A farmer in Central China's Hunan
Province holds a handful of newly harvested corn. [China
Daily]
|
China is becoming a net corn importer as a result
of robust domestic demand from the corn deep processing sector.
The nation's corn exports stood at 2.27 million tons in the first three
quarters of this year, down 68.3 per cent year-on-year, while imports hit 60,000
tons, up 43 times year-on-year, according to statistics from the Ministry of
Commerce.
Boosted by rising oil prices, many grain enterprises have built processing
facilities in China's major corn producing provinces. The growing capability
will drive domestic demand even higher and is likely to turn China into a net
corn importer in the coming years, insiders said.
"Corn stocks have fallen this year as a result of domestic demand," said an
official from the Ministry of Commerce, who wished to remain anonymous. "We
believe that China will become a net importer of corn in a few years."
He contributed the change largely to increasing industrial processing, but he
did not expect the change to happen in 2007 because China's corn supply still
exceeds demand.
Corn is largely used in producing fuel ethanol, sugar and animal feed.
There are over 10 corn deep processing plants in Northeast China's Jilin
Province, with a total annual processing capacity of 6 million tons, said Jiang
Jianhua, deputy general manager of Jilin-based Jiliang Group.
It is estimated that by 2008, facilities in Northeast China, the country's
major corn-producing region, will annually consume around 15 million tons of
corn.
Over 25 million tons of corn was used in deep processing in 2005 in China,
compared with 13.8 million tons in 2004. The figure jumped to 15.6 million tons
in the first half of this year.
China is now the third-largest fuel ethanol producer after Brazil and the
United States. Production of fuel ethanol and corn alcohol consumed 8.9 million
tons of corn in China last year, accounting for 44.5 per cent of industrial
consumption of corn.
Demand from ethanol makers, sugar producers and feed factories, has exhausted
some of the nation's corn stocks. An ethanol producer claimed its employees had
to go to over 100 grain depots in Northeast China for their supplies this year.
Jiang said China's exports of corn are unlikely to reach 5 million tons in
the second half of this year as previously estimated. The nation exported about
8.61 million tons of corn last year.
Meanwhile, more enterprises have begun to import corn. In July, a sugar maker
ordered 50,000 tons of corn from the United States. Experts also suggested the
Chinese Government strengthen its administration of corn processing plants in a
bid to avoid major fluctuations in demand and prices.