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Avian flu and pork price weakness intensified Chinese corn oversupply situation
China Grain and Oil Information Network 2014-3-4 9:19:11
Since the outbreak of bird flu in China, with pork prices cause damage to animal feed demand, exacerbated by China corn oversupply, but may also lead to further restrictions on Chinese imports of U.S. genetically modified corn.
Since last November, China began to import maize to strengthen monitoring and returned up to 1 million tons of U.S. genetically modified corn, which put pressure on corn prices. China said that the reason is that U.S. corn returned from China detected without the approval of genetically modified oh. But industry sources said the move may be to protect their own interests of farmers, from the effects of oversupply of corn. Market speculation that China may adopt delaying tactics on the issue of the approval of genetically modified maize.
January of this year, Guangdong outbreak of avian influenza, also forced to reduce the breeding stock farm. Last year millions of chickens have been culled birds, causing serious economic losses suffered by the poultry industry.
Shenyang Feng Animal Husbandry Co., Ltd. Chairman Jin Weidong said that in the past year, chickens, ducks and hens are three major business losses, have not yet recovered, and the situation is worse. This year's situation is not optimistic, it is difficult to increase production this year will be a very challenging year.
China accounted for the amount of corn for animal feed 60% of which half is used to produce poultry feed. Poultry feed production in 2013 decreased by 8% total amount of corn is also reduced to 186 million tons, which is the first decline in four years.
Ministry of Agriculture, said that this year so far, the outbreak of bird flu in poultry industry has brought about 20 billion yuan in economic losses, as a comparison, in the first half of last year's loss of 60 billion poultry industry. Analysts pointed out that this year is worse than last year, there are many poultry farms cash flow problems, it is difficult to replenish breeding stock.
Meanwhile, pork prices also led to many small pig farmers had to interrupt business. According to the China National Grain and Oils Information Center, January Chinese hog inventory to its lowest in 10 months. Pork prices fell to eight-month lows, the government has started buying pork, but analysts said the acquisition of government pork stocks too low to boost market prices.
Analysts pointed out that the 2013/14 annual Chinese corn demand is likely to be flat, the most frequent moderate growth. In addition to the avian flu, the corn processing industry also showed hysteresis.
Due to weak domestic demand began to increase farmers to sell corn to the government, the end of April the Chinese government's maize stocks will be increased 50 million tons in the current level. 2013 Chinese corn production reached a record 217.7 million tons.
The government has already reached 30 million tons of maize stocks, so the end of April, the Chinese government's maize stocks will exceed EU corn production, equivalent to the annual consumption of the country's 43%.
Analysts said the huge pressure on the stock might take a year or even two or three years time to digest. In recent months the Chinese government has returned the 887,000 tons of U.S. corn, industry sources estimate the total amount returned may reach 100 million tons. Therefore, analysts expect China's annual corn imports in 2013/14 may be only 400 million tonnes, lower than the current USDA forecast of 5 million tons.
(Le Lan)
zhttp://www.chinagrain.cn/yumi/2014/3/4/2014349191115933.shtml
China Grain and Oil Information Network 2014-3-4 9:19:11
Since the outbreak of bird flu in China, with pork prices cause damage to animal feed demand, exacerbated by China corn oversupply, but may also lead to further restrictions on Chinese imports of U.S. genetically modified corn.
Since last November, China began to import maize to strengthen monitoring and returned up to 1 million tons of U.S. genetically modified corn, which put pressure on corn prices. China said that the reason is that U.S. corn returned from China detected without the approval of genetically modified oh. But industry sources said the move may be to protect their own interests of farmers, from the effects of oversupply of corn. Market speculation that China may adopt delaying tactics on the issue of the approval of genetically modified maize.
January of this year, Guangdong outbreak of avian influenza, also forced to reduce the breeding stock farm. Last year millions of chickens have been culled birds, causing serious economic losses suffered by the poultry industry.
Shenyang Feng Animal Husbandry Co., Ltd. Chairman Jin Weidong said that in the past year, chickens, ducks and hens are three major business losses, have not yet recovered, and the situation is worse. This year's situation is not optimistic, it is difficult to increase production this year will be a very challenging year.
China accounted for the amount of corn for animal feed 60% of which half is used to produce poultry feed. Poultry feed production in 2013 decreased by 8% total amount of corn is also reduced to 186 million tons, which is the first decline in four years.
Ministry of Agriculture, said that this year so far, the outbreak of bird flu in poultry industry has brought about 20 billion yuan in economic losses, as a comparison, in the first half of last year's loss of 60 billion poultry industry. Analysts pointed out that this year is worse than last year, there are many poultry farms cash flow problems, it is difficult to replenish breeding stock.
Meanwhile, pork prices also led to many small pig farmers had to interrupt business. According to the China National Grain and Oils Information Center, January Chinese hog inventory to its lowest in 10 months. Pork prices fell to eight-month lows, the government has started buying pork, but analysts said the acquisition of government pork stocks too low to boost market prices.
Analysts pointed out that the 2013/14 annual Chinese corn demand is likely to be flat, the most frequent moderate growth. In addition to the avian flu, the corn processing industry also showed hysteresis.
Due to weak domestic demand began to increase farmers to sell corn to the government, the end of April the Chinese government's maize stocks will be increased 50 million tons in the current level. 2013 Chinese corn production reached a record 217.7 million tons.
The government has already reached 30 million tons of maize stocks, so the end of April, the Chinese government's maize stocks will exceed EU corn production, equivalent to the annual consumption of the country's 43%.
Analysts said the huge pressure on the stock might take a year or even two or three years time to digest. In recent months the Chinese government has returned the 887,000 tons of U.S. corn, industry sources estimate the total amount returned may reach 100 million tons. Therefore, analysts expect China's annual corn imports in 2013/14 may be only 400 million tonnes, lower than the current USDA forecast of 5 million tons.
(Le Lan)
zhttp://www.chinagrain.cn/yumi/2014/3/4/2014349191115933.shtml
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