China will further encourage the use of corn to make ethanol this year amid efforts to reduce its huge grain stocks, as authorities mull adjustments to the floor prices for wheat and rice this year. Xu Shaoshi, head of the National Development and Reform Commission, told an annual work conference on grain circulation recently that the top economic planner will allow a moderate increase in corn-based ethanol and expand its use in other areas to help absorb the corn stocks…Full Article: ENCS.cn Jan 2017
- The National Development and Reform Commission (NDRC) is considering changing the minimum purchasing price for wheat and rice in 2017. At the same time, head of the NDRC noted that Chinese imports of sorghum, barley, meat, poultry, and dairy products will continued to be controlled in order to reduce its grain stocks. The Chinese government stores approximately 85% of the country’s rice and corn stocks.
- By 2020, China hopes to ensure that 85% of crop stalks are reused, 80% of plastic agricultural film and forestry waste materials are recycled, and 75% of animal waste (e.g. livestock and poultry) undergoes reprocessing.
- In October 2016, a Beijing publication stated that the average corn price paid by ethanol companies in Jilin Province was CNY 1,450 (US$217.44) per MT. At the same time, the purchase price paid by ethanol companies in Kaiyuan, Liaoning Province, was CNY 1,570 (~US$233) per MT.
- In 2016, China produced on average 2.1 million MTs of ethanol annually and had a biomass energy capacity of 10 gigawatts (GW), which was below the target goal of 13 GB by 2015.
- In April 2016, China’s Ministry of Agriculture announced it would increase soybean production at the expense of corn production. The Ministry of Agriculture also noted that soybean production will be promoted on farmland that has historically grown soybeans (e.g. Heilongjiang Province).
- 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.
Hong Kong Trends