· In this regard, Chinese corn import has increased almost 5000 times over a period of 10 years, a phenomenon rarely observed in any industry worldwide.
· Local producers in the Chinese corn industry are unable to meet the growing demand, opening lucrative investment options for international players.
Ken Research has announced its latest publication on, “Research Report on China Corn Industry 2016-2020”, which provides detailed insights into the corn industry in China. The publication includes information regarding the overall import and export statistics of corn in the Chinese market. In addition, the policies formed by Chinese government to meet the increased corn demand in terms of import and local production. Furthermore, profile of leading players along with their pricing techniques are also included in the report. The research report also discusses the future outlook for the Chinese corn market.
As the export-led manufacturing industry in China grew exponentially over the past 15 years, its corn consumption also increased simultaneously. Out of the total corn consumption, only one-third is eaten directly and the rest of it utilized as a fodder or industrial raw-material. This had led to an excessive demand for corn in China. As per the statistics, China’s corn yield in 2015 was 224.58 million tons, increasing about 4.14% YoY. However, the local corn producers in China are not able to meet such a demand.
There are several factors that are limiting the overall corn yield in China. Firstly, most of the corn products are primary products whose additional value is low. Another problem in corn processing industry is the excess capacity of primary products especially starch and edible oil as well as low operating rate. Besides, as the competition among small enterprises is fierce, the whole industry awaits further integration. Thus, the Chinese manufacturers had to focus on importing the corn in order to meet their demands. Historic (2003-2012) data suggest that the import for corn grown by almost 5000 times in a period of ten years, i.e. for 1000 tons in 2003 to 5.208 million tons in 2012. Since 2010, China has become the net importer of corn. As of 2015. However, during the period of 2013-2015 the import of corn considerably dropped because of the publication of Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products by the Ministry of Commerce of the People’s Republic of China and the National Development and Reform Commission. Yet, surprisingly, by the end of 2015, the import of corn in China was reported to be 4.73 million tons, increasing almost 82% YoY.
In terms of future outlook, the demand for corn is China is expected to increase and the local supply would not be enough to meet it. By the end of 2020, China is expected to remain the largest net importer of corn worldwide. Additionally, the annual import of corn in China is expected to cross 10 million tones over the next five years. Thus, there are increased, highly lucrative opportunities for global corn manufacturers to enter the Chinese market.
The consumption of corn globally has increased significantly over the past few years. Corn, also known as maize, was initially primarily cultivated for eating purpose. Various types of corn include sweet corn, pod corn, popcorn, waxy corn, flint corn, flour corn and dent corn. However, with increasing industrialization and urbanization, corn is now used worldwide as both fodder and as a raw-material for many industries. Globally, the US is the largest producer of corn. On the demand side, China is the largest net grain importer, with corn being the highest in terms of volume.
Some key factors governing the corn industry worldwide include:
· Increasing industrialization
· Increasing urbanization leading to less people engaging in agriculture in developing economies like India and China
· Increasing awareness regarding the usability of corn and its subsidiaries a cheaper alternative to raw materials currently being used in many industries.
Key Topics Covered in the Report:
– Corn production in China
– Chinese policy supporting corn growing
– Chinese policy for imported corn
– Demand in corn market in China
– Development of corn processing industry in China
– Major enterprises in corn processing industry in China
– Corn import and export in China
– Price tendency of corn in Chinese market
– Outlook of corn market in China
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