News
29.01.2018
China is actively reducing the maize stocks
According to the USDA data, in China the final maize stocks in the 2017/2018 MY are projected at 79.5 mln tons, which is 21.2 mln tons less than the year before. A significant reduction in the carry-over stocks of this cereal crop has been achieved thanks to a well-considered policy. In 2016, the PRC announced the end of nine-year-old corn price support program. Recall that the state provided subsidies to farmers, which encouraged agricultural producers to grow this grain, but eventually a substantial increase in production volumes actually crippled the prices of crop both in the domestic market of China and in the world arena. Thanks to this state program, the area of cornfields increased by 60% to almost 36 mln hectares from 2001 to 2017. Now the government intends to reduce them by another 3.3 mln hectares or by 9% till 2020.
The PRC is one of the largest maize consumers. In 2017/2018 MY, the country's domestic consumption is estimated at 240 mln tons, which is 8 mln tons more than the year before and 32 mln tons more than in 2013/2014 MY. The dynamic growth of maize consumption is primarily due to the fact that China is the leading pork producer with 50.5% share of the global market and uses maize for compound feedstuff production.
