Cooperation agreement for exporting agricultural product from Serbia to China signed 03-12-2021

Summary: On 5 Feb., the agreements on health and quarantine requirements for corn and beet pulp exported from Serbia to China were signed, signifying the further open-up of China's import of agricultural products.

 

On 5 Feb., China Customs and representatives of Serbia signed the Agreement on Health and Botanical Health Requirements for Beet Pulp from Serbia to China, the Agreement on Botanical Quarantine Requirements for  Corn Exported from Serbia to China and the Agreement on Mutual Recognition of Enterprise Credit Management System of China Customs and Authorized Operator system of Serbia Customs, which are expected to further open up China's market, and to ease the domestic reliance on corns from Ukraine and the US.

 

At present, no sign of drop is seen in corn price in China. The average price of corn in Jan. in China was USD418.91/t , 9.50% or USD36.33/t higher than that of last month, and 60.94% higher over last year. Due to the high price, dramatically growth was seen in corn import in China. In Dec., 2020, China imported 2.25 million tonnes of corn, with a value of USD523 million, a MoM increase of 83% and 82% respectively and a YoY increase of 207% and 211% respectively, 94.5% of which came from Ukraine and the US, with the import volume (value) of 1.07 million tonnes (USD245 million) and 1.06 million tonnes (USD245 million). In 2020, China imported a total of 11.3 million tonnes of corn, with a value of USD2.49 billion, increasing by 135.7% and 134.5% respectively compared to last year; and top 3 import origins were Ukraine, the US and Bulgaria.



Picture Proportion of China's corn import volume from top 3 origins in 2020



Source: CCM & China Customs


Early in 2019, Zhang Jiwen, the deputy director of China Customs, paid a visit to Serbia, and exchanged the views on exports of corn, pork, dairy and apple as well as strengthening the cooperation of food safety. According to the information from the Ministry of Commerce, PRC, Serbia exports a large amount of agricultural products annually. Corn is one of the country's major exported products, with a export value of USD551 million in 2019, 58.19% of which was sold to Romania. In 2020, the total export value of of Serbria's agricultural products reached USD4.1 billion, with major destinations as the EU and Russia. Serbria mainly export refined copper to China, which only took 1.68% compared to the total export value; in 2020, the export value of Serbria to China reached USD377 million, top 17th in the export market of Serbia.

 

On 9 Feb., President Xi Jinping announced in the Summit of National Leaders that China planed to import merchandise valued over USD170 billion from Central and Eastern Europe (CEEC) in the future 5 years, to speed up the admission process of agricultural product and food from CEEC, and to strive to double the import value of agricultural product from CEEC with an increase of 50% in agricultural trade value to each party. He also purposed to build the wholesale agricultural product market in CEEC with joint cooperation.


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