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China Corn Industry Research Report 2010-2014 & 2015-2019


News provided by

Research and Markets

17 Aug, 2015, 14:10 GMT

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DUBLIN, Aug. 17, 2015 /PRNewswire/ -- Research and Markets (http://www.researchandmarkets.com/research/j4fcv9/research_report) has announced the addition of the "Research Report on China's Corn Industry, 2015-2019" report to their offering.

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According to official statistics, China's corn yield in 2014 was 215.65 million tons, decreasing about 1.3% compared with last year. Corn has become China's most important variety of food crop. As regards to corn consumption, only about one third is eaten directly while the rest is used as fodder or industrial material. Macro-economic situation exerts greater influence on corn than on such rations as wheat and rice. In recent years, the demand for corn in China stays at a high level as farming and industrial demand increases.

Most of corn products are primary products whose additional value is low. Another problem in the corn processing industry is the excess capacity of primary products especially starch and edible alcohol as well as low operating rate. Besides, as the competition among small enterprises is fierce, the whole industry awaits further integration.

In recent years, with the implementation of the minimum purchase price policy for grain and the increase in planting cost, corn price has gone up gradually. As the market price of corn kept rising in 2009, the corn acreage expanded in 2010.

Corn price in the domestic market is far higher than that in the international market. In 2014, due to the implementation of such controls as genetically modified crops regulation and sales quota, 2.599 million tons of corn were imported into China, increasing by 20.4% year on year despite the expanded gap between domestic and international price which was larger than the above-mentioned 65%. However, corn substitutes like sorghum and barley grew in imports, totaling 11.19 million tons, increasing by 7.78 million tons i.e. 2.3 times year on year.

In 2014, China imported 5.42 million tons of distillers dried grains with soluble (DDGs) (a year-on-year growth of 35.3%) and 8.67 million tons of potatoes especially dry cassava (a year-on-year growth of 18.4%) which totaled over 14 million tons and partially replaced deep-processed products of corn. It is estimated that the big increase in corn substitute import in 2014 leads to a new stock of 10 million tons of local corn. If major exporters like Australia (in 2014, 71.6% of barley were imported from Australia) and the US (in 2014, 93.8% of sorghum were imported from the US) expand cultivation substantially in the coming year, the import of sorghum and barley substitutes will further grow, which increases the pressure on corn storage capacity.

With economic development and improvements in living standards, the demand for meat, egg and milk in China will keep increasing, so does the demand for grains used as fodder. However, due to the deepening urbanization and low gains of planting industry, more and more rural labor force turn to city for jobs instead of engaging in agriculture. Therefore China is expected to remain the largest grain importer in the future.

In the long term, the demand for corn enjoys good prospects of continuous growth. However, as the room for growth of corn yield is limited, the demand gap will expand further. Therefore, it is inevitable for China to increase its corn import. The annual import of corn and its substitutes is expected to surpass 10 million tons in the next few years. Hence the great investment opportunity in Chinese market for grain growers and trade companies.

Key Topics Covered:

1 Analysis of Corn Planting in China, 2010-2014

2 Import and Export of Corn in China, 2010-2014

3 Analysis of Corn Deep-processing Industry in China, 2010-2014

4 Fodder Industry in China, 2010-2014

5 Market Price of Corn in China, 2010-2014

6 Expectation of Corn Industry in China, 2015-2019

For more information visit

http://www.researchandmarkets.com/research/j4fcv9/research_report

Media Contact:

Laura Wood, +353-1-481-1716, press@researchandmarkets.net

Related Links

http://www.researchandmarkets.com

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