China Rivals World's Top Corn Exporters

People's Daily Online ^ | Tuesday, April 15, 2003

[Willie Green]

For education and discussion only. Not for commercial use.

China has seen soaring corn exports since the beginning of this year, making it second only to the United States in corn exports.

Ren Ping, an expert with the cereal and oil information center of northeast China's Jilin province, said China had provided the world market with an abundant corn supply through its clearance sales in 2003.

In addition, China's persevering efforts in opening up global market had contributed to the sound outlook of domestic corn exports this year, Ren noted.

The northeast China Plain, known as one of the world's three largest "golden corn belts", enjoys equal reputation with the cornfields in the United States and Ukraine. The corn output of Jilin province accounts for around 15 percent of the country's total.

With annual exports of two to three million tons, Jilin has taken half of the corn exports in China. Last year, the province'scorn exports made up for nearly 60 percent of the country's total.

In 2002, China exported 11.67 million tons of corn, ranking second in the world.

Qu Xiaofeng, a woman official with the provincial grain center, said that the United States experienced a comparative decline in corn exports last year due to lower yields plus the rising exports of China and Argentina.

The United States, China and Argentina would see more intense competition in the global corn markets in coming years, Qu predicted.

Though the United States would maintain first place in corn exports, its export price was unlikely to rise because of the influence of Iraq War and meteorological factors, she said.

Argentina was third in corn exports last year, but gained ground at the beginning of this year. It would continue to compete with China as second largest corn exporter this year, Qu said.

China has launched a series of policies favoring grain exports since last year, such as exempting railroad-transported rice, wheat, corn and soybean from railway construction funds and imposing preferential added value taxes on farm produce.

Thanks to these active positive policies, China's total corn export volume hit a record high last year. The growth was even more obvious in the first two months of this year with exports amounting to 2.34 million tons, 134 percent higher than the same period last year.

Experts expect that China's corn exports this year is expected to reach 10 to 12 million tons according to the current growth rate.

Meanwhile, the decline of global corn reserves and further increasing ocean freight will sustain the further rise of corn prices in the international market, which will also create development opportunities for China.

Experts hold that China's corn exports to the Republic of Korea, Iran, Saudi Arabia and southeast Asian countries will not be greatly impacted negatively by the global political and economic climate owing to geographical advantages. Besides, Chinese corn has won a large international market share, relying on competitive prices and enhanced quality.

[Willie Green]

I wonder if the farmers who are pushing for free trade on the theory that there are a lot of hungry Chinese have read this. Looks like China's selling food not buying.

[Willie Green]

Export Illusions: Most International Trade Agreements are about Investment, Not Exports

[HighRoadToChina]

Well, when you have lots of slave labor and almost slave labor, there are lots of farm hands.

[kaylar]

This article from December 2000 might be of interest, and it certainly relates to US farm exports:President Bill Clinton Advocates End of Farming in U.S.

[Cicero]

Interesting. There were severe weather problems only last year, and it has often been argued that the Chinese are destroying their agricultural land at a great rate by overuse and so were bound to run short of food.

[lewislynn]

it has often been argued that the Chinese are destroying their agricultural land at a great rate by overuse and so were bound to run short of food.

Gee, I've never heard anything like that about our farmland.

[green team 1999]

also i did read somewhere that they are short on rice! much more needed on china,

[lewislynn]

I wonder if the farmers who are pushing for free trade on the theory that there are a lot of hungry Chinese have read this.

I think the farmers who thought they were going to ride a gravy train after pushing for the government mandated ethanol should be more worried. California ports, including inland ports at Sacramento and Stockton are already capable of handling huge amounts of grain.

[southernnorthcarolina]

I wonder if "corn" as used herein is "corn" in the American sense, that stuff that Iowa's famous for. In British English, "corn" is the word used for wheat, oats, or grain in general. The vegetable that grows on ears is called "maize" there. Might it be that because of Hong Kong's influence, British English is used in China more often than American English?

On the other hand, there is this language from the story:

China has launched a series of policies favoring grain exports since last year, such as exempting railroad-transported rice, wheat, corn and soybean from railway construction funds and imposing preferential added value taxes on farm produce.

So, maybe "American corn" is what is meant. If so, I'd be surprised. I do know that large portions of northern China have a wheat-based diet (hence, noodles rather than rice), because it's too cold to grow rice. But I'd be quite surprised if China really is a major grower of "corn" as we know it. Well, except for those miniature ears of corn they put in Szechuan chicken. :-)

[Lake]

>>there are lots of farm hands.

not the farm land.

[Lake]

>>Looks like China's selling food not buying.

China buys alot, flour for example.

[Willie Green]

China's Agricultural Glut (PDF)
"Although memories of past famine keep China focused on food security, China's largest agricultural priority is to more efficiently warehouse and export its glut in almost every agricultural commodity."