China will increase the size of its granaries as its grain output rises and also take steps to reduce losses from substandard grain storage facilities, as part of the ongoing efforts to bolster food security. Granaries to get a facelift as grain output rises. During a trip to Zhuzhou, Hunan province, on Friday, Premier Li Keqiang urged China Grain Reserves Corp, the country’s largest and most wide-ranging grain storage and transportation company, to work on more options to improve its rice rotation mechanism and reduce storage of expired rice…Full Article: China Daily July 2014

Key Points

  • According to the article, from 2014 to 2015, the Chinese government intends to construct storage facilities with a capacity to hold 50 million MTs of grain, primarily in northeastern and southern China
  • According to an Sinograin employee (Zhuzhou branch, Hunan province), in 2012, Sinograin spent CNY 7 million (~US$1.1 million) to constructing granaries with a 20,000 MTs storage capacity.

ChinaAg Comments

  • In March 2014, the Director of China’s State Administration of Grain noted the country loses ~35 million tons of grains are lost due to poor storage, transportation and processing methods, while remaining ~15 million tons are wasted by the consumer themselves (~50 million MTs annually).
  • In February 2013, the grain director noted that approximately 35 million tons of grain is wasted annually in China, with 20 million tons being lost due to poor storage by farmers, 7.5 million tons wasted from storage/transportation, and 6.5 million tons through poor processing procedures.
  • Chinese rice production is spread out across the country, with highest concentration located around the Yangtze River. In 2011, Hunan province produced 25.7 million MTs of rice, which accounted for approximately 13% of Chinese output. The next largest producers were Heilongjiang province at 20.6 million MTs or 10% of Chinese output, and Jiangxi province at 19.5 million MTs (also 10%).

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