Jiangsu Province holds meeting for agricultural modernization 01-10-2020

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.

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