The NDRC issued a notice emphasizing grain and fertilizer production. (Image source: Adobe stock)
[See China March 20, 2022 News](See a comprehensive report by Chinese reporter Wenlong)ChinanationDevelopment and Reform Commissionissue a notice, emphasizingfoodandsoybeanand oil production, and request to stop productionfertilizerEnterprises resume production as soon as possible.Highlighting China’s Food Crisis and Fertilizer Supplycrisisand these alsoRussian-Ukrainian Warrelated.
Development and Reform Commission issues notice to emphasize grain and fertilizer production
On March 19, according to the official media “China Securities Journal”, China’s National Development and Reform Commission issued the “Notice on Further Doing a Good Job in the Production of Important Agricultural Products such as Grain and Soybeans” (referred to as the “Notice”).
The “Notice” requires that all efforts should be made to stabilize the sown area and output of grain, implement the expansion of soybean oilseeds, and promote the production of chemical fertilizer enterprises that have stopped production as soon as possible to resume production and reach production.
The “Notice” stated, “We insist that the Chinese people’s rice bowls must be firmly in their own hands at all times, to ensure that the sown area of grains is stable and the output remains above 1.3 trillion kilograms.”
The “Notice” also shows that the main winter wheat producing areas such as Huanghuaihai should focus on dealing with adverse effects such as late wheat sowing; the northeast region should coordinate the relationship between soybean and corn; the southwest region should focus on expanding the area of corn planting; the northwest region should strive to stabilize and Expand the area of spring wheat and increase grain output.
It is worth noting that the “Notice” proposes to ensure the supply of chemical fertilizer production factors, to promote the shutdown of enterprises to resume production as soon as possible, to achieve production, and to improve the production and start-up level of enterprises as much as possible.
The National Development and Reform Commission (NDRC) of China is a constituent department of the State Council. Because of its wide scope of responsibilities, as a macro-planning and comprehensive economic management department, the National Development and Reform Commission plays an important role and plays the role of “economic cabinet” to a certain extent. Called the “Small State Council”.
China faces food and fertilizer supply crisis
The “Tianjun Zhengjing” team pointed out that soybeans are involved in many uses and can be used to produce soybean oil and soybean meal. Soybean meal can be used as pig feed, egg poultry, broiler chicken feed, beef cattle and other feed as well as soybean protein. Soybean oil as well as rapeseed oil and palm oil can be used as edible oil and industrial oil. Soy lecithin is widely used in confectionery industry, medicine, papermaking and leather making. Including making lubricants, building materials, foaming materials and so on.
Corn is also widely used, converting corn starch into aminopenicillic acid, which is the raw material of penicillin, amoxicillin and other drugs. Corn also involves corn edible oil, corn fiber feed, corn gluten meal, bio-natural gas, cellulosic ethanol, ethanol industry chain, etc.
As can be seen from the NDRC document, many sectors of the Chinese economy are facing a supply crisis.
According to a report by Reuters on March 14, the Russian coal and fertilizer king Andrei Melnichenko said the war between Russia and Ukraine is a tragedy and must stop or there will be a global food crisis because fertilizer prices are already too high for many farmers.
“The events in Ukraine are truly tragic and we desperately need peace,” Melnichenko, 50, said in an emailed statement. He is Russian but was born in Belarus to a Ukrainian mother.
On March 11, a report released by the United Nations Food and Agriculture Organization (FAO) showed that in 2021, Russia will be the world‘s largest exporter of wheat, accounting for 18% of global exports. Ukraine is the fifth largest exporter of wheat, accounting for 10% of global exports.
In the sunflower oil market segment, Russia and Ukraine have a world share of nearly 64%.
In 2021, Russia is the world‘s largest exporter of nitrogen fertilizers and the second largest supplier of potash and phosphate fertilizers.
In the past two years, the UN benchmark index has increased by more than 40%, underscoring the growing problem of food security.
According to the Voice of America report, Qiu Wanjun, a professor at the Department of Finance at Northeastern University in Boston, said that according to data from the China Center for International Economic Exchanges, China’s grain independence rate is currently about 76%, compared with 100% 20 years ago. According to the report of the State Council of China at the end of 2019, the agricultural land used for cultivation in China continues to decrease. Now that the Russian-Ukrainian war has led to high global food prices, China has to go to the international market to buy food.
If the Russian-Ukrainian war is the external cause of China’s food crisis, then the loss of China’s arable land is the internal cause. Luo Qingsheng, executive director of the Taiwan Institute for International Strategy, said that the per capita arable land in mainland China is only 1.4 mu, less than half of the world average, and only one-third of the world‘s per capita arable land. Mu cordoned below.
At the end of February, the General Administration of Customs of China announced that it would open up the import of wheat from all over Russia, but there is a problem of smut infection in Russian wheat. If China wants to solve the problem of food shortages in the short term, it should find a stable overseas food supply chain and sign food purchase agreements with countries with stable food production sources and low pests and diseases, so as to alleviate China’s food crisis.
Responsible editor: Xin He Source: look at China
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