An Analysis of the Corn Market of China

Abstract

Since the 1980s staple food consumption has fallen and feed consumption and industrial consumption have increased in the China corn market. Till 2007 staple food consumption has fallen to 10% and feed consumption has increased to 65% of total corn consumption, and the rest of corn consumption went to industrial use. In the changing process of corn supply and demand structure, the demand for corn as industrial material was the strongest. During the past 30 years China witnessed the fastest growth in the corn supply, which was due to progress in agricultural technology and expansion of corn growing area. In the future, the increase in the corn supply will mainly depend on progress in agricultural technology and upgrading of medium and low yield land. Owing to the food security policy of the Chinese government, China's corn export is characterized by fluctuation. Though China highly values self-sufficiency in grain, the export of corn should not be halted. The rational policy for China is to import corn in south area and to export corn in northeast area.