China's Corn Production Belt Adjusts to Soaring Imports

Home>>Business

Last updated at: (Beijing Time) Tuesday, August 20, 2002

China's Corn Production Belt Adjusts to Soaring Imports

DISCUSSION

CHINESE

SEND TO FRIEND

When he heard about the use of advanced equipment to test the oil and starch content of corn, Liang Shuhua, a peasant from northeast China's Jilin Province, replaced all old corn crops on his small farm with an oil-rich new breed.

New measures in the purchasing of corn this year also include setting prices according to quality.

"I'm afraid we can't earn much if we continue to grow the old variety," said Liang.

Many peasants in Songliao Plain, one of the world 's top three "gold corn belts", shared Liang's view.

Although they have no idea about how much the improved variety will increase their harvest, peasants believe government encouragement and business orders will, in the long run, enable them to put an end to high-yield, but low-value crops.

The corn production zone on Songliao Plain, where about one third of China's corn was grown before the 1990s, has been hard hit in recent years.

The corn produced on the plain has lost market share to cheaper imported rivals in the south, while still tougher competition lies ahead.

China has ended corn production subsidies and promised to fulfill its commitment to increase imports after its entry into World Trade Organization.

Under the commitment, China will raise its import quota to 5.95million tons this year, equal to 10 percent of the country's annual corn production.

"The only way is to improve the quality of the corn and increase our knowledge of the plant we have dealt with for many years," said Jilin Governor Hong Hu at the ongoing 2002 Changchun international agriculture fair.

In recent years, the blind pursuit of quantity among Chinese peasants led to a neglect of quality. That was made worse by the failure of higher quality corn to fetch higher prices in the market.

Local authorities in northeast China have been spreading new varieties with shorter growing periods and high protein and starch contents since 2000.

Jilin Province has tightened its purchasing and storing standards this year, demanding the water content of the purchased corn be kept below 23 percent.

The province also encourages peasants to grow corn on a contract basis with grain processing or export enterprises.

Peasants should ensure the variety, quality and growing areas to meet the enterprises' requirements while enterprises are required to provide production guides, stable prices and quick and good purchasing services for the peasants.

However, this is just the first step, according to experts, and much more needs to be done to process and transform corn into products of higher added value.

"The future of corn farming lies in the development of the processing industry," said Zhang Shihuang, an expert with the corn research department of the Chinese Academy of Agricultural Sciences.

The province is planning to establish groups of major enterprises relying on new and high technology to process and transform corn to high-tech products like absolute alcohol, metamorphic starch, starch sugar and degradable plastics.

Experts suggested livestock farming be used as one of the shortcuts to dispose of the unmarketable corn. It is estimated that the added value of corn can rise to five times more than its original value after its transformation in stock raising.

Questions?Comments? Click here

US Giant to Expand Potato Production in China

Commentary: Taiwan Independence No Easy Thing ( 13 Messages)

FM Spokesman Rejects Al-Qaida Contacts Allegation ( 9 Messages)

China's Exports Hit Record of US$56.2 Billion in July ( 10 Messages)

Fourth Unmanned Spaceship Set to Roar by Yearend ( 10 Messages)

China's On-going Reform Calls for Better Economic Illumination ( 2 Messages)