Saturday, December 9, 2017

China Grain Output Up 0.3% in 2017

China produced 617.9 million metric tons of grain in 2017, according to a communique issued by the country's National Bureau of Statistics yesterday. An accompanying analysis noted that this was China's second-largest grain crop ever and explained that production growth of 0.3 percent reflected a nationwide structural adjustment campaign ordered by the communist party this year to shift crop area from corn--which has "relatively large inventories"--to minor grains and bean crops, and to expand production of other nongrain crops like peanuts and medicinal herbs. Weather was favorable--a rapid increase in temperatures came after spring planting, rainfall and sunshine were adequate, and weather remained warm near the harvest--and government officials followed orders from the communist party leadership to avert losses from floods.

Overall, grain production was up 1.5 mmt, which reflects a 3.6-mmt decline in corn output offset by minor gains in rice, wheat, minor grains and beans. The overall yield rose 1 percent as the high-yielding corn crop (6,091 kg/ha) was replaced by lower-yielding beans (1,085 kg/ha) and minor grains on land concentrated in the "sickle" region of marginal production areas running from the Russian border through the arid northwest down to mountainous regions in the southwest.

Corn production is estimated at 215.9 mmt, down 3.6 mmt from last year. The NBS report did not include an estimate of soybean output, but the accompanying analysis revealed that soybean area planted increased 8.1 percent to reach 7.8 million hectares in 2017. In contrast, the Ministry of Agriculture's CASDE report reflects a larger shift from corn to soybeans: CASDE estimated 2017 corn output at 210 mmt and includes a more aggressive 13-percent increase in soybean area. NBS thinks production of the main food grain crops, rice and wheat, remained relatively steady, with production of each rising 0.7 percent.

China grain production, 2017
Planted area
Yield
Production
1000 ha
kg/ha
1000 mt
All "grain" crops
112,220
5,506
617,907
By season:
 Summer grain
27,410
5,119
140,315
 Early rice
5,463
5,810
31,740
 Fall crops
79,346
5,619
445,852
By crop:
 Cereals
92,930
6,075
564,549
 corn
35,445
6,091
215,891
 rice
30,176
6,912
208,560
   wheat
23,988
5,410
129,774
 Beans
10,352
1,852
19,169
     soybeans
7,800
na
na
 Tubers
8,937
3,825
34,189
Source: China National Bureau of Statistics, preliminary estimates, 8 Dec., 2017.

China change in grain output, 2016-17
million metric tons
Percent
All grains
1.65
0.3
Corn
-3.65
-0.7
Rice
1.50
0.7
Wheat
0.95
0.7
Other grains
2.90
4.8
Source: China National Bureau of Statistics preliminary estimates, 8 December 2017

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