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Conflagration in Russia raises international grain prices,
is it ¡°spreading¡± to China?

Russian Premier Putin lately said that the government decided forbids the grain and the grain products outlet temporarily. These agricultural products include wheat, mix wheat, barley, rye, corn, wheat bread flour, wheat and rye mix system bread flour. Embargo's measure from August 15 will implement to December 31. The main reason is to

control the rising grain prices driven by drought and conflagration.
Since June, the Russian some areas have continued the high temperature arid weather. Grain yield is predicted decline substantially. Wheat yield is estimated to reduce by 30% approximately. That drives grain prices in Russia rising substantially ......


When profits of fertilizers will stop shrinking?

In the first half of 2010, China fertilizer cost steadily went up. Meanwhile, the situation of excess supply in the market continued. On the one hand, the production of fertilizer keeps rising. On the other hand, domestic consumption and export volume increased but still unable to release the pressure of excess supply. Prices of most fertilizer products are softening while cost is staying at a high level. That leads to the great shrink of profits in Chinese fertilizer industry.
In January to June 2010, the Chinese fertilizer production reached 33.456 million tons, up 5.2% on a year-on-year basis. The import volume reached 2.1 million tons, increase 41.7% on a year-on-year basis. The total supply in the first half of 2010 is 50.6 million tons, up 6.0% on a year-on-year basis. The consumption in the first half of 2010 is about 36.3 million tons, up 8.2% on a year-on-year basis. Export volume reached 1.76 million tons, up 37.5% on a year-on-year basis....


Low Carbon£ºmodern agriculture¡¯s way back

Part Four: an eco-industrial park¡¯s energy suppliers
In last issue, we mentioned constructing an eco-industrial park is a path to low-carbon agriculture. How to construct an eco-industrial park? We may design an energy supplier first. Energy manufacturing enterprises usually represented by straw-burning power station is the core in the eco-industrial park. We design a process of recycling straw named ¡°4F¡± which means Fodder, Fuel, Fertilizer and Feed Stock. The utility of fodder and fuel is key point in the process.
In November 2004, China's first straw burning power plant was started construction in Jinzhou City, Hebei Province. The straw power plant covers an area of 80 Chinese acres, with a total investment of 240-280 million....




Hog price going south

Hog price in last week was RMB 12.3/kg, down 1.2% compared to the top in previous week. Considering the recovery of hog supply, hog price may keep going south until September. This time, hog price rise was affected by farmers¡¯ reluctance to sell, in addition to epidemics and losses in hog production...


Egg price continues rising
In the beginning of August 2010, at the egg wholesale markets of 36 Chinese medium-sized and large cities, the average price of fresh egg is RMB 7.68/kg, up by 1.42% than the last week. In the first week of August, egg factory price is down by 1.82%. In the context of supply and demand balance, the increase of breeding cost will drive egg price up. However, high temperature led to egg consumption decline. Egg price is expected to rise recently...

Upslope rapeseed procurement price expected

The decline of rapeseed yield leads farmers¡¯ reluctance to sell. Meanwhile, China implements animal and plant quarantine to imported rapeseed, making rapeseed imports get slow. Domestic rapeseed purchase price is higher than the same period of last year. Also the expectations of rapeseed yield decrease in European Union and Canada...


Urea price upturn expected
Urea price stayed low in the first half of this year, but is predicted to pick up in the second half of this year. Urea exports are subject to low tariff for five months in the second half of this year, from July to September 15 and from October 15 to December 31. Moreover, international urea market is expected ...

BOABC estimates cotton planting area and yield
According to statistics and weather in recent, BOABC estimates Chinese cotton planting area declines to 5,428,000 hectares in 2010, up by 0.99% compared to 2009. Unit yield of cotton in China is estimated to reach 1.38 ton/ha and total yield could reach 7.492 million tons, which is 13,000 tons higher than last estimation and increase 245,000 tons compared to the previous year

Methionine capacity under expansion

Dacheng Group plans to upgrade its capacity to 500,000 MT/year in five years. In June this year, the group reached an agreement with Songyuan City, Jilin, on a 200,000 MT/year methionine project. Methionine producers have an ambitious capacity expansion plan, most projects are located in Jilin, Sichuan, Chongqing, Jiangsu and Liaoning, with total capacity 500,000 MT...


Abundant peanut supply expected in 2010/2011

Stimulated by peanut price growth, farmers have expanded peanut acreage this year. China¡¯s peanut production is predicted to rise, but the increase of consumption is less than the increase of production. BOABC presumes the peanut supply would be abundant in the year of 2010/2011. Due to planting area increase, Chinese peanut production is estimated to reach 14.3 million MT this year, 7% more than last year...


Fishmeal price at low level
In the first week of August 2010, wholesale prices of fishmeal in major ports and production province average RMB 11,433 / ton, down by 0.48% compared to last week. Serious diseases in aquaculture and rainstorm in the south impact on the demand for aquaculture feeds. But with the weather getting better and the recovery of fishery production, fishmeal price is expected...

Seesaw game between papermaking material and final
product export
With pulp prices soaring in the international market, domestic enterprises have gradually given up paper pulp imports. And domestic pulp production is gradually bouncing. At the same time, the imports of finished paper products increase substantially compared to the same period of last year...

key words :conflagration in Russia, grain prices, low-carbon agriculture, fertilizers, cheese, flavor or fragrance
Milk is no longer ¡°fragrant¡±
China¡¯s Ministry of Health (MOH) lately calls for comments on Principles of Food Flavor and Fragrance (Draft for Comments). More than 20 kinds of foodstuff including milk are banned to add food flavor and fragrance. Dairy safety becomes a society focus again. Mr. Chen

Lianfang, a BOABC analyst answered media¡¯s questions about the topic in recent.
Is it necessary to add food flavor or fragrance in dairy products like milk, fermented milk and baby formula powder?
It¡¯s no necessary indeed. Of course, I don¡¯t mean food flavor and fragrance is useless in any case. Because human has various demands for flavors and the demands are ever-changing. Natural flavor or fragrance of food .....


Cheese is a dairy product with best nutritional value and health care function, and it is widely popular in many countries in the world with good taste and diverse flavor. In countries with developed dairy industry and some developing countries, cheese occupies an important position in the residents¡¯ dietary structure. To some extent, per capita cheese consumption is an important measure of dietary quality and level in a country. In European, American and Oceanian countries, per capita cheese consumption is maintained at about 20kg. Cheese is not only a kind of nutrition, but also reflects a Western culture. Practical experience shows that, for the East Asian countries which lack dairy consumption, the Western food culture plays an important role in promoting Western residents¡¯ food consumption including cheese...



The aggressive expansion tactics adopted by foreign seed companies in China have increased concerns over the nation's food safety especially at a time when agricultural yields have been falling.
Though the situation is far from alarming, domestic seed companies need to wake up to the threat and build necessary safeguards to retain their market share, agricultural economists said on Wednesday....



1.Special Report on China's Corn Seed Market in 2010

2.Special Report on China's Seed Market in 2010

3.Research Report on Application of D70 & D90 in the Market of Formula Milk Powder for Infants in China

4.Special Research Report of China's Coffee Beverage Market 2010

5.Research Report on Wheat and Processed Products in China

6.Research Report on China¡¯s Dairy Cattle Farming Industry

7.China's Cheese Market Research


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