversion will become the norm.” Ye Xingqing said.
The “2015 (Third) China Grain and Food Security Strategy Summit” was jointly hosted by the Rural Economy Research Department of the Development Research Center of the State Council and the China Economic Yearbook Press. With the theme of “Transformation of Agricultural Development Mode and Continuation of Growth Momentum,” the summit focused on topics such as how to promote the transformation of the agricultural development mode and the upgrading of momentum.
This is what the reporter learned from the 2015 (Third) China Grain and Food Security Strategy Summit held here.
According to Ye Xingqing, Director of the Rural Department of the Development Research Center of the State Council, who spoke at the summit, with the increase in grain imports, China's agricultural trade has now run a deficit for 11 consecutive years, and the scale of the deficit has gradually expanded, so the agricultural trade deficit will become the norm.
Data show that last year China's grain imports exceeded 100 million tons for the first time. In recent years, while the trade deficit in livestock products has expanded rapidly, China's three major grain varieties - rice, wheat and corn - have also recorded net imports for 4 consecutive years, while imports of corn substitutes such as sorghum and DDGS (distillers dried grains with solubles) have also grown substantially in recent years.
Experts believe that the agricultural trade deficit is related to the inversion of domestic and international prices. Affected by factors such as the decline in international market prices of bulk agricultural products in recent years and the continued high levels of domestic minimum purchase prices and temporary storage prices, the inversion of domestic and international agricultural product prices has become increasingly obvious.
“Judging from the natural endowments and stage of development of China's agricultural production, the cost of China's agricultural products will remain on an upward track in the future, and in the medium to long term the price inversion will become the norm.” Ye Xingqing said.
The “2015 (Third) China Grain and Food Security Strategy Summit” was jointly hosted by the Rural Economy Research Department of the Development Research Center of the State Council and the China Economic Yearbook Press. With the theme of “Transformation of Agricultural Development Mode and Continuation of Growth Momentum,” the summit focused on topics such as how to promote the transformation of the agricultural development mode and the upgrading of momentum.