China plans to cut its corn acreage by close to 670,000 hectares in 2016, an official with the Ministry of Agriculture said on Thursday [19 November 2015], as the country comes under mounting pressure to reduce its corn stocks. Pan Weibo, deputy director with the Department of Crop Production under the ministry, said the country will promote the growing of silage corn, beans, other coarse grains and forage grass in parts of 13 provincial areas to replace the corn acreage…Full Article: Nov 2015

Key Points

  • According the Deputy Director of China’s Crop Production Department (under the auspices of the Ministry of Agriculture), the major corn producing regions of Liaoning, Jilin and Heilongjiang will see the largest declines in production area, while Shanxi, Shaanxi, Gansu, Guizhou and Yunnan will also be affected somewhat.
  • In November 2015, China announced plans to cut its corn production by 3.3 million hectares across 13 provinces/regions by the end of 2020. This decline in area will cut production by approximately 25 million MTs.
  • In 2014, China cultivated corn on 37 million ha. This figure was expected to increase by 1.9% in 2015.

ChinaAg Comments

  • As of 2015, China’s northeast (e.g. Heilongjiang, Liaoning, Jilin and Inner Mongolia) had approximately 160 million MTs of corn in storage, or roughly 78% of China’s total corn reserves.
  • 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 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.

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