subject: Grain Processers Exceeding 5,000 in China [print this page] Grain Processers Exceeding 5,000 in China
www.cri-report.com - In 2009, the yield of grain in China was about 520-530 million tons, increasing slightly over 2008. In recent years, the grain yield in China has been steady while the price has been inclined to rise. At the beginning of 2009, northern production areas of wheat suffered serious drought and the stricken areas went beyond 23 million acres. In 2010, such natural disasters as drought reduced the yield of grain in parts of China. It is predicted that in 2010 the yield of grain in China will decrease over 2009, and the grain prices in China will continue rising in 2011-2012.
The policies of canceling agricultural taxes issued by the Chinese government and dispensing subvention in recent years are favorable to the grain production. However, the shift of rural workforce to cities and high prices of chemical fertilizers and pesticides which made peasants felt that farming was unprofitable, kept China's grain production from a rapid increase.
There are at least 5,000 local grain processing enterprises in China. Meanwhile, many international grain processing tycoons, including ABCD (i.e. the top 4 tycoons), have entered Chinese market. As a result, the competition of China's grain market has been increasingly fierce.
The author has researched the Chinese grain industry, grain processing market and the grain processing enterprises for many times and cited abundant second-hand information in this report.
