Dim Sums: Agricultural Markets in China

Typhoon Bolaven changed to a tropical storm and brought high winds and heavy rain to Jilin and Heilongjiang Provinces on August 28 and 29. The path of the storm is shown in the Chinese weather map below. The storm flattened large areas of the corn crop in the two provinces. A report on the storm's impact on corn quotes farmers in various parts of Jilin and Heilongjiang Provinces who report large areas of corn are completely flattened with no stalks left standing. Farmers' estimates of the impact of the storm on corn production in their areas range from 30 percent to 50 percent. We'll probably never know the true impact since Chinese authorities are on pins and needles worrying about food price inflation and unlikely to admit that the storm will affect the corn harvest. Some photos of corn fields in Jilin and Heilongjiang Provinces from Chinese news sites:

A farmer in Henan Province who claims his pigs were killed by a vaccine erected a shrine to his dead animals outside the gates of his farm to publicize his grievance against the vaccine company. The company quickly responded, offering a different side of the story. According to an article posted online , the farmer administered a vaccine for pseudorabies to over 300 of his pigs on August 1. He claims to have followed the instructions provided with the drugs and the directions of the salesman. Soon after administering the vaccine, many of the sows miscarried and other pigs died. He claims that over 200 sows miscarried, losing 2600 piglets (13 piglets per sow), and 50 others died. He claims the vaccines caused him to lose 1 million yuan. A regional manager for the vaccine company said they will compensate farmers if there are verified losses due to their vaccine. In this instance, the farmer was not able to get any compensation. The farmer says he called the phone number on the packa...

A recent article bemoans the increasing reliance on imported high-end agricultural machinery in China. Like nearly every other industry in China, the farm machinery industry has thousands of tiny manufacturers who churn out low-tech machines and knock-offs of popular products. There is little capability or incentive to engage in research and development. China's push  for high-tech methods that maximize production from its limited resource base--like precision agriculture and laser-leveling of fields--relies entirely on imported equipment--what might be called a "John Deere-ization" of agriculture. According to the article in China Comment , Chinese officials are now placing a high priority on technologies like precision agriculture, automated equipment and GPS that can raise the efficiency of agriculture. This is motivated by China's lack of land and water resources and the urgency of boosting farm output. However, Chinese farm machinery companies cannot produce th...

According to Chinese Grain Bureau statistics , the government has been the dominant buyer of grain so far this summer. This reflects the big increase in support prices this year, an apparent need to restock reserves, and relatively weak domestic demand this year. It recalls 2008-09, during the last economic slowdown when authorities bought large amounts of major crops, and seems to reflect a subtle U-turn from the privatization of grain marketing in 2004. The major crops harvested in the summer are winter wheat, early-season rice, and rapeseed. State-owned companies have been the dominant purchasers of each of these crops this year. As of August 15, state-owned companies accounted for 70 percent of wheat purchased . Wheat purchased under the minimum-price program accounted for 45 percent of wheat purchased so far this year. No wheat was purchased at the minimum price in 2011. This year's total purchase of 22.8 mmt is consistent with earlier reports that authorities wanted to ...

An essay posted on dozens of Chinese blogs this week warns that China's grain imports put the country at risk of being victimized by an American "grain war." Judging by the large number of blogs that posted it, the article apparently resonates with many Chinese people. Similar ideas regularly appear in the Chinese press and government documents. Many outsiders are oblivious to the conspiracy-drenched thinking presented in this article that guides many industry people and policymakers in China. The essay, written by a journalist named Qiu Lin, asserts that the United States uses grain as a "strategic weapon" to force other countries to do its bidding. The U.S. government, says the writer, works hand-in-hand with "American" multinational grain companies to gain control of grain markets and then uses the threat of grain embargoes to achieve its political objectives. Qiu Lin claims that "multinational grain companies like ADM, Bunge, and Cargill...

China's rainy wet weather this summer has facilitated an unusually large population of planthoppers in many areas of southern China. These tiny winged insects suck sap out of plants and lay eggs. The resulting "hopper burn" turns rice plants brown and ultimately kills them. Planthoppers on rice plants.  Source: Tangchunsheng plant protection net . In Hunan Province insect problems with the rice crop are up 30 percent this year and Hunan's planthopper infestation is said to be the worst in 20 years. Hunan officials blame the weather. They organized two massive sprayings of the crop earlier this summer, but effectiveness was limited by ineffective use of pesticides and the lack of labor since so many farmers were away working in cities. Despite these problems, Hunan officials insist their spraying will limit the effects of the bugs. A team organized to spray planthoppers in Jiangxi Province.  Source: Agricultural extension net. Big planthopper infestat...

Chinese news reports say that large portions of the corn crop in China have been hit by an unusual infestation of army worms, a type of moth caterpillar. According to the reports, the problems have been apparent since early August and are a result of heavy rains in July. The effect on Chinese corn markets is tempered by relatively weak demand. Farmers say army worms are present each year to some degree. The moisture and high temperatures in late July and August this year have been favorable for corn, but also ideal for army worms. Reports say that 30 million mu (2 million hectares) have been affected by the pests. This includes 9.9 million mu in Hebei Province, 8 million mu in Inner Mongolia, and 1.8 million mu in Jilin Province. Parts of Liaoning, Heilongjiang, Shandong and Guizhou have also been seriously affected. corn affected by army worm in northeast China. The army worm problem will affect the crop to some degree, but the effects are not as serious a...

China almost surely has the smallest farms in the world. The average family's land holding is about an acre, and many have less than that. Now Chinese authorities are trying to encourage a shift to "large farms" that are still small by standards in most countries. Like everything else in China, "large farms" are not easily described or generalized. An article by two agricultural economists in the communist party journal Qiushi explains that "large grain farms" (粮食大户) are farms of at least 100 mu (16.5 acres) in northern provinces and 30 mu (5 acres) in the south. These are what Americans would call "hobby farms," but they are considered the agricultural vanguard in China. The Qiushi article says that large farms are mechanized, integrated with processors, use high quality seeds, and are more profitable than micro farms. A survey in Hunan Province shows that there are a wide range of sizes. Hunan is reported to have 105,000 farms of at ...