Aarkstore Enterprise Research Report On China's Corn Industry, 2011-2012

Corn is an important grain variety in China whose output in 2009 was about 165 million tons

. China's corn consumption is mainly divided into feed consumption and industrial consumption. Macroeconomic circumstances exert more influence on the consumption of corn compared with those of ration varieties such as wheat and rice grain. In recent years, with the increase in China's feed and industrial demand, China's corn consumption demand has been on the rise. In 2010, China's total corn consumption was over 180 million tons, increasing by over 5% over 2009. With the recovery of Chinese economy, the demand of China's feed and deep-processing industry for corn will see an obvious increase in 2011-2012.

Among China's processed corn products, primary products occupy a large proportion with low added value. Processed products with high technological content and added value still fail to meet market demand.

Another outstanding problem in China's corn processing industry is that the production capacity of primary products especially for starch and alcohol is excessive, and the industry's capacity utilization rate is deficient; small enterprises are numerous and competition among enterprises is fierce. The industry needs to be further integrated.

In recent years, as the Chinese government's implementation of the minimum purchase price policy for grain and the increase in cultivation cost, China's corn price has been ascending year by year. Since corn market price was continually going up in 2009, the corn cultivation area in 2010 increases.

China was always a net corn-exporting country before 2010. However, when China suffered from drought in 2009, the decline of corn yield and the increase of corn demand in the domestic market led to the accelerating import of corn in China since 2009. In 2009, the corn export volume in China was 129,000 tons, which is 50.9% of that in 2008. In 2009, the export volume in China was 83,000 tons, which is 5.6 times over that in the same period of 2008.

In January-October 2010, China exported 1,478,754 tons of corn in total, increasing by 4,402.09% YOY. But China's corn export volume was only 112,234 tons in the same period. In 2010, it has been a foregone conclusion for China to be a net corn-exporting country.

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From:Aarkstore Enterprise

Contact: Neel

Email: press@aarkstore.com

URL: www.aarkstore.com

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