Drop in grain self-sufficiency no danger to food security

By Fan Junmei
0 Comment(s)Print E-mail China.org.cn, July 8, 2013
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Though China's grain self-sufficiency rate has dropped below 90%, it does not mean the country's food security is endangered, said Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Cooperation at the Ministry of Commerce.

Mei Xinyu [File photo]

Mei Xinyu [File photo]

In 2012, China's grain output rose for a ninth consecutive year to a record high of 589.57 million tons. Growing yields, however, did not rein in surging imports. Because the nation's total grain imports also hit a historic high of more than 70 million tons in 2012, China's grain self-sufficiency rate has dropped below 90%.

During an interview with China.org.cn, Mei shared his thoughts on the economic phenomenon.

According to Mei, the increasing grain output cannot catch up to increasing consumption. It is worth noticing that China's domestic demands for high quality agricultural products, like rice, for example, have emerged and soared in recent years.

In the past, it was rare to see Thai rice in Chinese market, but now, it is commonplace at urban supermarkets and some rural fairs. Even a kind of extremely expensive Japanese rice has entered the Chinese market.

One thing we should not ignore, Mei said, is the increased demand for feed. From 2003 to 2012, China's meat production rose from 64.43 million tons to 83.87 million tons, while milk production increased from 18.48 million tons to 38.68 million tons. Consumption of eggs and poultry has also surged. As production of animal-based food products has surged, so too has the consumption of grain-based animal feed. Still, not all imported grain is consumed by the domestic market, Mei said. In fact, much of it will be processed for export.

Even if war were to break out, China's food security still would not be endangered by the current grain self-sufficiency rate, Mei said. Wartime food consumption patterns would be quite different from those of peacetime, he said. The same population would simply consume less food.

Mei also pointed out that a large part of the nation's arable land is now covered by cash crops. As long as China's arable land doesn't drop below the “red line” of 1.8 billion mu (120 million hectares), its grain acreage could be expanded in wartime, when demand for cash crops would plummet as the need for grain surged. Mei was certain that China was capable of keeping most of its grain-importing channels smooth during wartime.

The current domestic grain price is higher than that in the international market, which to some extent explains the surging grain imports, Mei said. He also posited that the price difference was partially due to the surge indomestic labor cost and massive use of chemical fertilizer. The grain purchase price set by the Chinese government also contributed to the difference, Mei said.

Mei made it clear that it is impossible to keep the domestic food industry completely intact. In fact, China's food security status is much better than many other countries. In the context of global economy, China's economic growth will benefit not only its people, but also its trade partners.

As long as China's arable land does not drop below the 'red line,' the grain importing channels stay smooth and the national grain reserve remains reasonable, there is no need to pursue a higher grain self-sufficiency rate, said Mei.

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