China’s grain output dipped in 2016 as its planting area shrank and per unit yield edged down, official data showed Thursday [8 December 2016]. National grain output stood at about 616 million tonnes in 2016, down by about 5.2 million tonnes, about 0.8 percent, compared with last year, according to the data released by the National Bureau of Statistics…Full Article: Dec 2016

Key Point

  • From 2015 to 2016, China’s grain cultivation declined by 315,000 ha while its overall yield dropped by 30.7 kg per ha (0.03 MT per ha).

ChinaAg Comments

  • By 2020, China’s wheat production is expected to reach 131.9 million MTs on a cultivation area totaling 24.02 million hectares. The country’s total wheat consumption is also expected to reach 126.3 million MTs.
  • In April 2016, China’s Ministry of Agriculture stated it would increase the country’s soybean production at the expense of corn. Chinese corn farmers Liaoning, Jilin, Heilongjiang, and Inner Mongolia will reportedly receive corn production subsidies. The Ministry of Agriculture also noted that soybean production will be promoted on farmland that has historically grown soybeans.
  • In March 2016, China’s National Development and Reform Commission (NDRC) announced it would end the country’s corn stockpiling program in 2016. During the same month, China reportedly had approximately 250 million MTs of corn in its state reserves.From 2015 to 2016, China’s Ministry of Agriculture expects its wheat cultivation area to decrease by 20,000 ha, totaling 24.12 million ha.
  • In 2015, China produced 621 million MTs of grains, of which rice, wheat, and corn accounted for 92% of output (~572 million MTs). Grain crops were harvested on 113.3 million ha, with some new acreage appearing at the expense of cotton crops.
  • 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. 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 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.
  • In 2014, China produced 607 million MTs of grain.

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