China's agriculture by 2020 - phase of reorientation in the cereals sector Priority of the 5-year plan up to 2020: The Chinese agriculture to more productive are, but while fully respecting the environment. Last not least will be better farmers. The Chinese agricultural policy focuses on providing secure Basic foods with emphasis on cereals and rice. To a State-guaranteed high-price policy for wheat and rice will be retained, while for feed grain one stronger orientation in the international prices will be held. In the Nov. 16, wheat prices were at $ 34.5 €/ dt. The wheat quality has suffered this year due to adverse weather conditions in 2016/17. In trade circles estimated accounted for just under 25%, which is impaired due to sprouted grains, fungal infection or other damage in the 4 major provinces in the Middle East. These goods will be accommodated with significant price reductions in the market. The official inventories when the wheat is at 105 million tonnes or 86% of the consumption estimated. The removal of this excess amount is imperative, because a substantial portion of elderly stocks are already as far as corrupt, that they are to use little more for food and feed use. The use in bioethanol plants is considered as possible into consideration. In contrast to the wheat, corn prices in the northern Chinese provinces move at 20,50 €/ German U.S. - imported goods will cost about 21 €/ dt in the ports of import, becoming increasingly less competitive compared to the domestic goods. The exchanges wheat contracts are traded on 1 to 3 €/ dt more for the. The State minimum price policy practiced a year ago at similar level as in the wheat has led to inventories of almost 50% of a corn harvest . Inadequate storage conditions reduce the quality, loss of up to 25% are suspected. Therefore, the State through cheap auctions and consumption aid from 3 to 5 €/ dt tries to reduce the stocks as soon as possible. That has contributed so far in 2013 and 2014 after details of the competent authorities when the stock vintage to a reduction of 9 million tonnes and 20%, respectively. Subsidizing the conversion of corn soy cultivation should also help to limit the production of corn. For 2016/17, extrapolating with a 9% reduction of the corn acreage in the Northern main production areas. Remain the corn surplus stocks on a still too high level of 43% of consumption. The targeted reduction will arise only over several years. Of rice in the amount of 150 million tonnes of husked goods is mostly focused on the South of China with sufficient rainfall in the order of magnitude to 1,200 mm per year. Substantial damage caused by tropical storms had to be hinge taken in the current year. The necessary import comes from the neighbouring countries. The prices are Government-guaranteed and move according to the quality between 38 to 45 €/ German Sorghum plays a relatively minor role in the amount of 3 million tonnes. The earlier higher sorghum prices are now on corn prices fallen behind. The high surplus stocks cause the Chinese grain market and price policy in the next few years to a dose control of grain production and the necessary imports of quality goods. The participation in the international grain trade will take place for the time being continue at lower level than even a few years ago.
