Top Ten Grain Economic News in China in 2015

On January 22, the State Council issued some opinions on establishing and perfecting the responsibility system of provincial governors for food security, clarifying the responsibility system of provincial governors for food security.

On January 22, the State Council issued several opinions on establishing and improving the responsibility system of provincial governors for food security, which further clarified the powers and responsibilities of provincial people's governments in safeguarding national food security from the aspects of grain production, circulation and consumption, and made comprehensive arrangements for establishing and improving the responsibility system of provincial governors for food security.

Read deeply: the promulgation of the "opinion" has adjusted the "responsibility system" for grain security to the "responsibility system" for the provincial governor of food security, and achieved a new breakthrough in straightening out the grain circulation management system. it has laid an important institutional foundation for comprehensively deepening the reform of grain circulation and comprehensively promoting the administration of grain according to law.

On November 12, the General Office of the State Council issued the measures for the assessment of the responsibility system for provincial governors on food security. The main contents of the assessment include: ensuring the continuous enhancement of grain sustainable production capacity, protecting the enthusiasm of growing grain, implementing local grain reserves, ensuring the basic stability of grain market supply and prices, strengthening the prevention and control of cultivated land pollution, and implementing the duties and tasks of agriculture, grain and other relevant administrative departments.

The "examination method" not only defines various responsibilities, but also strengthens the supervision and assessment of provincial governors. For those who are seriously affected by failure to perform their duties and major work mistakes, the relevant responsible persons shall be investigated in accordance with the law and discipline to ensure that the "opinions" are implemented quickly and effectively.

After the "opinions" and the "assessment measures" were issued, Anhui, Hubei, and Guizhou provinces successively formulated their own "food security assessment measures"; Shandong, Hebei, Hunan and other provinces also successively held provincial government executive meetings to study and implement the "detailed rules for the implementation of the provincial governor responsibility system for grain security." It provides policy guidance for comprehensively implementing the balance between the occupation and compensation of cultivated land, stabilizing total grain production, stabilizing grain prices, alleviating farmers'"difficulty in selling grain", protecting the enthusiasm of grain farmers, and improving the level of grain emergency security.

On February 1, 2015, the Central Committee's "No. 1 document" was released, bearing the brunt of food security.

On February 1, 2015, the No. 1 document of the Central Committee was officially released to the public. The document said that after the economy has entered the new normal, how to innovate agricultural support and protection policies, speed up the mode of modern agricultural development and improve agricultural competitiveness under the "double squeeze" has become the key to break the situation of China's agricultural development. it is necessary to strengthen the policy preference to the major grain producing provinces and counties. Continuously enhance grain production capacity, enhance grain collection and storage capacity, improve the quality and safety of agricultural products, and constantly improve the price formation mechanism of agricultural products have become the highlights of the grain industry.

Read deeply: "document No. 1" has locked in the issues of "agriculture, rural areas and farmers" for 12 years in a row, reflecting the confidence and determination of the central authorities to properly solve the problems of agriculture, rural areas and farmers as the top priority of the work of the whole party. Different from previous years, document No. 1 in 2015 proposed for the first time "strengthening the research, safety management and scientific popularization of agricultural genetically modified biotechnology", requiring the research and utilization of genetically modified biotechnology on the premise of ensuring safety. it reflects China's cautious and cautious attitude towards the application of transgenic technology in grain and food.

Document No. 1 also responded for the first time to the question of excessive domestic grain imports. Among them, "scientifically determining the self-sufficiency level of major agricultural products" means not pursuing excessively high and low self-sufficiency rates and preventing the two extremes, but should be determined according to the characteristics of domestic resource endowments and the actual level of production. The supply of important food crops should be satisfied in quantity, and we should not rely on imports to ensure the "absolute safety of food rations" and the steady implementation of the food security strategy.

The security of grain is the consolidation of the country. On January 7, the website of the Ministry of Agriculture announced that China will launch a strategy to turn potatoes into staple foods such as steamed bread, noodles and rice noodles as the fourth staple food in China. After the implementation of the main grain strategy, the potato industry has sprung up, potato cake, almond cake and other products are dazzling, and enterprises began to build potato noodles and stone flour production lines. As an important supplement to food security, potato is conducive to the smooth implementation of the national food security strategy under the new situation.

In addition, the newly promulgated National Security Law of the people's Republic of China on July 1 also brings food security into the scope of national security issues. This is the first time that China has incorporated food security into the national security system, and food security has been placed after financial security, highlighting the importance of food security in national security governance.

During the Spring Festival in February 2015, the event of Chinese people snapping up "Japanese sky-high price rice" aroused heated discussion.

During the Spring Festival in 2015, Chinese mainland travelers went on a buying spree for Japanese rice, with some spending nearly 1500 yuan on 5 kilograms of Japanese rice. This is another incident of snapping up Japanese goods after snapping up Japanese rice cookers and toilet seats. In fact, this is just a sequel to the Chinese snapping up the sky-high price of rice in Japan. In July 2007, China resumed importing Japanese rice, and Japanese imported rice whose price was more than 20 times the domestic price was snapped up.

Deep reading: behind the crazy robbery of Japanese rice, there is such a fact: first, domestic rice is facing a crisis of trust in terms of quality; second, domestic rice is at a disadvantage in international competition and has been eliminated.

Experts believe that the main reason why domestic rice is left out in the cold is not because of its poor quality, but because people have questioned the safety of domestic grain. In addition to the reasons why domestic rice is not trusted in quality, the domestic rice market is still dominated by bulk rice, and the lack of a strong rice brand is also one of the reasons. There is a serious vacancy at the high end of the market, resulting in the gradual decline or elimination of some household names.

What is gratifying is that some rice enterprises in China have realized that the combat mode of scattered soldiers will eventually be eliminated in the competition, and keeping warm together is the effective weight for rice enterprises to break through the predicament. On October 25, the 2015 Jilin rice new rice listing conference was held in Beijing. In order to create the "platinum business card" of Jilin rice, Jilin Province has set up a rice industry alliance in the province, the newly unveiled alliance enterprise products are uniformly marked with the logo of "Jilin rice", and the brand construction of "Jilin rice" officially sounded the "assembly number". Meticulously build the main brand of "Jilin rice".

On April 17, Liaoning and Jilin provinces were exposed to the incident of "using old grain to top new grain, maliciously capturing price differences and state subsidies".

In mid-April, Liaoning and Jilin provinces exposed the incident of individual grain depots "using old grain to top up new grain, maliciously capturing price differences and state subsidies" in the process of policy grain collection, storage and sale. On 18 April, the State Grain Administration sent a verification team to Kaiyuan in Tieling, Liaoning Province, and Qianguo in Songyuan, Jilin Province to carry out on-the-spot inspection, on-site supervision, immediately sealing and storing the grain involved, controlling the key people involved in the case in accordance with the law, and finding out the truth of the problem. we will seriously investigate the responsibility of relevant enterprises and personnel. At the same time, it has also conducted a strict investigation on various "circular grain" problems in the process of national policy grain collection, storage and sale in three provinces and one region in Northeast China, such as the purchase of old and new, the first harvest and then transfer, low income and high transfer, and so on. The rapid response of the State Grain Administration illustrates China's high-handed situation of cracking down on violations of law and discipline in grain purchase, storage and other fields.

Read deeply: coincidentally. In early November, at the Baidian Depot site of the Baidian Grain and Oil Purchasing and Marketing Company in Huangchuan County, Henan Province, there was a "human grain" incident in which grain depot staff collected good treatment fees from grain farmers, once again pushing the issue of grain collection and storage to the forefront of the wind and waves.

Problems such as bumper harvests in successive years, sustained unilateral increases in prices supporting the market, and the low rate of storage at auction have caused some major grain producing areas to fall into the predicament of "unable to sell, adjust and sell" grain, and grain stocks have reached an unprecedented level. The staff of individual warehouse sites take advantage of the warehouse capacity to collect good treatment fees from grain farmers, which not only harms the interests of farmers, but also greatly discounts the national policy of benefiting farmers. On November 13, an investigation team was set up in Henan Province to thoroughly investigate "human food". Three social workers were detained and a number of government workers were held accountable.

After the "human grain" storm, the Xinyang municipal government, in view of the phenomenon of "difficulty in selling grain", actively adopted measures such as being recommended by local governments and guaranteed by guarantee companies, making use of social storage capacity to participate in policy acquisitions, increasing storage points, and other measures to resolve farmers'"difficulties in selling grain."

On May 7, Bright Food Group and Liangyou Group jointly reorganized to strengthen the "big brand".

On May 7, the Shanghai State-owned assets Supervision and Administration Commission issued a notice on the joint reorganization of Bright Food Group and Shanghai Liangyou Group. The joint restructuring of Bright Food Group and Liangyou Group has produced a "1-1 > 2" effect, which increases the capital to compete directly with Cofco in terms of volume and plate coverage.

Deep Reading: this year is not the first time that Guangming and good Friends have been reorganized to achieve a strong combination of resources. On April 30, Tianjin established Tianjin Food Group Co., Ltd., integrating four major groups, namely, Land Reclamation Group, Ershang Group, Grain and Oil Group and Lida Group. After the reorganization, Tianjin Food Group has further enhanced its ability to guarantee food supply, enhance the market influence of famous and high-quality brands, expand the supply area and service scope, and ensure the food safety of residents; it has laid the foundation for building a leading group of state-owned food industry with excellent brand, good benefit and people's peace of mind.

In recent years, under the influence of the current economic environment, market demand and other factors, grain enterprises have some problems, such as difficulty in financing, weak competitiveness, single business model, lack of self-accumulation and so on.

M & An is an important way to invigorate enterprises, invigorate assets and enhance competitiveness. The joint reorganization of Guangming and Liangyou and the establishment of a food group in Tianjin is of positive reference significance to promote the development of grain enterprises in the direction of collectivization, scale and industrialization, and to cultivate a batch of big grain and big food with international competitiveness. it also provides a new idea for reversing the current situation of "small, scattered and weak" grain enterprises in China and strengthening the "big brand".

On June 15, the three ministries issued the Construction Plan of the Grain Collection, Storage and supply Security Project (2015-2020) to meet the six major challenges of food security.

On June 15, the National Development and Reform Commission, the State Grain Administration and the Ministry of Finance issued the Construction Plan of the Grain Collection, Storage and supply Security Project (2015-2020). This is the first national special plan for the construction of grain circulation infrastructure. It is required to comprehensively enhance the ability to ensure the security of grain collection, storage and supply, maintain the bottom line of grain circulation that "grain can be sold and eaten," maintain the basic balance between grain supply and demand and basic stability in grain prices, and promote the increase of grain production, farmers' income and the modernization of grain circulation. to ensure national food security.

Deep reading: at present, China's grain storage capacity is seriously insufficient, the logistics channel is not smooth, the emergency supply capacity is weak, the hidden danger of quality and safety is large, the grain situation monitoring and early warning lags behind, and the postpartum loss is serious and wasteful. It has become a fetter to maintain national food security and brought severe challenges to national food security to the extent that it has to be changed.

According to the arrangement of the State Grain Administration, the current grain storage problems are mainly focused on: insufficient storage capacity in major grain producing areas, "grain storage with disease" in old warehouses in some areas, lack of safety grain storage equipment and backward technical measures in some enterprises. in particular, there are hidden dangers such as fire safety in a considerable number of open-air and simple storage facilities in Northeast China and Inner Mongolia Autonomous region, as well as the risk of condensation and mildew in autumn. In some areas of the south, the grain temperature of the grain stored in the shed outside the warehouse continues to be on the high side, and it is difficult to control pests and molds; in addition, some grains are stored beyond the time limit.

The "Plan" puts forward six major construction tasks, such as building grain and oil storage facilities, opening grain logistics channels, improving the emergency supply system, ensuring grain and oil quality and safety, strengthening grain monitoring and early warning, and promoting grain conservation and loss reduction; and to strengthen the responsibility for food security, the provincial government is responsible for the construction of grain collection, storage and supply security in the region into the grain security governor responsibility system.

As an important basis for the construction of China's grain circulation infrastructure in the future, the "Plan" provides policy reference and institutional guarantee for the improvement of China's grain circulation facilities, ensuring grain collection, storage and supply, strengthening the ability of macro-control of grain, and ensuring military supplies and food for the people.

On July 16, General Secretary Xi Jinping pointed out during his inspection and research in Yanbian, Jilin Province: "Grain should also be branded."

On the afternoon of July 16, General Secretary Xi Jinping came to Guangdong Village, Dongcheng Town, Helong City, Yanbian Korean Autonomous Prefecture, Jilin Province. At the largest rice base in Yanbian, known as the "Pinggang Oasis," Xi Jinping had a cordial conversation with working villagers and agricultural technicians. Xi Jinping said: China has a population of 1.3 billion, and we have to rely on ourselves to stabilize grain production. Grain should also be branded, so that the price is good and the benefit is good.

Reading deeply: "Grain should also be branded" is not only the general secretary's suggestion on the future development direction of the grain industry, but also the ardent hope for China's grain to build domestic and international famous brands.

Since Thailand first became the world's largest rice exporter in 1979, it has won the championship for more than 30 years in a row, thus winning the title of "world rice warehouse". In addition to the reason of quality, the brand is also an important reason for Thai rice to become "world rice".

Compared with Thai rice with clear positioning and stable output, domestic rice with good quality, little fame and low competitiveness is a reflection of the lack of brand building for many years. At the same time, we can also see that although the price of brand food on the market is not cheap, there are still a lot of fans. Japan's nearly 150 yuan / jin of rice has been looted, Thailand's fragrant rice outshines others in the world, and so on, are the best examples. The reason is that consumers are more rational when buying goods, not only pay attention to the functional value of quality, taste and nutrition, but also pay attention to the psychological satisfaction brought by the brand.

Practice has also proved that a brand is not only a single tangible and intangible asset, but also means market share and public recognition, as well as higher profits brought by premium. To do a good job and expand the grain brand is the only way for China's grain to go abroad and participate in international competition, which has become the consensus of the grain industry.

On September 17, the relevant state departments issued a notice on lowering the price of corn collection and storage to 1 yuan per jin, and the grain policy was further adjusted and improved.

On September 17, the relevant state departments issued a notice related to the temporary storage of corn in 2015, lowering the price of corn collection and storage to 1 yuan / jin. On November 2, the Ministry of Agriculture announced the guidance of the Ministry of Agriculture on the structural adjustment of corn in the "sickle bend" area, striving to stabilize the corn planting area in the "sickle bend" area at 100 million mu by 2020, more than 50 million mu less than at present. Promoting the structural adjustment of corn in the "sickle bend" area is an effective way to promote the sustained and stable development of corn production on the premise of ensuring the basic self-sufficiency of grain.

Deep Reading: in order to achieve the food security goal of "basic self-sufficiency of grain and absolute security of food rations", the National Development and Reform Commission issued a message on October 10 that "the government will continue to implement the minimum purchase price policy in major wheat producing areas in 2016." With the approval of the State Council, the minimum purchase price of wheat (third-class) produced in 2016 is 118 yuan per 50 kilograms, keeping the 2015 level unchanged. On October 15, the "opinions of the CPC Central Committee and the State Council on promoting the Reform of the Price Mechanism" were issued, calling for the continued implementation and improvement of the minimum purchase price policy for rice and wheat.

The prices of the two staple grain varieties, wheat and rice, remain unchanged on the basis of comprehensive consideration of grain production costs, market supply and demand, domestic and foreign market prices and the development of the grain industry. it plays a positive role in promoting and ensuring the smooth implementation of China's food security strategy.

In June, the State Grain Administration and other departments issued the Circular on doing a good job in the purchase of rapeseed in 2015, deciding to abolish the temporary collection and storage policy of rapeseed from 2015, and that local governments should be responsible for organizing all kinds of enterprises to purchase rapeseed. The central government will provide appropriate subsidies to major rapeseed producing areas and continue to support the development of oil industry in various localities through incentive policies for major oil-producing counties. At this point, the temporary collection and storage policies of soybean, cotton and rapeseed have all been cancelled, and the price reform has been further pushed forward. In early December, Heilongjiang and Jilin provinces "soybean target price reform pilot work implementation plan" was approved by the state.

The intensive adjustment of grain policy reflects that the state is gradually straightening out the relationship between the government and the market and reducing government intervention in the grain market. Moreover, the adjustment of the market support policy will help to change the formation mechanism of the grain price market and guide farmers to adjust the grain planting structure according to local conditions.

On November 23rd, Cofco tried the water "Internet +", and the "Grain access Network" was launched.

On the morning of November 23, the Grain access Network was launched. This is an electronic grain trading platform created by the injection of 300 million yuan by Cofco and China Merchants Group. With the help of "Grain access Network" financial services for corn procurement, the number of liquidity turnover can be accelerated from the traditional 3-4 times / year to 8-10 times / year. At present, the raw grains that have been put online are corn, wheat, rice, soybeans, palm oil, barley, sorghum and so on.

Read deeply: the agricultural and grain industry is the lowest-level industry among the three industries. because of its weak foundation and poor information, it has become the furthest industry to embrace the Internet, but the potential market space of the whole industrial chain is nearly 10 trillion. The trial "Internet +" of Cofco can effectively solve the pain points in China's agricultural and grain trade industry, such as asymmetric information, inconvenient transaction, low logistics efficiency, lack of performance guarantee, lack of working capital and so on.

While actively testing the waters of "Internet +", Cofco has also accelerated the layout of global industrialization.

Cofco International Co., Ltd., a subsidiary of Cofco Group, bought a 49 per cent stake in Cofco Noble Agriculture for $7.5 billion. Cofco Noble Agriculture changed its name to Cofco Agriculture and became a wholly owned subsidiary of Cofco Group.

Cofco's acquisition of Noble and the trial of "Internet +" are only a solid step for Cofco to take "innovation and change, promote resource integration to optimize asset layout and enhance profitability". On February 13, the pilot reform plan of Cofco was approved by SASAC. As the target of the first batch of national pilot reform of central enterprises, Cofco is expected to accelerate reform and improve efficiency and vitality in the future.

On December 8, the National Bureau of Statistics released data on the country's total grain output in 2015. China's total grain output ushered in the "twelve consecutive increases".

According to data from the National Bureau of Statistics on December 8, in 2015, the country's total grain output was 621.435 million tons (1.24287 trillion jin), an increase of 14.408 million tons (28.82 billion jin) or 2.4 percent over 2014, ushering in the "12 consecutive increases" of grain.

Read deeply: the country puts grain first. Under the background of great downward pressure on the domestic economy and a possible rebound in international grain prices, another bumper grain harvest in China this year is of great significance to the smooth operation of the economy and society.

However, the problems behind the bumper harvest also need to be paid attention to. With the continuous increase in output, China's grain depots are suffering from a serious "bloated disease". The State Grain Administration has previously used two "unprecedented" to describe the current new high of grain stocks. Once the stored grain exceeds the safety factor, it will not only bring a great burden to the national finance, but also the phenomenon that "grain is expensive and harms farmers".

In contrast to the continuous increase in grain and the surge in stocks, China's three major staple grains have been net imports for five consecutive years. Statistics show that China's grain imports exceeded 100 million tons for the first time last year. The three major cereal varieties of rice, wheat and corn have been imported net for five consecutive years, while the import of corn substitute sorghum and DDGS (corn lees protein) has also increased greatly in recent years.

On the one hand, the "domestic grain warehouse" under "Twelve Lianfeng" is full, and on the other is another 100 million tons of low-priced food rations. The upside-down of domestic and foreign prices highlights the backward situation of China's agricultural competitiveness and tightens the nerves of grain policy adjustment.

Only when the grain reform changes from the demand side to the supply side can it adapt to the new normal of grain production in our country. On November 3, the proposal of the CPC Central Committee on the formulation of the 13th five-year Plan for National Economic and Social Development was issued, recommending for the first time the implementation of a system of cultivated land rotation and fallow in some areas, in order to alleviate the serious overdraft of water and the pressure on land resources. The pilot project of land rotation and fallow enables the land that has worked hard for thousands of years to rest, which plays a very important role in restoring soil fertility, adjusting the balance of food supply and demand, and ensuring food security. At the same time, it is also the premise and guarantee for the implementation of "storing grain in the land and technology".