The rapeseed crop Zhu Yingqing harvested three years ago is still in his barn. The 46-year-old farmer from Duji township in Hefei, Anhui province, last planted in the autumn of 2011, and harvested seeds the following summer. The seeds were kept by the family to produce vegetable oil for daily use. “Nobody is buying now, and we have nowhere to sell,” said Zhu, who cultivates about 2 hectares of farmland. Private purchasers have stopped buying, and there are no purchase orders from State-owned grain enterprises, he said. Meanwhile, the input-output ratio of rapeseeds has fallen below other crops, even basic food crops such as wheat…Full Article: China Daily Oct 2015

Key Points

  • Rapeseed is labor-intensive crop as farmers need to grow seedlings first and transplant them to the farmland.
  • On 7 August 2015, China’s State Administration of Grain (SAG) stated that its top nine provincial planting regions only bought 1.02 million MTs of rapeseed as of 5 August 2015, a decline from the roughly 2 million MTs typically purchased by August.
  • According to a market research analyst, in 2015, rapeseed (e.g. canola) import prices totaled approximately CNY 3,400 (~US$536) per MT while domestically produced rapeseed was valued at CNY 3,500 (US$546). Major Chinese rapeseed importers include Fujian, Guangdong, and Guangxi Zhuang region.
  • From 2008 to 2014, rapeseed production in Anhui province declined from 670,000 ha to 551,000 ha, or roughly 1.4 million MTs to 1.27 million MTs.

ChinaAg Comments

  • In 2015, China withdrew price subsidy support for its canola/rapeseed farmers just after the planting season.
  • From 2013 to 2014, mainland Chinese imports of Canadian canola/rapeseed increased from 2.7 million MTs to 4.5 million MTs.
  • In 2014, Chinese subsidized domestic prices of canola were above CNY 5,100 (~US$828) per MT, which is 40% higher than foreign imports (including shipping and taxes).
  • In May 2013, a press article noted that Chinese canola importers were looking to increase imports owing to lower foreign prices vis-à-vis domestically subsidized canola.
  • In April 2013, Canada, the world’s largest canola producer, was granted increased access to crushing plants in China. As a result, Canada could export canola to 11 Chinese crushing facilities (capacity of 5.5 million metric tons).
  • In 2013, China produced approximately 14.4 million MTs of rapeseed. Hubei was the top producer at 2.5 million MTs of roughly 17% of total output. Sichuan was the second largest producer at 2.24 million MTs.
  • China’s canola (rapeseed) production primarily takes places in the center of the country. In 2011, Hubei produced 2.2 million MTs of canola, while Sichuan produced 2.1 million MTs and Hunan produced 1.8 million MTs (total country output was 13.4 million MTs).

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