China Agri News Week 24, 2020
This is the news overview of week 24 from the agricultural team of the Netherlands Embassy in Beijing.
Dairy Market Expected to Show Steady Growth in Upcoming Decade
On April 29th, the Ministry of Agricultural and Rural Affairs published China’s Dairy Product Outlook Report 2020-2029. It is forecasted that, despite disruptions caused by the COVID19 pandemic, dairy consumption growth will decrease to 2.8% YOY in 2020 (in 2019, growth was at 4.9% YOY). However, authorities estimate that consumption will reach a total of 66 million tonnes, 39.1% growth in 2029.
Domestic production will increase through the consolidation and upscaling by optimizing production structure, producing quality forage, reusing animal manure, upgrading breeding practices, and through the development of quality milk production bases. In addition, it is also expected that more foreign nations will gain market access for the export of their dairy products (source, available on request: UN Theme Group on Agriculture and Food Security, China).
Hog Futures Listed at Dalian Commodity Exchange
The Dalian Commodity Exchange (DCE) was approved to trade live pig futures, the first financial derivative based on a live animal in the world’s top pork-producing country. The introduction of hog futures is an important step for the country’s futures market to serve the development of the real economy, the China Securities Regulatory Commission said in a statement on its website.
Hog futures will play a positive role in improving the mechanism of pig pricing formation, improving the risk management ability of market players, and boosting the development of the pork industry, the regulator said (source: Caixin).
Livestock and Poultry Genetic Resources Catalogue Released
On May 29th, the Ministry of Agriculture and Rural Affairs released the Livestock and Poultry Genetic Resource Catalogue. The catalog clarifies 33 species of animals that can be raised legally. Most notably is that dogs are no longer traditional livestock, and are therefore excluded from the list for the first time.
The list makes a distinction between 17 species traditionally raised in China and 16 foreign or regionally raised animals. Some animals of the latter, such as mink, silver fox, arctic fox, and raccoons, can be bred, but not for consumption (source: World Dog Alliance).
Short News:
- According to state media, the clinical trials of the AFS vaccine showed promising results (source, Chinese only: Farmers’ Daily, June 10th).
- An ASF outbreak was reported at Yongshen County in Yunnan Province (source, Chinese only: Farmers’ Daily, June 6th).
- Guangdong province launched 763 agricultural and rural projects aiming at improving agricultural production whilst preserving life and ecology. In the provincial capital Guangzhou, 134 projects started construction with a total value of 133 billion yuan (source, Chinese only: Farmers’ Daily, June 8th).
- Urban Green will build a new greenhouse facility for Bright Food Group Co. Ltd. On Chongming Island near Shanghai. The island is one of China’s designated area’s for the promotion of green agricultural innovation and development focused on ecology, high quality, and internationalization (source, Chinese only: TTA).