Category Archives: china

China is a Major Importer of Distillers Grains DDGS

This graph will show you what rising incomes and more meat consumption in China mean for the U.S. agricultural export market.

China’s demand for imported grains, much of it from the United States, has surged recently, with imports of cereal grains rising to 16 million tons in 2012 and 18 million in 2013. Imports in 2013 included 3 million tons of corn and 4 million tons of DDGS (distillers dried grains with solubles; a co-product of U.S. corn ethanol production used for feed) from the United States.

In 2013, the United States supplied 70 percent of China’s wheat imports and, for the first time, China became a major market for U.S. sorghum. China’s demand for feed grains appears to have reached a turning point, as a tightening labor supply and rising feed costs force structural change in China’s livestock sector.

Labor scarcity, animal disease pressures, and rising living standards are prompting rural households to abandon “backyard” livestock production and shift more production to specialized farm enterprises that rely more heavily on commercial feed. Because of this, China has switched from being a corn exporter to importing 3-5 million tons annually since 2009.

Rising feed demand has also pushed up costs and motivated feed mills and livestock producers to explore new feed ingredients like DDGS and sorghum.

source: usda

Summer Herdsman Migration

The photo below shows the Xinjiang Kazak Herdsmen’s Annual Summer Migration.

Caption:

ALTAY, CHINA – JUNE 08: A Kazak herdsman rides horse with his son during the migration on June 8, 2014 in Altay, China. The Kazak herdsmen move all their property almost 1000km long from winter migration to summer migration in the gobi desert of Xinjiang province. (Photo by Xiaolu Chu/Getty Images)

The Old Way of Agriculture in China

The FlickrCC photographer, James Wheeler, said this about his photograph:

Took this photo in southern Yunnan, China, in a small town just before the Burma border crossing. The electricity was unreliable and the town was missing many of the “comforts” of development, like indoor plumbing and refrigeration. They lived a simple life raising their crops and tending to livestock, much as they have for hundreds of years. (May 2007)

Chinese Fishing Houses

Dongtou Fishing houses.

Photos by Jan-Christian Teller @ FlickrCC. August 20, 2011.

“Going over the main bridge leading to Dongtou’s largest town, many of these fishing houses/farms scatter the harbor.”

NOTE TO READERS
Starting today, this site plans to live up to its name a bit more, that is, I will be using more pictures to tell the story of agriculture and food production on our Gaia planet during this Anthropocene age. We are vigilant witnesses. As always, comments welcome. Hope you are all enjoying your summer.

–Kay M.

Map of Countries Sized by Population & a Changing Global Economy Dominated by Asia

This map was tweeted by @incrediblemaps and shows us the size of countries relative to their populations, which as we know has big implications for food security and the commodity trade markets.

On a related note, one of the news items that really got my attention last week was the WSJ sideline interview of Federal Reserve Bank of St. Louis President James Bullard, during his speaking engagement at the Credit Suisse Asian investment conference in Hong Kong.

From the WSJ’s blog:

…he can foresee a tri-polar world in which China and India are the major economic powers, counterbalanced by a bloc of the United States, Europe and Japan, whose populations together will total about one billion people.

“We’ve said the U.S. is a superpower, an economic superpower. But these are giants, they’re bigger than a superpower,” he said. “What would that world be like, both economically and politically? I think that’s really hard to understand. How much would the Western bloc be willing to cooperate politically to be a counterbalance to China and India?”

Mr. Bullard offered few specifics of what such a world would look like, but did acknowledge that it might require some adjustment on the part of ordinary Americans like those he serves in the heartland.

This future is a challenge to imagine, but has implications for the competition for oil and energy, number one, I think, and all of the other commodities, with ever-bigger demands on the Earth’s natural resources. It has jobs implications; global communications will continue to improve and evolve; technological advancements and innovations will be coming more and more from Asia; and, global politics and alliances will change, as Bullard states. Finally, it has big implications for food and agriculture. My personal view is that there will be very surprising innovations in both of these sectors.

In another weekend article, the NYT’s travel section contained this interesting paragraph:

Ernst & Young estimates that by 2030, nearly one billion people in China could enter into the middle class and have a disposable income that allows them to travel domestically and abroad. Ten years ago their government singled out tourism as a key pillar of economic growth, and as a result, they have invested well ahead of the curve in high-speed trains, hotel complexes and airports to absorb growth within the middle class. In fact, right now they are busy building 69 airports around the country, so that in the future no person in the country will be more than a 90-minute drive from an airport.

There are a few “somethings that are gonna haftagive” when we consider these rapidly changing global dynamics.

If you have any visions of where this puts people in Bullard’s heartland, in, say the year 2035, please let us know your ideas in the comments. What does the future look like for your children under this scenario? What will their standard of living look like? What will transportation and supply chains look like in the U.S. and in Asia? Where will the job opportunities be? Will there be enough jobs? What will global cooperation look like by then?

THE ECONOMIST: Northern China’s Water Problems

The subject of water scarcity and pollution in China, as related to its huge population and rapid industrialization, is an important one.

China is using up water at an unsustainable rate, and polluting it badly, as well. According to THE ECONOMIST, the World Bank estimates that China’s water problems are impacting its GDP growth by an estimated 2.3 percent (mostly health-related), and water scarcity is also threatening energy growth, which further threatens its GDP growth.

This ECONOMIST interview suggests the country of China needs fewer dams and more water pricing. It needs to stop building huge cities in the desert areas of the North, and it needs to encourage water conservation. Furthermore, if it wishes to invest in huge water engineering projects, it should direct some of that money and energy into water treatment and sewer projects, which it has not done very well to date.

Four-fifths of China’s water is in the south, notably the Yangzi river basin. Half the people and two-thirds of the farmland are in the north, including the Yellow River basin. Beijing has the sort of water scarcity usually associated with Saudi Arabia: just 100 cubic metres per person a year. The water table under the capital has dropped by 300 metres (nearly 1,000 feet) since the 1970s.

SOURCE: All dried up