China is to shake up the state monopoly on production and sale of table salt, dismantling a system that has been in place for more than 2,000 years. Salt producers will be able to determine their own production scale and market salt directly, rather than selling only to state distributors, while price controls will be scraped from 2017, according to a statement by the State Council on Thursday [5 May 2016]. China’s state control over the salt sector reportedly began around the seventh century BC…Full Article: May 2016

Key Point

  • China will not permit the establishment of new salt producers/wholesalers, but would instead encourage existing companies to streamline (i.e. merges and acquisitions) with the aid of private capital/investment. The government may intervene if domestic prices become unstable.

ChinaAg Comments

  • In January 2016, Guangdong Salting Group opened a new salt production and processing facility (capacity of 40,000 MTs per year). The new facility will reportedly produce “high-end” salt including Aussie lake salt and low sodium sea salt.
  • China is the largest producer of salt in the world (~25% of global output), and had an estimated salt output/reserves of 71 million MTs in 2014.

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