IMPROVED YIELDS GROW CHINA’S CORN PRODUCTION
In its Global Agricultural Information Network (GAIN) report, released on April 2, the FAS forecast China to harvest 296 million tonnes of corn in 2024-25, a 2.4% increase over the previous marketing year. At 44.3 million hectares, corn planted area will be slightly larger as farmers favor the grain over soybeans due to higher profits from planting corn, despite government subsidies favoring soybeans. Total corn consumption for the nation of 1.4 billion people is forecast at 318 million tonnes in 2024-25. Corn use in feed is projected to be 235 million tonnes in 2024-25. To meet overall demand, corn imports are seen at 20 million tonnes in 2024-25, lower than the 2023-24 estimate of 23 million tonnes.
“Industry sources indicate the amount of acreage sown with GE corn seeds in 2023-24 is less than 1% of total area, but GE corn seed acreage could grow to 10-15% of total area by 2025-26 or 2026-27 if favorable conditions develop,” the FAS said. China is the world’s largest wheat producer, and 2024-25 production is forecast to be 138 million tonnes, or 1% higher than the 136.5 million tonnes harvested in 2023-24 on improved yields and steady planted area. Better yields and high returns are incentivizing farmers to plant wheat despite rising input costs, the FAS noted.
Due to lower corn prices reducing wheat substitution in feed, 2024-25 total wheat consumption is forecast at 146.5 million tonnes, 7 million tonnes lower than in 2023-24. China’s rough rice production is forecast to increase slightly due to larger planting area and yield. The FAS projects 207 million tonnes of rough production in 2024-25, up slightly from 206.6 million tonnes the previous year. Milled rice production is projected at 145 million tonnes. Rice consumption is forecast at 140 million tonnes, 5 million tonnes lower than 2023-24 based on weaker demand for both feed and food use.
(Link: WorldGrain)
