In today’s talking points: China announces new super-ministries, Australia’s signing of the TPP signals greater investment in farms, Chinese pig prices hit all time low, Salmon Only Chain to Open in China
China announces new super-ministries
As part of it’s ‘Two Sessions’ meetings, Beijing released today plans to restructure and consolidate multiple ministries. For example the new National Markets Supervision Management Bureau absorbs AQSIQ, SAIC and the CFDA. In turn taking on the price monitoring and antimonopoly roles previously managed by the NDRC. In effect these changes will impact how businesses obtain appropriates licenses, importation approvals and check product standards/certifications. The central government is currently going through a period of state institutional reform, centralizing multiple agencies and shifting their respective purviews.
Read More: China Daily & Reuters
Australia’s signing of the TPP signals greater investment in farms
Last week Australia and 11 remaining nations signed the Trans-Pacific-Partnership, opening up agricultural exporters to new markets via deep tariff cuts and other liberalising measures. “It means investment on farm in jobs, in innovation and in efficiencies that will flow through to rural and regional economies,” affirmed National Farmers’ Federation (NFF) President Fiona Simson. It’s estimated the deal will boost Australian exports by $AUD30 billion and real GDP $AUD 18 billion per year.
Read More: QCL
Chinese pig prices hit all time low
Chinese pig prices have hit an all time low in nearly four years this week. Chinese farmers are concerned that demand is not growing as fast as the rapid expansion of large pig harms across China. Experts forecast a slowing of imports by China, but demand is expected to continue later in the year. Growing supply has led to falling imports by 25% for pork in China. “This year big farms can still make some margins but next year probably everyone will make losses,” said Pan at Rabobank.
Read More: Agriculture
Salmon only chain to open in China
Norway’s largest producer of salmon, Marine Harvest is planning to open 2000 more Supreme Salmon Chains in China. The company already operates 5 restaurants in Taiwan. Marine Harvest hopes to tap into the Chinese market and increase China’s demand for farmed fish.
Read More: FoodandWine