In 2014, domestic supply of agricultural products was generally ample

In 2014, international bulk agricultural product prices continued the previous year's downward trend, while domestic market supply was generally ample, prices fell more often than they rose, and imports continued to grow.

Grain prices rose slightly amid stability. Supported by the minimum purchase price and temporary storage policies, domestic grain prices continued to rise slightly amid stability this year. From January to November, the average domestic market wholesale price of the three grains (rice, wheat, corn) was 130.23 yuan per 100 jin, up 1.92% year on year.

Cotton, oil and sugar prices continued to fall. Affected by lower international cotton prices, inventory pressure and weak demand for raw materials from textile enterprises, domestic cotton prices fell sharply. From January to November, the average sales price of China Cotton Price Index (CCIndex) 3128B grade cotton was 17,457 yuan/ton, down 9.8% overall year on year. Affected by factors such as ample international market supply and lower sea freight rates caused by lower crude oil prices, domestic edible oil prices fluctuated downward. From January to November, the ex-factory price of grade IV rapeseed oil in Hubei fell 26.9% year on year, and the ex-factory price of grade I peanut oil in Shandong fell 24.6% year on year. Affected by pressure from imported sugar and high domestic inventories, domestic sugar prices had continued to fall since mid-2012. The average sugar price in the 2013/2014 crushing season was 4,700 yuan per ton, down 14.8% year on year and substantially below the sugar production cost of 5,200 yuan per ton.

Pork prices overall remained lower than the previous year. Phased supply pressure, plus consumption below expectations, led pork prices to generally decline since 2011. In the first half of 2014, they continued to show a relatively rapid decline, after which, affected by factors such as the frozen pork reserve policy, they rebounded for five consecutive months, but the overall level for the full year was still lower than last year. From January to November, the average domestic pork market price was 22.44 yuan per kg, down 7.5% year on year; the live pig price was 13.44 yuan per kg, down 10.3% year on year.

Poultry meat and poultry egg prices rose considerably. Poultry meat and poultry egg prices first fell and then rose. In the first quarter, they declined due to the H7N9 influenza outbreak and seasonal factors. From April, they began to recover, driven by breeding costs and consumption, with poultry egg and poultry meat prices reaching historic highs in September and October respectively. From January to November, the average price of dressed chicken was 18.13 yuan per kg, up 6.4% year on year; the average price of poultry eggs was 10.77 yuan per kg, up 8.9% year on year.

Beef, mutton and milk prices ran at high levels. Supply remained tight, and prices continued to run at high levels. From January to November, the average market prices of beef and mutton were 63.23 yuan and 65.43 yuan per kg respectively, up 8.2% and 6.3% year on year respectively. Raw milk purchase prices generally fell back from high levels, but were still higher than the same period last year. From January to November, the average raw milk purchase price in major producing provinces was 4.08 yuan per kg, up 14.5% year on year.

Aquatic product prices fell compared with the previous year. From January to November, the average price of 30 key monitored aquatic products was 15.44 yuan per kg, down 0.63% year on year.

Vegetable prices were overall lower than the same period last year. Meteorological conditions were relatively favorable, the overall vegetable production situation was good, and prices were slightly lower than the same period last year. From January to November, the average wholesale price of 28 vegetables key monitored by the Ministry of Agriculture fell 1.36% year on year.

Fruit prices rose significantly compared with the previous year. From January to November, the average wholesale price of 7 major fruits key monitored by the Ministry of Agriculture rose 22.4% year on year.