AgriChina Investor 1202 - Annual Subscription

• Publication date: February 2012

In 1994, Lester Brown wrote a book, "who will feed China", predicting that China would turn to international grain markets to meet the expanding food demand with its increasing population. Many people opposed Lester Brown's view at that time. However, over ten years have passed, people in China have turned to agree with that view. Ensuring enough food for over 1.3 billion people may be the most important task for Chinese government. China ...

In 1994, Lester Brown wrote a book, "who will feed China", predicting that China would turn to international grain markets to meet the expanding food demand with its increasing population. Many people opposed Lester Brown's view at that time. However, over ten years have passed, people in China have turned to agree with that view. Ensuring enough food for over 1.3 billion people may be the most important task for Chinese government.

China has carried out many measures to increase domestic grain production and will surely take more in the future. However, the country still has to import lots of agricultural produces to meet the strong demand in domestic market, even under the condition of its record high grain production in 2011. China's import value of agricultural produces rose sharply by 30.8% to USD94.9 billion in 2011, expanding the trade deficit to USD34.2 billion, up 47.4% year on year, and this momentum is expected to continue in the future.
According to the target released by the government in 1996, China's grain self-sufficiency rate should not be lower than 95%.

However, if edible oil seeds are involved in the statistics, China has failed to achieve this goal. China imported over 60 million tonnes of grain (edible oil seeds included) in 2011, equaling to over 10% of the grain produced in China in the same year. Besides, the import of corn has surged sharply in recent two years, although it only accounted for a small market share of the consumption in China.

It seems inevitable for China to turn to the global market for grain supply. The question is: will the global market have enough grain to meet its huge appetite?

On 6 February 2012, Starbucks established a JV with its Yunnan-based partner, signing that many multinational companies eye coffee market in China.
Pengxin's purchase of 16 Crafar farms faces many challenges even though it was approved by the New Zealand government in late Jan. 2012.
On 31 Jan. 2012, Xinjiang Chalkis disclosed that the cooperation between the company and Yihai Kerry has broken off, not long after the two companies inked cooperation agreement in 2011.
China aims to foster 2-3 pesticide players with revenue over RMB10 billion (USD1.59 billion) by the end of 2015. Who could be the most possible candidates?
China's import of agricultural produces witnessed sharp rise in 2011 and the trade deficit was expanded to USD34.2 billion, up 47.4% year on year.
Scale pig breeding will play a more and more important role in China's pig industry in future.
The high growth potential in domestic demand for organic agricultural produces can't cover the plight of current organic food market.
China issued a document--the "Twelfth Five-Year Plan for Potato Industry" in late Jan. 2012 , which is estimated that the domestic potato industry will enjoy a rapid growth during 2012-2015.
Agricultural insurance will be further promoted aided by the support from Chinese government.
Although domestic agricultural logistics has made great progress in recent years, the low circulation efficiency and the backward infrastructure have hindered its further development.
The U.S. Soybean Export Council claimed that Chinese delegation has signed agreements to purchase 11.34 million tonnes of U.S. soybean in total, with a value of USD6.7 billion.

Hot Drink Industry in China

Multinational companies eye coffee market in China
Pengxin seeks overseas expansion in dairy industry
Xinjiang Chalkis and Yihai Kerry failed in further cooperation

Who will be the RMB10 billion pesticide player in China
2011 Import of agricultural produces surges in China
Scale breeding to play more important role in China's pig industry
Chinese rapeseed industry confronting serious loss
Profits of Chinese dairy industry up 34.70% in 2011
Pesticide demand expected to increase by 4.37% in 2012
China raises grain purchasing price in 2012
2011 trade of aquatic products maintains fast growth in China
Brand value of Yantai apple rises to USD1.46 billion

Organic agriculture investment: Only looks nice in China?

China released Draft of Grain Law to safegurad grain security
China instructs development of potato industry till 2015
Agricultural insurance in China to be promoted by policy support
Agricultural logistics' problems become increasingly prominent
2011 Feed output in China hits 169 million tonnes

Chinese delegation signs agreements to purchase U.S. soybean
China aims to raise sugar self-sufficiency rate to 85% by 2015

Companies mentioned
Starbucks Coffee Company
Xinjiang Chalkis Co., Ltd.
Shanghai Pengxin Group Co., Ltd.

Coffee in China

China Ready To Drink (rtd) Tea/coffee (mn Litres)

• $ 250
• Industry data
• January 2013

Yearly, From 2007 To 2017
By Business Monitor International
Source: Trade press, Company information, BMI

• Industries : Hot Drink
• Countries : China

China Ready To Drink (rtd) Tea/coffee, Us$mn

• $ 250
• Industry data
• January 2013

Yearly, From 2007 To 2017
By Business Monitor International
Source: Trade press, Company information, BMI/BMI calculation

• Industries : Hot Drink
• Countries : China

China Coffee Sales, Cny, % Change Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI/BMI calculation

• Industries : Hot Drink
• Countries : China

China Coffee Sales, Tonnes, % Change Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI/BMI calculation

• Industries : Hot Drink
• Countries : China

China Coffee Sales Eurmn

• $ 250
• Industry data
• January 2013

Yearly, From 2004 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI/BMI calculation

• Industries : Hot Drink
• Countries : China

Hot Drink in China

China Coffee Sales, Tonnes

• $ 250
• Industry data
• January 2013

Yearly, From 2004 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI

• Industries : Hot Drink
• Countries : China

China Coffee Sales, Us$, % Change Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI/BMI calculation

• Industries : Hot Drink
• Countries : China

China Tea Sales, Cnymn

• $ 250
• Industry data
• January 2013

Yearly, From 2002 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI

• Industries : Hot Drink
• Countries : China

China Tea Sales, Tonnes

• $ 250
• Industry data
• January 2013

Yearly, From 2002 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI

• Industries : Hot Drink
• Countries : China

China Tea Sales Us$ % Change Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2003 To 2017
By Business Monitor International
Source: National Bureau of Statistics, Trade press, Company information, BMI/BMI calcualtion

• Industries : Hot Drink
• Countries : China