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  • Rapeseed Market Supply and Demand in China For 2013

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    Jesus Gozalez
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    The domestic production of rapeseeds in China is expected to increase in 2013 assuming no major natural disasters. The Ministry of Agriculture has set a goal to increase the rapeseed growing area and average output by 2015. However, there are challenges to increasing production including low returns, low mechanization, and land constraints. China uses a consignment system to purchase rapeseeds from farmers at around RMB 5000 per ton, but may increase or decrease the price depending on market conditions. China will likely import more canola due to domestic price supports, expanded crushing capacity, and approval of Australian exports. Imports are projected to be 2.5-3 million tons per year, and could exceed 4 million tons if allowed in major production regions. Canada

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    Good overview on Chinese rapeseed market.

    Original Title

    ChinaRapeseedMarket-March2013

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    The domestic production of rapeseeds in China is expected to increase in 2013 assuming no major natural disasters. The Ministry of Agriculture has set a goal to increase the rapeseed growing area and average output by 2015. However, there are challenges to increasing production including low returns, low mechanization, and land constraints. China uses a consignment system to purchase rapeseeds from farmers at around RMB 5000 per ton, but may increase or decrease the price depending on market conditions. China will likely import more canola due to domestic price supports, expanded crushing capacity, and approval of Australian exports. Imports are projected to be 2.5-3 million tons per year, and could exceed 4 million tons if allowed in major production regions. Canada

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    © All Rights Reserved
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    3 views2 pages

    Rapeseed Market Supply and Demand in China For 2013

    Uploaded by

    Jesus Gozalez
    The domestic production of rapeseeds in China is expected to increase in 2013 assuming no major natural disasters. The Ministry of Agriculture has set a goal to increase the rapeseed growing area and average output by 2015. However, there are challenges to increasing production including low returns, low mechanization, and land constraints. China uses a consignment system to purchase rapeseeds from farmers at around RMB 5000 per ton, but may increase or decrease the price depending on market conditions. China will likely import more canola due to domestic price supports, expanded crushing capacity, and approval of Australian exports. Imports are projected to be 2.5-3 million tons per year, and could exceed 4 million tons if allowed in major production regions. Canada

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    © All Rights Reserved
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    of 2

    RapeseedMarketSupplyandDemandinChinafor2013

    The10thInternationalVegetableOilandOilCropConferenceconcludedinBeijinginMarch2013,and
    coverageonvegetableoilmarketinChinawasreportedbyChinaFoodNews.Expertanalysisonthe
    supplyanddemandofrapeseedsandrapeseedoilinChinawasreported:
    Thedomesticproductionofrapeseedsisexpectedtoincreasein2013assumingtherewillbenomajor
    naturaldisastersuntilharvesttimes.Inthefallandwinterseasonsof2012,therapeseedplanning
    acreagehasincreasedby1.8millionmu(120,000ha.).Thecropisgrowingwellinmajorproduction
    provincessuchasJiangxi,Hunan,andHubei.
    MinistryofAgriculturehassetagoalfordomesticrapeseedgrowingareatoreach139millionmu(9.27
    millionha.)by2015,andtheaverageoutputtoreach138kgpermu(1/15ha.).Ifthegoalcouldbe
    reached,thetotaloutputofthecountrywouldreach20millionton.However,thereareseveralsevere
    challenges.1)Lowreturnonrapeseedgrowing.2)Lowlevelofmechanizationandproductionefficiency.
    3)Restraintsinlandresources.
    Chinahasadoptedaconsignmentpurchasingsystemfordomesticrapeseedproduction(i.e.trading
    companiesorcrushersbuyingfromfarmersonbehalfofthestate).In2012,thepurchasingpriceoffered
    tofarmerswasRMB5000perton.Thestatewilllikelycontinuethispracticebutwillnotconsiderably
    increasethepricebecauseofthealreadylargegapbetweenthe(low)soybeanoiland(high)rapeseed
    oil.IfthemarketpriceisoverRMB5000,thestatemaystopthesystem.Ifrapeseedpricefallslower
    thantheproductioncost,thestatemayinitiatedirectsubsidiestofarmers.
    Chinawillseeincreasedimportofcanolabecauseofsubsidized(high)domesticpurchasingprice,
    expandedcrushingcapacitiesinSouthChina,andnewlyapprovedexportingcountry(Australia)..For
    2013andthefollowingyears,Chinasimportofcanolaseedswillbe2.5to3milliontonperyear.If
    Chinaallowsimportofcanolainthemajordomesticrapeseedproductionregions(YangtzeRiver
    reaches),thetotalimportamountwilleasilyexceed4milliontons.
    AccesstotheChinesemarkethasbeenapriorityforAlbertaanditsfarmers.Canadafacedimport
    restrictionsin2009becauseofconcernsovertheblacklegdisease(afungaldiseaseaffecting
    canola/rapeseed)butwasabletoreachanagreementtoshiptocertainportsintheNonmajor
    rapeseedproducingareas,i.e.,Liaoning,Guangdong,Fujian,andGuangxi.Onlyapprovedcrushing
    plantsintheseareascanprocesscanolaseedsfromCanada.Australiancanolanowhassimilaraccessto
    theChinamarketasCanada.

    Page 1

    JanDec
    Description
    2008
    RapeOrColza
    Seeds,Whether
    1205 OrNotBroken 715.073087

    JanDec
    2009

    HS

    1239.638881

    Sources:
    1)ChinaFoodNewspaper(March27,2013)
    2)WorldTradeAtlas

    Canada
    ExportsTotal
    toChina
    MillionsofUS
    Dollars

    Page 2

    JanDec
    2010

    JanDec
    2011

    JanDec
    2012

    663.841787 774.220059 1875.22102

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