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VEGOILS-Palm oil loses more ground, USDA report eyed

Posted by Flora Sawita Labels: , , , , , , ,

* Drought woes in South America and firm demand limit losses
    * Price correction after palm oil hits one-year high on
Tuesday
    * USDA quarterly inventory report and planting forecast due
Friday

 (Updates prices)   
    By Chew Yee Kiat   
    SINGAPORE, March 29 (Reuters) - Malaysian palm oil futures
slipped for a second day on Thursday, as traders booked more
profit from a rally this week, although losses were curbed by
soybean supply fears in South America and firm export outlook
for palm oil.   
    Palm oil could not breach the psychological 3,500 ringgit
level this week, especially when market players were cautious
ahead of the U.S. Department of Agriculture's quarterly
inventory report and planting forecast due on Friday.    
    "We see that palm oil prices have come to a one-year high,
so it's not surprising that some profit-taking activities start
to kick in, especially now as we are at the end of the month,
some book squaring is going to happen," said Ker Chung Yang, an
analyst at Phillip Futures in Singapore.     
    "There could be some positioning ahead of this coming
Friday's reports. Although the market is speculating that there
could be more planted acres for corn, the reports could turn out
to be a surprise and soybean prices could subsequently be
weighed on that."   
    Benchmark June palm oil futures on the Bursa
Malaysia Derivatives Exchange closed down 0.5 percent at 3,456
ringgit ($1,127) per tonne. This week the market went as high as
3,497 ringgit, a level unseen since March 10 2011.     
    Traded volumes were thin at 20,280 lots of 25 tonnes each,
compared to the usual 25,000 lots.   
    Palm oil investors are watching closely on the acreage
battle between corn and soybean because a smaller planted area
for soybean could boost demand for palm oil, which competes with
crushed soybean oil in the vegetable oil market.    
    Malaysian export data for the first 25 days of March pointed
to an improvement in buying interest for the tropical oil
compared to a month ago, and traders are expecting exports for
the full month to end higher.     
    Market players are also focusing on Malaysia's palm oil
supply, which could be lower in March on the back of seasonality
and the effect of biological stress.
    A lower palm oil production may push up prices further as
global oilseed supply is tight especially as a drought in South
America has disrupted soybean production.   
    Oil prices held near $124 a barrel on Thursday on concerns
about the loss of Iranian oil despite the prospect of a release
of strategic oil reserves in the West and renewed promises of
additional supply from Saudi Arabia.    
    In other vegetable oil markets, the most active U.S. soyoil
contract for May lost 0.1 percent in Asian trade while
the most active September 2012 soyoil contract on
China's Dalian Commodity exchange was trading down 0.8 percent.    
       
  Palm, soy and crude oil prices at 1004 GMT
                                                                                               
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR2    3483   -17.00    3465    3500     214
  MY PALM OIL      MAY2    3465   -17.00    3451    3483    1971
  MY PALM OIL      JUN2    3456   -17.00    3445    3477   11141
  CHINA PALM OLEIN SEP2    8664   -66.00    8620    8734  241496
  CHINA SOYOIL     SEP2    9642   -74.00    9606    9722  589938
  CBOT SOY OIL     MAY2   54.57    -0.03   54.44   54.83    8184
  NYMEX CRUDE      MAY2  104.92    -0.49  104.89  105.70   16785
                                                                                               
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  Crude in U.S. dollars per barrel
 ($1=3.066 ringgit)   
   
 (Editing by Niluksi Koswanage)

VEGOILS-Palm falls below one year high, China demand supports

Posted by Flora Sawita Labels: , , , , , ,

* China may replenish food stocks, boost demand outlook
    * Prices up 9.4 pct so far this year
    * March production could be lower on biological stress

 (Updates throughout)   
    By Chew Yee Kiat   
    SINGAPORE, March 28 (Reuters) - Malaysian palm oil futures
closed down on Wednesday as traders booked profits from a
one-year high hit the previous day, although losses were limited
by news of larger food imports by China and soybean crop damage
in South America.   
    Palm oil has gained 9.4 percent so far this year with 3,500
ringgit level within striking distance although many in the
market say the run-up is too speculative.    
    Commodity traders are facing a choppy week as the focus
turns to the U.S. Department of Agriculture's quarterly
inventory report and planting forecast due on Friday.    
    "Market players are looking out for the USDA reports on
Friday. At the same time, food demand from China is quite strong
as it is replenishing its stocks," said a trader with a foreign
commodities brokerage in Malaysia.    
    Benchmark June palm oil futures on the Bursa
Malaysia Derivatives Exchange edged down 0.2 percent to close at
3,473 ringgit ($1,134) per tonne. Prices touched a
more-than-one-year high level of 3,497 ringgit on Tuesday.    
    Traded volumes stood at 20,004 lots of 25 tonnes each,
thinner than the usual 25,000 lots as investors were wary ahead
of the Friday reports.   
    A healthy demand outlook for palm oil was supported by the
latest Malaysian export data, which pointed to a moderate
improvement in exports for the first 25 days of March.
     
    Traders are expecting March exports to be higher than
February, registering a first month-on-month increase since
October last year.    
    On top of that, market players are focusing on Malaysia's
palm oil supply, as lower crude palm oil production arising from
seasonally weaker yields could push prices up further.    
    Analysts said that the effect of biological stress could
kick in soon after 12 months of a strong production up-cycle and
that could lower palm oil production.    
    Brent crude fell for a second session on Wednesday, weighed
by the possibility of a release of strategic oil reserves by the
United States and European nations.    
    In other vegetable oil markets, the most active U.S. soyoil
contract for May gained 0.1 percent in Asian trade after
China snapped up U.S. soy cargoes following tight supplies in
drought-hit south America.
    The most active September 2012 soyoil contract on
China's Dalian Commodity exchange was trading 0.2 percent lower.   
       
  Palm, soy and crude oil prices at 1015 GMT
                                                                                 
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      APR2    3495   -17.00    3495    3515     154
  MY PALM OIL      MAY2    3482    -3.00    3467    3499    3243
  MY PALM OIL      JUN2    3473    -8.00    3463    3494   11503
  CHINA PALM OLEIN SEP2    8716   -16.00    8676    8774  233098
  CHINA SOYOIL     SEP2    9702   -22.00    9670    9764  548878
  CBOT SOY OIL     MAY2   55.17    +0.07   54.96   55.35    6704
  NYMEX CRUDE      MAY2  106.29    -1.04  106.22  106.94   16520
                                                                                 
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  Crude in U.S. dollars per barrel
   
($1=3.062 ringgit)   
   
 (Editing by Niluksi Koswanage)

http://www.reuters.com/article/2012/03/28/markets-vegoils-idUSL3E8ES36Q20120328

River flowing from China dries up in India: Lawmaker

Posted by Flora Sawita Labels: , , ,

GUWAHATI, India - A major river in India's northeast that originates in Tibet has suddenly dried up, triggering speculation that China might be responsible, a local official told AFP on Thursday.

The river has its source in China's southwestern Tibet region, where it is known as the Yarlung Tsangpo, and it enters India in the mountainous and remote north-eastern state of Arunachal Pradesh where it it is called the Siang.

It descends down into the plains of adjoining Assam state, where it is vital for local agriculture, and its waters eventually become the mighty Brahmaputra, one of Asia's biggest rivers.

"It was shocking to find the Siang river drying up and patches of sand visible on its bed in a very large stretch close to Pasighat town," local state lawmaker Tako Dabi told AFP by telephone, referring to a town in East Siang district.

"We suspect the sudden drying up of the Siang could be a result of China either diverting the river water on their side or due to some artificial blockades somewhere in the upper reaches," added Dabi, an advisor to the state's chief minister.

Video footage from the scene shows the Siang - which is several kilometres (miles) wide at Pasighat, according to Dabi - reduced to flowing in several narrow channels in the large sandy riverbed.

"Locals are worried as the river is a source of livelihood," Dabi added.

There is constant speculation in the Indian media about the danger of China diverting rivers that originate in Tibet and flow into India, or disrupting their flow with hydroelectric plants.

The problem with the flow of the Siang came on the day the Chinese Foreign Minister Yang Jeichi held talks in New Delhi with his Indian counterpart S.M. Krishna.

They have decided that 2012 will be the "India-China year of Friendship and Cooperation" in a bid to overcome mutual mistrust and suspicion that continues to bedevil their relations.

The two Asian giants have an unresolved border dispute that was the cause of a brief but bloody war in 1962.

China claims almost all of Arunachal Pradesh as its own territory.

China's February palm oil stocks rise at one million tonnes

Posted by Flora Sawita Labels: , , , , , ,

China's Palm oil
China's February palm oil stocks rise at one million tonnes

REUTERS : China's palm oil stocks probably rose to nearly a million tonnes in February with a further build-up seen as traders keep buying cargoes from Malaysia and Indonesia on concern over strengthening prices, a Reuters survey showed on Thursday.

Stocks in the world's No 2 consumer of the tropical oil probably rose to 950,000 tonnes over eight months - more than double the usual 400,000 tonnes - according to a median survey of five Chinese and Singaporean trading houses polled ahead of the Bursa Malaysia Palm Oil Conference next week.

China's February imports of palm oil probably stood at 400,000 tonnes, 9.7 percent lower than 443,241 tonnes in January although these levels still reflected strong demand, the poll respondents said.

Palm oil demand has remained robust on the back of re-stocking after the Lunar New Year festival in January and survey respondents said that it could go higher as Chinese importers want to lock in cargoes before prices rise further.

One survey respondent said stocks may go up to 1.5 million tonnes before imports start to slow as China has the capacity to store the edible oil.

China is stocking up not only on palm oil but other commodities such as soybean oil and copper, the respondent added.

The country does not release official figures on stock levels.

China imported around 250,000 tonnes of palm oil from Malaysia and 185,000 tonnes from Indonesia in January, Reuters calculations on China's customs data showed.

Resilient China demand may lead to better Malaysian export numbers in March.

In February exports declined about 10 percent, cargo surveyors data showed, initially sparking fears that Asian demand for the edible oil might be slowing.

China's February palm oil stocks rise at one million tonnes

Posted by Flora Sawita Labels: , ,

China's palm oil stocks probably rose to nearly a million tonnes in February with a further build-up seen as traders keep buying cargoes from Malaysia and Indonesia on concern over strengthening prices, a Reuters survey showed on Thursday.

Stocks in the world's No 2 consumer of the tropical oil probably rose to 950,000 tonnes over eight months - more than double the usual 400,000 tonnes - according to a median survey of five Chinese and Singaporean trading houses polled ahead of the Bursa Malaysia Palm Oil Conference next week.

China's February imports of palm oil probably stood at 400,000 tonnes, 9.7 percent lower than 443,241 tonnes in January although these levels still reflected strong demand, the poll respondents said.

Palm oil demand has remained robust on the back of re-stocking after the Lunar New Year festival in January and survey respondents said that it could go higher as Chinese importers want to lock in cargoes before prices rise further.

One survey respondent said stocks may go up to 1.5 million tonnes before imports start to slow as China has the capacity to store the edible oil.

China is stocking up not only on palm oil but other commodities such as soybean oil and copper, the respondent added.

The country does not release official figures on stock levels.

China imported around 250,000 tonnes of palm oil from Malaysia and 185,000 tonnes from Indonesia in January, Reuters calculations on China's customs data showed.

Resilient China demand may lead to better Malaysian export numbers in March.

In February exports declined about 10 percent, cargo surveyors data showed, initially sparking fears that Asian demand for the edible oil might be slowing.


Pesticide in juice: Coca Cola says ok, expert says no

Posted by Flora Sawita Labels: , , ,

Edited and translated by Ye Xin

In late December, Coca-Cola Co alerted the U.S. Food and Drug Administration (FDA) that it had detected low levels of carbendazim in its own juice, as well as in samples taken from a competitor's orange juice and juice concentrate imported from Brazil.

In addition, Coca-Cola China said in a statement on its website on Jan 12 that Orange juice containing extremely small amount of the fungicide will not cause health hazards.

However, Professor John W.S. Ho from the Department of Biochemistry under the Chinese University of Hong Kong challenged the interpretation. He pointed out that the carbendazim, like other pesticides, has the greatest impact on brain and it can cause partial paralysis.

In China, this kind of orange juice Minute Maid produced by Coca-Cola is still on sale in supermarkets and stores.

Some of consumers, who bought Minute Maid said they never heard this news, some adopted an indifferent attitude and only a few of the consumers said they will never buy the drink in the future.

In late December, Coca-Cola Co alerted the U.S. Food and Drug Administration (FDA) that it had detected low levels of carbendazim in its own juice, as well as in samples taken from a competitor's orange juice and juice concentrate imported from Brazil.

In addition, Coca-Cola China said in a statement on its website on Jan 12 that Orange juice containing extremely small amount of the fungicide will not cause health hazards.

However, Professor John W.S. Ho from the Department of Biochemistry under the Chinese University of Hong Kong challenged the interpretation. He pointed out that the carbendazim, like other pesticides, has the greatest impact on brain and it can cause partial paralysis.

In China, this kind of orange juice Minute Maid produced by Coca-Cola is still on sale in supermarkets and stores.

Some of consumers, who bought Minute Maid said they never heard this news, some adopted an indifferent attitude and only a few of the consumers said they will never buy the drink in the future.

In late December, Coca-Cola Co alerted the U.S. Food and Drug Administration (FDA) that it had detected low levels of carbendazim in its own juice, as well as in samples taken from a competitor's orange juice and juice concentrate imported from Brazil.

In addition, Coca-Cola China said in a statement on its website on Jan 12 that Orange juice containing extremely small amount of the fungicide will not cause health hazards.

However, Professor John W.S. Ho from the Department of Biochemistry under the Chinese University of Hong Kong challenged the interpretation. He pointed out that the carbendazim, like other pesticides, has the greatest impact on brain and it can cause partial paralysis.

In China, this kind of orange juice Minute Maid produced by Coca-Cola is still on sale in supermarkets and stores.

Some of consumers, who bought Minute Maid said they never heard this news, some adopted an indifferent attitude and only a few of the consumers said they will never buy the drink in the future.

In late December, Coca-Cola Co alerted the U.S. Food and Drug Administration (FDA) that it had detected low levels of carbendazim in its own juice, as well as in samples taken from a competitor's orange juice and juice concentrate imported from Brazil.

In addition, Coca-Cola China said in a statement on its website on Jan 12 that Orange juice containing extremely small amount of the fungicide will not cause health hazards.

However, Professor John W.S. Ho from the Department of Biochemistry under the Chinese University of Hong Kong challenged the interpretation. He pointed out that the carbendazim, like other pesticides, has the greatest impact on brain and it can cause partial paralysis.

In China, this kind of orange juice Minute Maid produced by Coca-Cola is still on sale in supermarkets and stores.

Some of consumers, who bought Minute Maid said they never heard this news, some adopted an indifferent attitude and only a few of the consumers said they will never buy the drink in the future.

Pakistan to import two hybrid wheat varieties from China

Posted by Flora Sawita Labels: , , ,

BEIJING: Two hybrid wheat varieties developed by the Beijing Academy of Agriculture and Forestry Sciences, including Beijing Wheat No.6 and No.7, have been successfully grown in pilot areas in Pakistan, and are expected to increase local wheat production by 50 percent.

According to an intergovernmental agreement, Pakistan may start importing and growing the two wheat varieties on a large scale next month, China’s Peoples’ Daily reported.

In fact, Beijing's hybrid wheat was identified by the municipal government as internationally competitive products several years ago, but had not got a chance to be put into commercial use until recently.

The Beijing National Modern Agricultural Science and TechnologyCity, whose construction started in 2010, has conducted bold, innovative seed research with full support of China's Ministry of Science and Technology and Beijing Municipal Science and Technology Commission.

It has actively promoted the cooperation between research institutions and seed companies through the establishment of a breeding platform, an industry association, and an innovative mechanism for research project management, in hopes of building a complete innovation-driven industry chain.

At present, Beijing's seed technology transactions are growing rapidly. The city has sold 51 seed technologies for 190 million yuan since the launch of the Beijing National Modern Agricultural Science and TechnologyCity, up 250 percent from the last cycle.

Chinese face Zimbabwe deportation for eating tortoises

Posted by Flora Sawita Labels: , ,

Four Chinese men face deportation from Zimbabwe after they were arrested for killing more than 40 tortoises for meat, a state daily reported Saturday, citing a statement by an animal rights group.

The Herald newspaper said Zhang Hong Yuan, Chen Caijan, Lin Guibin and Shi Jiahua were arrested in a village in Bikita in southeastern Zimbabwe on Thursday, following a raid by the Zimbabwe National Society for the Prevention of Cruelty to Animals (ZNSPCA), the police and parks and wildlife authorities.

"When we raided the Chinese homestead, we also recovered 13 live tortoises, meat together with skeletal remains of a further 40 tortoises," the newspaper quoted SZSPCA chairman Ed Lance as saying.

"Officers were dispatched to Bikita in order to undertake investigations into the matter and charges of cruelty were laid against the four. The four men are now detained pending deportation."

The animals were kept in steel drums without water or food, the Herald said.

The tortoise is listed as an endangered species under the Convention on International Trade in Endangered Species.

Villagers who gave statements to the police said the tortoises were dropped alive in boiling water to separate the shell and the flesh.


China sets record with US soyabean purchase

Posted by Flora Sawita Labels: , , , ,

China set a record with a purchase of 2.92 million tonnes of US soyabeans, reported by exporters on Friday, two days after a Chinese delegation signed agreements in Iowa to buy millions of tonnes of the oilseed.

The agreements were signed during a visit by Chinese Vice President Xi Jinping.

China is the world's largest importer of soyabeans and regularly buys one-fourth of the US crop.

Almost all of the soyabeans in the record sale, 2.75 million tonnes, would be delivered in the marketing year that opens on September 1.

Drought has damaged the South American soya crop, so US supplies will be more vital to importers.

The sale was worth $1.36 billion, based on current prices.

The previous record for the largest sale of US soyabeans was 2.74 million tonnes, also to China, on January 27, 2011, according to data from the US Department of Agriculture.
"These are big numbers and it tells you the seriousness of China pricing," said Don Roose, analyst and president of US Commodities in Des Moines, Iowa.

He added: "That is a big number for a new-crop bean sale".

Roose said the waning soyabean crop prospects in South America and the China buying could lead to a 10 to 15 cents per bushel higher open on Friday for Chicago Board of Trade soyabean futures.
On Wednesday, a Chinese trade delegation signed agreements in Iowa to buy 8.62 million tonnes of US soyabeans, worth $6 billion.

China is the No 1 market for US farm exports with purchases that totalled $20 billion last year.

Sales are forecast to be slightly lower this year due to weaker commodity prices.

China buys 60 percent of soyabeans on the world market and nearly half of the cotton traded internationally.

Analysts believe it will become a sizeable corn importer in the near term.


New Zealand halts farm sale to China's Shanghai Pengxin

Posted by Flora Sawita Labels: , , , ,

A New Zealand court has blocked a move by the government to allow Chinese investors to buy farms in the country.

China's Shanghai Pengxin was looking to buy 16 farms spread across almost 8,000 hectares in the country's North Island.

Justice Forest Miller of High Court in Wellington has asked the government to reconsider its decision saying it had overstated the benefits.

A local farming consortium had appealed against the sale and offered to buy the land themselves.

"We're very pleased with the decision from Justice Miller,'' said Alan McDonald a spokesperson for the consortium.

"Our view is that Shanghai Pengxin never brought any real economic benefits to New Zealand."

'Still confident'

Since the sale involves more than 5 hectares of land and is valued at more than 100m New Zealand Dollars ($84m; £53m), it had to approved by the Overseas Investment Office (OIO).

While the OIO had sent its recommendation for the deal last month, the court said that not all the criteria had been met.

Justice Miller said none of the people involved with NZ Milk, the subsidiary of Shanghai Pengxin looking to buy the farms, had adequate knowledge about the dairy industry, which he said was a prerequisite to approving foreign investment in the sector.

He added that since the farms were not in the best of the condition, any potential buyer, foreign or domestic, was likely to bring the same benefits of capital investment and improved productivity.

Despite the ruling by the court, the Chinese firm said it was confident that the sale would go ahead.

"Personally, for me, the ruling is a big surprise, I hadn't read the Overseas Investment Act in that way,'' said Cedric Allan, a spokesman for Pengxin.

"We're still pressing ahead as fast as we can, and we're still confident we are going to get the final sign-off.''


China will stockpile domestic sugar to aid prices

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China will stockpile 1 million tonnes of white sugar in state reserves, buying from the domestic market to stabilise prices of the sweetener and protect farmer interests, the country's top planning body said.

The government will buy an initial 500,000 tonnes at 6,550 yuan ($1,000) per tonne from Friday, the National Development and Reform Commission said on its website (www.ndrc.gov.cn).

Investors in the domestic futures market have been expecting the stockpiling plan since early January after domestic white sugar prices fell below production costs for mills, which could prompt mills to suspend operations and hurt sugarcane farmers.

The most-active September 2012 contract at the Zhengzhou market was traded at a more than two-month high on Wednesday to close at 6,614 yuan per tonne, 1 percent higher than the price offered by the government.

"The policy has set the bottom price for domestic sugar, aiming to encourage farmers to continue to grow.

But the government may not be able to buy that much at the price it offers," said Liu Yonghua, an analyst with Wanda Futures Co based in the country's top sugar region of Guangxi.
Beijing has been stockpiling farm products, including grains, soy, cotton and sugar, with government-set prices above farmers' planting costs.

The government releases its reserves whenever domestic prices rise above what the government can tolerate.

During the year to September 2011, the government released a total of 1.88 million tonnes of sugar from state reserves to cool record sugar prices, reducing state stocks and prompting a record volume of imports in 2011.

China's sugar imports in 2011 surged 65 percent on the year to 2.92 million tonnes.

Domestic sugar production falls short of China's needs, with a deficit of about 2 million tonnes estimated for this year, which needs to be covered with imports, analysts said.


Privatising land as the only path to save Chinese agriculture

Posted by Flora Sawita Labels: , , ,


by Wei Jingsheng 

As China’s industry grows rapidly, its countryside stagnates and stays poor. The Communist Party, not farmers are to blame for the situation, as party officials use land to make huge profits whilst maintaining public ownership. Only if land is privatised can it become productive. Here is the analysis by one of China’s great dissidents.

Washington (AsiaNews) – In speaking of China's rural economic stagnation and widespread poverty among peasants, there will be some people who make excuses again. They will say that it is due to small production, low quality of the people, and shortage of land, etc. These excuses are all nonsense using truth to deceive. The favourite counter-example by these people is the United States: open fields, advanced technology including farmers with Ph.D.'s, etc. Indeed, these elements are all true.

But China also has broad land, and once the United States also depended on small-scale farming. Why doesn't China have large-scale operations? It is due to the land policy. The Chinese Communist Party has always insisted on its public ownership of land from its early days. Some people think that this insistence is due to ideological reasons. But why can almost all other things be privatized, except land? If we pay attention on the princelings who got rich by granting land and doing demolition, we have the answers.

That people hate these "princelings" so much is not due to ideology, but due to all kinds of unreasonable profits and atrocities incurred. The adult Chinese with more experience know that the Chinese people's traditional concepts are still influential, thus they would go with the concept that "the hero's sons are heroes", and the emperor's son shall be an emperor. So usually, the Chinese people have more tolerant attitudes toward the official's children becoming the new officials. However, when people's vital interests and security are violated, it is another matter.

Since the recent occurrence of the "my dad is Li Gang, the high local officer!" incident, people would beat these "sons" indiscriminately if someone made trouble yet yelled something like "my dad is so and so". This new mentality is the accumulation of numerous bullying cases that people suffered from these Princelings. From their daily lives, the second generation of Communist officials has realized that the government riches are their own private property. Thus, it is difficult for them not to be arrogant: "our parents usurped others' land and property, and we are only beating people on the streets and making other kinds of little troubles." To be treated by people violently makes them feel wronged, that they are being made the scapegoats for their parents.

The fact that China's land ownership is unclear has created the opportunity for corruptive officials to make quick profits from it. The side effect is that annexation of land are blocked and is always in small scale. There is very little income from the land. The young peasants naturally tend to give up farming and migrate to the cities to be workers. The probability to realize advanced technology on a small piece of land is also greatly reduced. Coupled with authoritarian corruption, the space for rural economic development is reduced, thus producing rural poverty.

So, to solve the bottleneck problem of rural economic development in China, the first thing that needs to be solved is the communist dictatorship at the grassroots level. Not only must we tackle corruption, more importantly we must liberate the peasants, and give them back the freedom they traditional had. The second important issue is to privatize land. Land privatization is not only conducive to the annexation of land for development of large-scale agriculture; in fact, even on small pieces of land, modern agriculture can be developed. The agriculture in Japan, Taiwan and Europe is carried out on small parcels of land with great efficiency.

However, regardless whether large-scale agriculture or small-scale agriculture with advanced technology is present, people's subjective attitude is vital, even the decisive factor. Whether in the United States or Europe and Japan, the reason for their good land management is that there are landowners.

Some people have a deep misunderstanding about large farms in the United States and think that it was due to land acquisition. It was not. Indeed, some farms and ranches are very large, at least large in their early pioneering days. However, as in ancient China, with the division during inheritance and sale, land parcels have been getting smaller. Except for some farmers who have the capacity of merging smaller plots, many farmers lease their land or hire people to farm it. This reconfiguration is similar to the ancient land system in China. 

For example, my own land was vacant, so I leased it to my neighbor. My neighbor makes most of his income by working outside as clerk. He combined his land with his neighbors' land including mine and got other farmers to cultivate it. It's like the ancient Chinese landlords. The farmer who cultivates the parcels does not have very much land, but makes his income by cultivating this collectively larger parcel of land. In my eyes, my neighbor is kind of poor, while that farmer my neighbor hired seems much wealthier, with a confident look.

In this way comes the formation of a modern large-scale agriculture, with its efficiency far surpassing farming on small plots. The grains they harvested were sold cheap and often cannot get a good price; yet they have to ask others to buy their grains, or have to fallow. In the United States, we often see large tracts of farmland in long-term fallow. Land lies fallow in the U.S. because it is hard to sell the grain at a good price, while land lies fallow in China because its land ownership is unclear, even though there is not enough food for people's consumption.

The main reason for poor land management in China is due to land ownership being unclear. Nominally, it is state owned land, yet all levels of bureaucracy have some control over it. Especially the rural tyrants have the right to adjust the use of the land in any way at any time. Naturally, peasants do not have any incentive to invest in land. My land lease contract has written details about how to use and to maintain soil fertility, etc. That is because the land is my property, and landowners are used to being very careful to protect their property, which becomes a habit. Yet that seems a little odd for people from China.

Chinese peasants will not protect the land so much, because it is not their property. There is not much need to care if it does not belong to them. This is human nature. Meanwhile, the instability of land rights becomes an important source of authority for rural cadres -- adjusting the land rights now and then becomes their major source of income. In contrast, because of this instability, peasants' investment in the land will likely be only making benefit for others. Thus there is a general decline in soil fertility, and a lowering production. Land, this important property, is depreciated because of an unreasonable law of the Communist government about land ownership. 

Nowadays in China, much large agricultural machinery has already implemented the same system as the United States. This illustrates that the Chinese farmers could manage modern agriculture well without others having to "improve their quality". This success is because the property ownership of the machinery is relatively clear, while land does not have a clearly defined ownership. All the other advances are not enough to change China's agricultural backwardness completely. Only when the land is privatized, then modern agriculture could take root in China. Otherwise it is merely a variant of the collective farms of the former Soviet Union.

History has proved that the public ownership of agricultural land is a backward step to the feudal era. It had brought massive famine to both the Soviet Union and China. Even with the means of using modern technology this outcome cannot be avoided. Although we have known this lesson clearly for many decades, why has the reform stalled after a half step forward 30 years ago? The greedy nature of the bureaucratic capitalists and the demand for cheap labor by international capital are the root causes that lead to the slow rural economic development in China.

Privatising land as the only path to save Chinese agriculture

Posted by Flora Sawita Labels: , , ,


by Wei Jingsheng 

As China’s industry grows rapidly, its countryside stagnates and stays poor. The Communist Party, not farmers are to blame for the situation, as party officials use land to make huge profits whilst maintaining public ownership. Only if land is privatised can it become productive. Here is the analysis by one of China’s great dissidents.

Washington (AsiaNews) – In speaking of China's rural economic stagnation and widespread poverty among peasants, there will be some people who make excuses again. They will say that it is due to small production, low quality of the people, and shortage of land, etc. These excuses are all nonsense using truth to deceive. The favourite counter-example by these people is the United States: open fields, advanced technology including farmers with Ph.D.'s, etc. Indeed, these elements are all true.

But China also has broad land, and once the United States also depended on small-scale farming. Why doesn't China have large-scale operations? It is due to the land policy. The Chinese Communist Party has always insisted on its public ownership of land from its early days. Some people think that this insistence is due to ideological reasons. But why can almost all other things be privatized, except land? If we pay attention on the princelings who got rich by granting land and doing demolition, we have the answers.

That people hate these "princelings" so much is not due to ideology, but due to all kinds of unreasonable profits and atrocities incurred. The adult Chinese with more experience know that the Chinese people's traditional concepts are still influential, thus they would go with the concept that "the hero's sons are heroes", and the emperor's son shall be an emperor. So usually, the Chinese people have more tolerant attitudes toward the official's children becoming the new officials. However, when people's vital interests and security are violated, it is another matter.

Since the recent occurrence of the "my dad is Li Gang, the high local officer!" incident, people would beat these "sons" indiscriminately if someone made trouble yet yelled something like "my dad is so and so". This new mentality is the accumulation of numerous bullying cases that people suffered from these Princelings. From their daily lives, the second generation of Communist officials has realized that the government riches are their own private property. Thus, it is difficult for them not to be arrogant: "our parents usurped others' land and property, and we are only beating people on the streets and making other kinds of little troubles." To be treated by people violently makes them feel wronged, that they are being made the scapegoats for their parents.

The fact that China's land ownership is unclear has created the opportunity for corruptive officials to make quick profits from it. The side effect is that annexation of land are blocked and is always in small scale. There is very little income from the land. The young peasants naturally tend to give up farming and migrate to the cities to be workers. The probability to realize advanced technology on a small piece of land is also greatly reduced. Coupled with authoritarian corruption, the space for rural economic development is reduced, thus producing rural poverty.

So, to solve the bottleneck problem of rural economic development in China, the first thing that needs to be solved is the communist dictatorship at the grassroots level. Not only must we tackle corruption, more importantly we must liberate the peasants, and give them back the freedom they traditional had. The second important issue is to privatize land. Land privatization is not only conducive to the annexation of land for development of large-scale agriculture; in fact, even on small pieces of land, modern agriculture can be developed. The agriculture in Japan, Taiwan and Europe is carried out on small parcels of land with great efficiency.

However, regardless whether large-scale agriculture or small-scale agriculture with advanced technology is present, people's subjective attitude is vital, even the decisive factor. Whether in the United States or Europe and Japan, the reason for their good land management is that there are landowners.

Some people have a deep misunderstanding about large farms in the United States and think that it was due to land acquisition. It was not. Indeed, some farms and ranches are very large, at least large in their early pioneering days. However, as in ancient China, with the division during inheritance and sale, land parcels have been getting smaller. Except for some farmers who have the capacity of merging smaller plots, many farmers lease their land or hire people to farm it. This reconfiguration is similar to the ancient land system in China. 

For example, my own land was vacant, so I leased it to my neighbor. My neighbor makes most of his income by working outside as clerk. He combined his land with his neighbors' land including mine and got other farmers to cultivate it. It's like the ancient Chinese landlords. The farmer who cultivates the parcels does not have very much land, but makes his income by cultivating this collectively larger parcel of land. In my eyes, my neighbor is kind of poor, while that farmer my neighbor hired seems much wealthier, with a confident look.

In this way comes the formation of a modern large-scale agriculture, with its efficiency far surpassing farming on small plots. The grains they harvested were sold cheap and often cannot get a good price; yet they have to ask others to buy their grains, or have to fallow. In the United States, we often see large tracts of farmland in long-term fallow. Land lies fallow in the U.S. because it is hard to sell the grain at a good price, while land lies fallow in China because its land ownership is unclear, even though there is not enough food for people's consumption.

The main reason for poor land management in China is due to land ownership being unclear. Nominally, it is state owned land, yet all levels of bureaucracy have some control over it. Especially the rural tyrants have the right to adjust the use of the land in any way at any time. Naturally, peasants do not have any incentive to invest in land. My land lease contract has written details about how to use and to maintain soil fertility, etc. That is because the land is my property, and landowners are used to being very careful to protect their property, which becomes a habit. Yet that seems a little odd for people from China.

Chinese peasants will not protect the land so much, because it is not their property. There is not much need to care if it does not belong to them. This is human nature. Meanwhile, the instability of land rights becomes an important source of authority for rural cadres -- adjusting the land rights now and then becomes their major source of income. In contrast, because of this instability, peasants' investment in the land will likely be only making benefit for others. Thus there is a general decline in soil fertility, and a lowering production. Land, this important property, is depreciated because of an unreasonable law of the Communist government about land ownership. 

Nowadays in China, much large agricultural machinery has already implemented the same system as the United States. This illustrates that the Chinese farmers could manage modern agriculture well without others having to "improve their quality". This success is because the property ownership of the machinery is relatively clear, while land does not have a clearly defined ownership. All the other advances are not enough to change China's agricultural backwardness completely. Only when the land is privatized, then modern agriculture could take root in China. Otherwise it is merely a variant of the collective farms of the former Soviet Union.

History has proved that the public ownership of agricultural land is a backward step to the feudal era. It had brought massive famine to both the Soviet Union and China. Even with the means of using modern technology this outcome cannot be avoided. Although we have known this lesson clearly for many decades, why has the reform stalled after a half step forward 30 years ago? The greedy nature of the bureaucratic capitalists and the demand for cheap labor by international capital are the root causes that lead to the slow rural economic development in China.

China posts bigger farm trade deficit in 2011

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China boosted imports of agricultural products last year, with the farm trade deficit rising 47.4 percent from 2010 as the country's own production fell short of demand in the world's second-largest economy.

China imported $94.87 billion worth of farm products in the whole year of 2011, with a trade deficit of $34.12 billion, the agriculture ministry said.

Imports of grains, cotton, sugar as well as livestock products all increased.

Imports of sugar rose the most, or 65 percent, in 2011 to a record 2.92 million tonnes worth $1.94 billion, the ministry said.

China's rising demand after the country's move to urbanisation coupled with limited farmland could prompt the country to become the world's largest importer of farm products in coming years, a government researcher said.

China has topped Canada to become the No 1 market for US farm products for the first time in 2011, according to the US Department of Agriculture.

China's imports of livestock products, including also meat, were worth $13.4 billion, up 38.8 percent on year, giving a trade deficit of $7.41 billion, up 50.9 percent on year, according to the ministry's report (www.agri.gov.cn).

Imports of rice, corn as well as wheat have also increased in 2011 from 2010, it said.


China posts bigger farm trade deficit in 2011

Posted by Flora Sawita Labels: , , , ,

China boosted imports of agricultural products last year, with the farm trade deficit rising 47.4 percent from 2010 as the country's own production fell short of demand in the world's second-largest economy.

China imported $94.87 billion worth of farm products in the whole year of 2011, with a trade deficit of $34.12 billion, the agriculture ministry said.

Imports of grains, cotton, sugar as well as livestock products all increased.

Imports of sugar rose the most, or 65 percent, in 2011 to a record 2.92 million tonnes worth $1.94 billion, the ministry said.

China's rising demand after the country's move to urbanisation coupled with limited farmland could prompt the country to become the world's largest importer of farm products in coming years, a government researcher said.

China has topped Canada to become the No 1 market for US farm products for the first time in 2011, according to the US Department of Agriculture.

China's imports of livestock products, including also meat, were worth $13.4 billion, up 38.8 percent on year, giving a trade deficit of $7.41 billion, up 50.9 percent on year, according to the ministry's report (www.agri.gov.cn).

Imports of rice, corn as well as wheat have also increased in 2011 from 2010, it said.


China to buy soya on US trip, but no big one-off deal seen

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China will sign soybean import deals during a US trip by Vice President Xi Jinping this month, but volumes are likely to fall short of the biggest ever one-off deal signed during a Chinese visit last year, industry officials said on Thursday.

US soyabean futures spiked last year after China signed deals to import 11.5 million tonnes of soyabeans, worth about $6.7 billion, during a visit by Chinese President Hu Jintao.

"The intended volume this time would be lower than last year, when the country's No 1 visited the United States," said one industry source, who declined to be identified.

China is the world's largest importer of soyabeans and cotton, and a delegation accompanying Xi will sign deals to import beans, cotton and wine, the officials said.
The deals are likely to be more of a political gesture, with only framework contracts being signed, leaving prices and shipment details to be finalised at a later stage, the sources said.
The bulk of the business done during the visit is likely to be for the 2012/13 marketing year, the sources said.

Those contacted for the story declined to speak on the record because of the political sensitivity of the trip by Xi, who is expected to succeed Hu as China's president later this year.
China imports about 60 percent of soyabeans traded across the world, with the United States, Brazil and Argentina the major suppliers.

China's imports of 52.6 million tonnes included 22.3 million tonnes from the United States in 2011.

Chicago Board of Trade soya rose for the last two weeks, buoyed by concerns over drought threatening to reduce output in Brazil and Argentina which could prompt buyers to seek more US cargoes in the coming months.

On February 15, a day after President Barack Obama hosts Xi at the White House in Washington, the Chinese soya delegation will travel to Des Moines, Iowa, where a signing ceremony will be held, according to the industry officials.

Officials from China's largest grain traders, COFCO as well as Sinograin, will be part of the visiting delegation.
It will also sign deals to import US wine worth about $1 million, said one source, and others said US cotton purchases would be announced, although no details of those deals were available.

Although some Chinese companies are interested in US soyameal, sources said it was less likely that China would import soyameal because US prices were not attractive after taking into account taxes and other costs.


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