Recently, Tangrenshen Group and Tibet Hemu Investment Consulting Co.,Ltd signed “strategic cooperation framework agreement”. According to the agreement, Tibet Hemu Investment will transfer his 40% equity of Shandong Hemei Group to Tangrenshen Group, and Tangrenshen Group intend to use its own funds to acquire Shandong Hemei Group with no more than RMB 486 million, to accelerate its feed business development in Shandong Province.

It was reported that Tibet Hemu Investment Consulting Co., Ltd is the controlling shareholder of Shandong Hemei Group, holding 60% stake, and after the acquisition is completed, Tangrenshen Group will become the largest shareholder of Shandong Hemei Group. Statistics show that Shandong Hemei Group is a key agricultural leading enterprise, established in 2003 and is a large scale feed processing group, which has 24 feed mills in Shandong and the feed production capacity is more than 350 million tons and has more than 40 branches in Hebei,, Henan and Shanghai province.

Mr. Sun Shuangsheng, board secretary told reporter that after holding Shandong Hemei Group will accelerate its feed system through production base, network system and sales support, and expect the feed income will exceed RMB 10 billion. According to the mid year report of Tangrenshen Group, the sales revenue achieved 2.76 billion RMB, of which more than 75% pig feed while poultry feed had a very small proportion.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email  michael@boddingtonconsulting.com 

 http://roll.sohu.com/20131202/n391111627.shtml

Dairy market is not calm before New Year’s Day, a new round of domestic milk prices surge enterprise is an indisputable fact.
Reporters from the China Economic Times visited many supermarkets to find out that from December 1 Bright Group and Sanyuan Group fresh milk price increase by approximately 10%.

Relevant people from Bight Group said to the reporter , “From December 1 , Bright Dairy milk and yogurt products in four categories have price adjustment , but different strains of products and different regions the price vary, but the price adjustment was about 8% -9 % in the whole . ”

The person also said that continued rise milk price is the fundamental reason for the price adjustment this time. In addition to the logistics, transport, labor costs and high dairy costs, etc. are also reasons for the price adjustment, “I believe the reason for this is an industry problem, not just Bright group be front with.” The person said.

Relevant people from Yili Group said to the reporter, “consumer products are most sensitive to raw materials, the raw milk prices soar will inevitably push up the price of the milk products. The entire dairy industry must face up to this situation; similarly companies also need to adjust product prices to cope with this situation. ”

It is known that in 2013 dairy prices rise frequently, statistics shows that Mengniu and Yili group adjusted three times in August, September and November respectively, while Bright group adjusted twice.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email michael@boddingtonconsulting.com

 http://www.tech-food.com/news/2013-12-6/n1052805.htm

Yesterday, the Chinese inspection service confirmed that the provinces of Shandong, Henan and Shaanxi could export their apples to Chile.

The opening of the Chilean market for Chinese apples originates in a guarantee of access granted to the apples of Gansu in 2011. The most recent agreement was described as an important achievement in the expansion of international trade by the General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ). The agreement came shortly after the opening of another market for Chinese pome, specifically for the Sandy Pear, last year, when they were granted access to the United States.

In October, a group of representatives of the Ministry of Agriculture of Chile visited China to confirm the fruits’ quality and disease control standards, as well as to see the operations in the orchards and packing facilities. Following this, the representatives of the ministry felt that the Chinese facilities complied with the established protocols.

Currently, 16 orchards and 10 packaging facilities have been authorized to process the apples for the Chilean market. Meanwhile, the AQSIQ highlighted the feat by the Province of Henan as it was the first time that they were going to export plant products to the international market.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email michael@boddingtonconsulting.com

 http://www.freshplaza.com/article/115825/China-may-ship-pome-fruits-to-Chile

In the first three quarters of 2013, Vietnam spent USD800 million for importing powder milk, it is predicted to exceed USD1 billion in this year. On the contrary importing powder milk from the foreign company, the local consumers is returning to use the fresh milk in domestic with reasonable price and high quality. Especially, the strong success of TH True milk, the dairy industry is forecasted to develop with a good opportunity in Vietnam in the future.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email  michael@boddingtonconsulting.com 

 http://www.tienphong.vn/Kinh-Te/Doanh-Nghiep/660430/Cong-nghe-cao—chia-khoa-vang-cho-nganh-sua-trong-nuoc-tpp.html

Alongside the OECD-FAO report ‘Agricultural Outlook 2013-2022’, the OECD and FAO have published ‘Focus on China’, highlighting China’s growing role in international trade in food and agricultural products. It notes that rice and wheat production is a growing policy focus, given food security concerns. The analysis points out that, following agricultural and rural reforms, China’s “agricultural output grew 4.5 times over the 1978-2011 period”. This growth is expected to slow in the coming decade as “increasing resource and rural labour constraints” are faced. Food price inflation has already become apparent, according to the OECD-FAO review. However, higher incomes and increased food availability have improved food security in China, “with the number of undernourished falling by almost 100 million since 1990, despite [China] adding an additional 200 million people to its population”.

The report notes that “from 2001 to 2012, China’s agricultural trade (imports and exports) increased from US$27.9 billion to US$155.7 billion…, with China’s net trade deficit in agriculture and food standing at US$31 billion in 2012.” This trade deficit in food and agricultural products is forecast to continue to grow, as consumption growth will outpace production growth by 0.3% per annum in the coming 10 years.

At the sector level, “China’s imports of oilseed are expected to rise by 40% over the 2013-22 period,” coming to account for 59% of global trade. The Chinese meat and dairy sectors “will continue to expand, with increasing feed requirements which will result in higher imports of coarse grains” – and these import requirements will be in excess of current import quotas. With Chinese milk production projected to grow more slowly than consumption growth, Chinese dairy imports are projected to rise by 20%, “with skimmed and whole milk powder accounting for 82% of total dairy imports”.

Chinese sugar imports are projected to “stay above the tariff-rate quota [TRQ] level over the projection period”.
The area under cotton in China is expected to decline by 21% as cotton usage falls in response to increased competition in textiles from India and other lower wage economies. This is a major reversal of the trend over the last decade.
As noted in the OECD-FAO summary of the ‘Agricultural Outlook 2013-2022’ report, key uncertainties remain in terms of the outlook for Chinese agricultural trade: these relate to the sustainability of current growth rates and the impact of climate change.

Michael Boddington from Asian Agribusiness Consulting (AAC) has been involved in agribusiness in Asia since 2000. AAC has office both in Vietnam Ho Chi Minh City and China Beijing. So AAC has a thorough understanding of the Viet Nam and China aqua industry and produces up-to-date research reports on the market. We can offer insights on supply and demand trends and comments on the future structure of Asian agribusiness. If you would like to know more please email  michael@boddingtonconsulting.com 

Sources:
OECD-FAO, ‘Focus on China – OECD-FAO Agricultural Outlook 2013-2022’, 2013
 http://www.oecd.org/site/oecd-faoagriculturaloutlook/china-2013.htm
OECD-FAO, ‘Agricultural Outlook 2013-2022’, summary, 2013
 http://www.oecd.org/site/oecd-faoagriculturaloutlook/summary-2013-EN.pdf