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China Corn & Corn Processing Products Market Review & Outlook Proposal 2007/2008
Beijing Orient Agribusiness Consultant Ltd, Feb 2008


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China is one of the main producing countries of corn in the world, the national output stood at 146 million tons in 2006/07 cropping year, and the acreage enlarged under the influence of high planting returns in 2007. Yield decreased due to weather conditions in the Northeast in 2007, while yield improved in other main producing areas in the Yellow River and the Huai River Valley returns. The total yield is foreseen to keep the same level with 2006/07 cropping yea last year around 146 million tons, making up 20% of the world total.

Domestic corn consumption takes feed and industrial use as main consumption channel, amounting to 85% of the total domestic consumption. Corn supply and demand relation will affect the feed industry and the development of further corn processing. The report looks at whether corn consumption in feed industry greatly affected the sharp growth of pork price in May, 2007.

China witnessed a fast growth of further processing of corn in 2007. Further processing of corn starch, corn ethanol, disnatured starch and starch sugar sustained rapid growths. Competition of corn further processing intensified, and there were constant occurrence of mergers and reorganizations among companies. Due to the fast growth in domestic corn ethanol industry China implemented relevant policies to restrain corn export and corn further processing.

How shall the supply and demand relation change in 2007? How will the supply and demand relation affect the feed industry and the development of further corn processing? Whether the drastic growth of domestic corn consumption will result to primary changes of the corn supply and demand relation? How will international corn supply affect the domestic market? How shall the Chinese corn industry develop in 2008? What shall be the trend of corn further processing in 2008? How shall the market structure and product structure change? How shall the Chinese corn further processing market face competition from the international market? What strategies should a corn further processing company adopt in order to be a leading player in the industry? … ALL these issues should be addressed systematically.

Based on analyzing the national corn market and further processing market in 2007, this report has certain forecasts on the two markets in the future.


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