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Special Report on China’s Wheat Market Proposal
Beijing Orient Agribusiness Consultant Ltd, March 2008, Pages: 120
Since the 16th CPC National Congress issues concerning agriculture, countryside and farmers have become the focus of economic work. Food production has become a priority to ensure food security. Top leaders of the Party and State have paid great attention to wheat production and that is why Chinas wheat production has reaped good harvests for four years in a row. The 17th CPC National Congress once again highlighted three rural issues and food security issues.
Nevertheless, the second half of 2007 saw the rapid dollar depreciation. International agencies predicted strained supply of agricultural products, leading to the global surge in the prices of agricultural products, particularly the international price of wheat. The domestic price of wheat also tumbled. Wheat and flour witnessed a sharp short-term rise in their prices. Wheat processing industry experienced a tremendous impact, while domestic economy witnessed structural inflation.
To prevent the overall inflation, on December 7th, 2007, the new central leadership pointed out, at the central economic work conference, the need to implement tight monetary policies to control macro-demands. We must focus our efforts on agricultural production, and increase the availability of food. At the same time, it was pointed out that we should vigorously develop modern industrial system, accelerate the formation of new edges for competition on the basis of scientific and technological progress and innovation, contain the excessive growth of sectors with high energy consumption and high emissions, eliminate backward production capacities, promote the orderly flow of factors of production, guide the rational distribution of industry and improve coordination of regional development.
Faced with the current macroeconomic situation, national policy guidance and fierce competition in the wheat processing industry, where are Chinas wheat industry and wheat products heading for?
For two consecutive years, flour and wheat flour prices rose sharply. Does China have adequate wheat supply? Is wheat supply sufficient in 2008? How will wheat supply evolve for the next 5-10 years?
Given a series of national policies, what is the wheat processing industry faced with? What is the trend for the next 5-10 years?
BOABC organized working groups of industrial experts to conduct a series of investigations among enterprises at the grass-root level and obtained a series of detailed first-hand data sets. Their forward-looking expositions of the industry provide reliable reference for relevant enterprises, government decision-making bodies and relevant research institutions.
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