Transcript Presentation By CFNA for CICILS 2008

China’s Pulses Production and Trade
in 2008 Season
CFNA
China’s Pulses Production in 2008 Season
China’s Pulses Trade in 2008 Season
Forecast and Prospects
2
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
Due to the constant increase of global grain and
oil prices in early 2008, the sown areas of
Chinese oilseed crops were generally expanded.
In many kidney bean growing regions，kidney
bean growing area was reduced while the
soybean sown area was increased. For example,
kidney bean sown area of our northeast region
was reduced by 20% from 2007.
3
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
As the climate of the northeast region was
favorable in 2008, kidney bean growth there was
generally nice
.
Though there was a rather serious drought in
northwest and north regions and the harvest area
of kidney bean was reduced, total output of
Chinese kidney bean in 2008 is more or less the
same as last season due to the increase of yield
per unit.
4
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
Since the outbreak of the world financial crisis
in September of 2008.
The purchasing prices of many agricultural
products including kidney bean and other main
pulses were considerably reduced from the
first half of last year when the prices had kept
increasing.
5
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
Therefore, huge quantity of products remained
in the hands of farmers and no one wanted to
buy for several months，thus serious harming
the interests of pulses farmers and greatly
affecting their enthusiasm for growing pulses.
6
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
China’s Pulses Trade in 2008 Season
Forecast and Prospects
7
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
From January to December of 2008, total
Chinese pulses export amounts to 1.03 million
tons, 90% up over last year, with significant
export increase of kidney bean, broad bean,
haricot bean and pea.
8
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
We hold that the rapid export increase of major
pulses varieties is mainly attributed to world
price souring of international agricultural
products in the first half of 2008, when
importers were forced to increase their stock
for reducing business risks, but not due to the
change of demand in world market of the
season.
9
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
Chinese Pulses Export（January—December, 2008）
Varieties
Compared with Last
Year
Export（ton）
kidney bean
755224
104%
mung bean
139219
51%
small red bean
56128
31%
broad bean
43725
148%
haricot bean
17964
213%
4138
99%
114
-77%
20074
32%
1036768
90%
pea
chickpea
other pulses
Total
10
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Owing to the impact of world financial crisis，
Chinese export of agricultural products is
seriously blocked，and our processing
enterprises are facing business difficulties,
such as operating under capacity and
economic returns reduced. Export enterprises
are in a difficult trading position with
increased risks of getting back credit.
11
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Due to the economic recession of some
countries and their currencies are devalued，
we can not get back the money in time after
our pulses export, or can by no means get it
back.
12
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
• The financial crisis leads to rapid decline of
our kidney bean export in November—
December of 2008, with total export volume in
these two months reduced by 22.7%，and the
export value reduced by 17.1% from the same
period of last year.
• At the same time, a lot of defaults and trading
disputes took place.
13
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Now I would like to give a briefing on our
export of some pulse varieties which are
attracting attention of world market:
Kidney Bean
Mung Bean
Pea
14
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Kidney Bean
Our kidney bean export in 2008 accounts for
71% of total pulses export of the year.
Following table shows that our kidney bean
export in 2008 is 750 000 tons, up 27% over last
year, with rapid increase of export to South
America, Asia and Africa.
15
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Chinese kidney Bean Export
（January—December in 2008）
Regions
Compared
Export（ton）
Asia
20.6
25.1%
Africa
11.4
16.5%
Europe
14.2
9.4%
South America
27.2
51.1%
North America
1.8
-17.5%
Oceania
0.05
3.7%
Total:
75.5
26.5%
16
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Mung Bean
Our mung bean export in 2008 accounts for
14% of total pulses export of the year.
Following table shows that our mung bean
export in 2008 is 130 000 tons, up 14% over
last year, with some increase of export to Asia
and South America，but some decrease of
export to Europe, Oceania and Africa.
17
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Chinese Mung Bean Export
（January—December in 2008）
Regions
Compared
Export（ton）
Asia
111716
19%
39
-21%
12234
-12%
South America
1084
13%
North America
13923
2%
121
-41%
139219
14%
Africa
Europe
Oceania
Total:
18
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Pea
Due to the constant development of domestic
vermicelli processing industry and increase of
consumption demand, our pea import in
recent years is stable as a whole. Our pea
import of 2008 accounts for 200 000 tons，
down 20% from last year，mainly resulting
from the increase of world pea price.
19
Pulse Sub-Chamber of CFNA
China’s Pulses Trade in 2008 Season
Chinese Pea Import
（January—December in 2008）
Regions
Compared
Import（ton）
Asia
Africa
Europe
North America
Oceania
Total:
20
155
-6%
29
867%
1104
-18%
201474
-23%
639
-38%
203402
-23%
Pulse Sub-Chamber of CFNA
China’s Pulses Production in 2008 Season
China’s Pulses Trade in 2008 Season
Forecast and Prospects
21
Pulse Sub-Chamber of CFNA
Forecast and Prospects
1) Chinese pulses sown area of 2009 would
further decrease
As the production costs of agricultural
products in 2008 were increased and sales in
this year declined，it is not only difficult for
farmers to increase their income，but also
very harmful to the stability of agricultural
production.
22
Pulse Sub-Chamber of CFNA
Forecast and Prospects
In 2009 the Chinese government will continue
to adopt policies favorable for agriculture and
protect farmers’ enthusiasm for growing
grains, including continuously encouraging
soybean and corn production. Therefore
Chinese farmers would consider growing
more soybean.
23
Pulse Sub-Chamber of CFNA
Forecast and Prospects
As pulses including kidney bean growing can
not enjoy subsidy and farmers’ confidence in
external market environment is weakened，it
is expected that sown area of pulses in 2009
would be reduced from last year.
24
Pulse Sub-Chamber of CFNA
Forecast and Prospects
2) Chinese enterprises would strengthen the
control of business risks and product quality
Along with the spreading of world financial
crisis，the uncertain factors of world market
are increasing and the business risks of
enterprises are becoming greater. Therefore
Chinese suppliers would be more cautious in
signing contracts and supplying commodities.
25
Pulse Sub-Chamber of CFNA
Forecast and Prospects
In respect of product quality, Chinese
enterprises have been attaching greater
importance to creditability and product
quality in recent years，and a lot of
enterprises bought and installed colour
selectors, thus raising processing
technologies to meeting the demand of
consumers at different levels even better.
26
Pulse Sub-Chamber of CFNA
Forecast and Prospects
In recent years the Pulses Sub-chamber of
CFNA has held forums and conducted display
/ consultation activities at various producing
regions of China for the industry of sundry
grains and pulses as useful supplements to
the annual meeting of CICILS/IPCIT.
27
Pulse Sub-Chamber of CFNA
Forecast and Prospects
The forums have played a positive role for
enhancing the level of Chinese pulses
industry and expanding channels of
exchange and cooperation between
Chinese pulses industry and overseas
colleagues in respect of pulses varieties ,
growing，processing， trade，etc.
28
Pulse Sub-Chamber of CFNA
Forecast and Prospects
On behalf of CFNA，I would like to state
here that we sincerely welcome our friends
of pulses industry worldwide to China, and
hope you will have the opportunity to
participate in the forum and
display/consultation activities to be carried
out in the middle of August，2009 in
Ningxia.
29
Pulse Sub-Chamber of CFNA
Forecast and Prospects
Let’s make efforts for promoting the
understanding and cooperation among
industry colleagues worldwide and pushing
forward the development of global pulses
industry.
30
Pulse Sub-Chamber of CFNA
CFNA