Chen Zhuo, a farmer from Yushu City, Jilin Province, had a good corn harvest, but he is worried about what to grow next year. “There are too many people growing corn these days, so prices are falling,” Chen said. “I don’t know whether I can turn a profit if I stick with corn next year.” China’s corn industry is experiencing a surplus crisis after years of preferential policies caused rapid expansion and excessive corn supply. China began buying corn in the northeastern region for state reserves in 2008 to protect local farmers from the global financial crisis. For years, the policy kept corn prices stable and high…Full Article: Xinhua Finance Oct 2015
- As of 2015, China’s northeast (e.g. Heilongjiang, Liaoning, Jilin and Inner Mongolia) has approximately 160 million MTs of corn in storage, or roughly 78% of China’s total corn reserves. Corn farmers in this part of the country utilize on average 434 kg of fertilizer per hectare (ha) or roughly 1.93 times above China’s national safety limit.
- In September 2015, China decreased its corn purchasing price for state reserves by 10.7%, marking it the first decline since price support measures would introduced in 2008.
- From 2003 to 2013, corn production in China’s northeast (e.g. provinces of Heilongjiang, Liaoning, and Jilin) increased from 6.3 million ha to 11 million ha.
- From 2012 to 2013, Chinese corn production increased from 205 million MTs to 218 MTs. In 2013, Heilongjiang produced 32 million MTs of corn, accounting for 15% of China’s total output. Jilin produced 27 million MTs or roughly 13% of the country’s corn output.