China to Boost Domestic Corn Output to Meet Demand
(Reuters) China, the world's second-largest corn consumer, said it will focus on raising domestic corn production to meet fast-rising demand and is testing use of genetically modified organism (GMO) technology to boost output, a senior government official said on Thursday.
In a bid to tame booming demand, Beijing will continue to control the use of corn by industrial processors, whose soaring consumption has helped exacerbate a corn deficit that has pushed corn prices to record highs despite record corn harvests.
"We have approved one type of GMO strain and we're testing to see if they can be applied to boost production," Chen Xiaohua, a vice agricultural minister, said at a press conference.
"GMO technology is the strategic choice of the country in future."
China's rapid demand growth, mainly from its animal feed production, has led to a shortfall over the past two years as domestic production failed to meet demand.
China began to import corn from the United States last year and expects import volumes to be big this year as the government refills its low stockpiles.
"We aim to boost domestic production. In the meantime, we will also try to keep corn consumption at a reasonable level, we will stick to the policy that the industrial use should not compete with grains for people," said Chen.
"Corn consumption by industrial processors should be restricted to a reasonable level."
Corn processors have been ordered by Beijing to temporarily stop purchasing corn from farmers this year, and Beijing has also restricted expansion of the industry.
The industry has built up capacity to process more than 60 million tonnes of corn to make products, including starch, alcohol and lysine.
Chen said the country's grain harvest this year will hit a record high due to expanded acreage, but even so, domestic grain prices would continue to climb moderately, reflecting rising planting costs. Earlier, a top planning body official also expected the country's grain harvest to hit a record.
Chen would not comment on whether the government would consider changing its 95 percent self-sufficiency target for grains.
The U.S. Grains Council said last week that China could still import some 8 million tonnes of corn at the current 95 percent self-sufficiency target and the volume could jump to as much as 16 million tonnes if Beijing lowered the rate to 90 percent.
http://www.reuters.com/
In a bid to tame booming demand, Beijing will continue to control the use of corn by industrial processors, whose soaring consumption has helped exacerbate a corn deficit that has pushed corn prices to record highs despite record corn harvests.
"We have approved one type of GMO strain and we're testing to see if they can be applied to boost production," Chen Xiaohua, a vice agricultural minister, said at a press conference.
"GMO technology is the strategic choice of the country in future."
China's rapid demand growth, mainly from its animal feed production, has led to a shortfall over the past two years as domestic production failed to meet demand.
China began to import corn from the United States last year and expects import volumes to be big this year as the government refills its low stockpiles.
"We aim to boost domestic production. In the meantime, we will also try to keep corn consumption at a reasonable level, we will stick to the policy that the industrial use should not compete with grains for people," said Chen.
"Corn consumption by industrial processors should be restricted to a reasonable level."
Corn processors have been ordered by Beijing to temporarily stop purchasing corn from farmers this year, and Beijing has also restricted expansion of the industry.
The industry has built up capacity to process more than 60 million tonnes of corn to make products, including starch, alcohol and lysine.
Chen said the country's grain harvest this year will hit a record high due to expanded acreage, but even so, domestic grain prices would continue to climb moderately, reflecting rising planting costs. Earlier, a top planning body official also expected the country's grain harvest to hit a record.
Chen would not comment on whether the government would consider changing its 95 percent self-sufficiency target for grains.
The U.S. Grains Council said last week that China could still import some 8 million tonnes of corn at the current 95 percent self-sufficiency target and the volume could jump to as much as 16 million tonnes if Beijing lowered the rate to 90 percent.
http://www.reuters.com/
Posted by Colvin & Co. at 10/12/2011 5:30 AM 
Categories: Food Security
Tags: agriculture farmland corn commodities china
Categories: Food Security
Tags: agriculture farmland corn commodities china
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