China Grain Production Outlook in 2014

By CnAgri2013-12-25 09:23:05 Print Based on current price level, farmers’ planting profit and government’s supports, in 2014, grain planting acreage is predicted to remain stable or decline slightly, according to BOABC, it will register 111.66 million hectares with decline rate of 0.26%; supported by policy, grain price shall see a growth rate of over 5%; both unit output value and planting cost shall see certain increase and profit and cost rate shall rise to 18.37%, but still at a low level. 
　　
Grain planting output value is predicted to be 2.0428 trillion yuan, total profit, 317.1 billion yuan and agricultural material cost, 1.7257 trillion yuan, up 5.96%, 11.03% and 5.07% respectively.
　　
Agricultural material consumption and market value of agricultural services shall increase slightly. In 2014, agricultural material consumption is forecast at 53.23 million MT, up 2.52% from 2013, of which, consumption of seeds, fertilizer and agricultural film is 11.53 million MT, 41.35 million MT and 361,100 MT, up -0.09%, 3.26% and 3.90% respectively; and the market value of seeds, fertilizer, pesticide, agricultural film and agricultural materials is 105.5 billion yuan, 221 billion yuan, 46.6 billion yuan, 5 billion yuan and 324.4 billion yuan, up 11.71, -2.86%, 2.73%, 2.73% and 3.71% respectively from 2013.
　　
The sluggish fertilizer market is caused by low price and consumption value decline of autumn planting crops. Besides, price decline of fertilizer is favorable for decrease of agricultural investment and improvement of farmers’ profit.

From “China Oil and Oilseeds Market Weekly Report”