On December 15, the Meeting for the Development and Promotion of Agricultural Industry
Modernization was held in Jiangsu Province. It was stated at the meeting
that since the Thirteenth Five-Year Plan,
over 95% of rice and wheat varieties approved by Jiangsu Province are of high
quality. There are also improved varieties and high quality crops have covered
over 90% of the fields in the province.
Furthermore, 92% of the livestock and
poultry have been replaced with improved breeds. The high-quality development
of the modern agricultural industry guarantees an effective supply of important
agricultural products such as grains for all of China.
Jiangsu Mingtian Seed Ltd. was named the leading
company in China’s agricultural industry by the Department of Agriculture of
China. The CEO of Jiangsu Mingtian Seed Ltd. said that the company is working
hard to create a modern and competitive agricultural enterprise by several
methods:
1. Starting initiatives such as establishing
the “Mingtian Seed Research Laboratory”
2. Investing more resources into agricultural
research
3. Research of agricultural technology
The company established six locations for
performing experiments on crop cultivation in Jiangsu, Hainan, Hebei, and
Gansu. Jiangsu Mingtian Seed Ltd. currently grows 24 different types of crops,
including rice, wheat, corn and cotton.
Jiangsu’s farmers unable to sell rice
and wheat supplies
In Jiangsu’s flour market, the usually busy
winter season has been slow, and businesses have not seen significant increases
in sales despite the upcoming holidays. As a result, the operations of flour
processing factories in Jiangsu have not seen significant changes. Recently, many
companies in Jiangsu have increased their supplies of wheat, storage and
operating costs have been higher than expected, while flour processing
enterprises have not given reliable business.
As the supply of grain in the market
increases, the price of wheat in the Jiangsu market is showing a downward
trend. On November 7, the Chinese government began its plan to purchase wheat
from Jiangsu businesses to support the agricultural economy, but the assistance
given by the government has been too limited to meaningfully impact the market.
The prices in the grain market have fallen dramatically compared to last year,
especially for rice. Buyers are showing greater selectivity in their purchases.
Jiangsu’s rice and wheat prices in
recession
According to a survey, seven major grain
processors in Heilongjiang purchased 16.3 million tons of round-grain rice
during 2019 before December 5, a decrease of 4.3 million tons compared to last
year. Data from China’s National Food and
Strategic Reserves Administration shows that during 2019, the price of
long-grained rice in China ranged between RMB 2,200 and RMB 3,530 per ton, with
an average price of RMB 2,518 per ton. In Jiangsu, the price of long-grained
rice ranged from RMB 2,380 per ton to RMB 2,520 per ton, with an average price
of RMB 2,434 per ton, a decrease of RMB 77 per ton compared to last year.
Furthermore, the price of round-grain rice
in China during 2019 ranged from RMB 2,300 per ton to RMB 3,660 per ton, with
an average price of 2,637 per ton. In Jiangsu, the price ranged between RMB 2,300
per ton and RMB 2,640 per ton, with an average price of RMB 2,459 per ton, a
decrease of RMB 220 per ton compared to last year.
For more information on China’s
agricultural market, please check our market intelligence
resources.