by PressChina plans to reduce imports of wheat and corn
Chinese officials: wheat and corn imports should decrease
China has adopted a new strategy for the agricultural industry. The government hopes that trade in services will enable local companies to actively develop. In addition, the new direction will reduce imports of wheat and corn, thereby weakening food dependence on other countries.
The essence of the strategy is that Chinese companies will invest in a variety of agro-industrial projects in other countries. Thus, China wants to increase sales of food products in other countries.
The Ministry of Agriculture notes that in recent years there have been a number of problems in the global market that limit its development. First of all, difficulties are noted in the logistics segment. In addition, the agricultural industry is experiencing a huge shortage of labor caused by the pandemic. To improve the situation in the country and the world as a whole, the ministry recommends that Chinese companies devote resources and forces to trade in agricultural services. Such a move would create a strong domestic base for business development and strengthen China’s position on the world stage.
This strategy is already being implemented in some countries. For example, the China Railway 20th Bureau Group Corporation is cooperating with farmers in Mozambique to increase rice yields. To this end, innovative technologies that have been developed by Chinese scientists are being introduced. In 2017, the company built a rice processing plant, with raw materials purchased in Mozambique.
Experts expect that within 15 years the agricultural industry in China will radically modernize and become much stronger. Officials expect the volume of imported wheat and corn supplies to decrease in the near future. However, purchases of soybeans and rice will rise for now.
One of the exporters of soybeans to China is Russia. Not long ago, the country imposed new duties that limit the ability of local traders. However, these rules have not affected prices and shipments. This season, China bought the same amount of Russian soybeans as in previous periods. China still needs a lot of agricultural products, most of which are used for the feed needs of the livestock industry. The main producer of soybeans for PRC is Priamurie, where 90% of the harvest is supplied to China.
It should be noted that at the end of last year Chinese importers reduced purchases of corn by 63%. In addition, the supply of barley and wheat decreased, while imports of sorghum increased. China has repeatedly stated that it plans to reduce food dependence on foreign exporters and is gradually implementing its strategy.