China: Grain and Feed Annual

  |   Attaché Report (GAIN)

Nearly all players in the Chinese grains market continue to operate with little certainty about how the central government intends to manage the transition towards a more liberalized farm sector. In 2016, China removed price supports for corn producers, who face some of the highest costs of production in the world. Recent policy proclamations have introduced a raft of farm stimulus programs to encourage China’s nearly 250 million farmers to diversify production. Overall, China has moved past a food security program focused on staple grains and is looking to a feed security program based on a basket of products. MY2017/18 corn production is forecast at 217 million tons, down nearly three million tons from MY2016/17. Producers have several market-based and policy incentives to switch to alternatives, including wheat, rice, soybeans and sorghum among others. 

China: Grain and Feed Annual

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