China Food Prices May Rise in 2012

Monthly data published by China’s General Administration of Customs showed an increase of China's food imports in the first half of this year—nearly 41 million tons. It’s an increase of 41.2% over the previous year.

 

Imports of grains in year 2012 included nearly 29 million tons of soy beans, 2.4 million tons of corn, 2.2 million tons of wheat, 1.5 million tons of barley, and 1.2 million tons of rice and crops.

 

The increase in food imports is causing concern that food prices may rise, especially because of the floods in China and drought in the US.

 

[Professor Frank Xie, Univ. of South Carolina]: 

“Floods in China, especially the drought in the US, have caused agricultural products to go up in price around the world. If the drought continues, the price undoubtedly will be affected. If China’s fall agricultural production also gets affected, this shortage of foodstuff or rising price will cause China’s food prices to go up. It will all become serious problems.”

 

Professor Xie points out the size of arable land is decreasing in China.

 

[Professor Frank Xie, Univ. of South Carolina]:

“China develops everywhere, destroyed agricultural lands and houses farmers built. Decreasing the surface area of agricultural plantation. Another point is life in the rural areas is very tough, a lot of young people abandon their hometown and work in the cities, many farmlands are barren. The surface area for planting in China is actually decreasing.”

 

Government data reported an increase in summer grain of 2.8 percent compared to last year. Professor Xie believes the numbers reported by Communist Party officials in China cannot be trusted.

 

[Professor Frank Xie, Univ. of South Carolina]:

“We know there is no way to believe in the numbers of CCP propaganda. It is the same with the CCP food reserve. Even Premier Wen Jiabao has to personally check if there is food in the granary. All Chinese officials are lying to each other.”

 

In 2011, more than six million tons of food was imported. China’s rate of self-sufficiency for food is less than 90 percent.