Required Report - public distribution

**Date:** 3/1/2006

**GAIN Report Number:** CH6010

CH6010

**China, Peoples Republic of**

**Grain and Feed**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Maurice House

U.S. Embassy Beijing, Office of Agricultural Affairs

**Prepared by:**

Kevin Latner and Jiang Junyang

**Report Highlights:**

China\'s total grains output rose in MY05/06 over the previous year as a
result of good weather and increased acreage. Increased acreage was in
response to higher market prices since the fall of 2003 and from
government support programs (e.g., price supports, export incentives,
direct payment and tax incentives). Corn production for MY05/06 is
estimated at 134 million metric tons (mmt), up 3 percent from the
previous year. Corn production in MY06/07 is forecast at 132 mmt and
China is forecast to import 1 mmt in MY06/07, driven by growth in the
livestock sector and expanded ethanol production. Wheat production in
MY05/06 is estimated to be 97 mmt, up 5 percent, and rice output for
MY05/06 is estimated at 182 mmt, up 1.5 percent.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[**Situation And Outlook 3**](#situation-and-outlook)

[Policy 3](#policy)

[Price Support Programs 3](#price-support-programs)

[Rice 3](#rice)

[Wheat 3](#wheat)

[Seed Subsidy and Income Support 4](#seed-subsidy-and-income-support)

[Elimination of Agricultural Tax and Direct Payment
4](#elimination-of-agricultural-tax-and-direct-payment)

[Export Support for Corn 4](#export-support-for-corn)

[Tariff Rate Quotas (TRQ's) 5](#tariff-rate-quotas-trqs)

[Grain Yields 5](#grain-yields)

[Market Prices and Grain Area 5](#market-prices-and-grain-area)

[Biotechnology and Biosafety 7](#biotechnology-and-biosafety)

[Wheat 7](#wheat-1)

[Production 7](#production)

[Consumption 7](#consumption)

[Stocks 8](#stocks)

[Corn 8](#corn)

[Production 8](#production-1)

[Consumption 8](#consumption-1)

[Feed consumption 8](#feed-consumption)

[Industrial Consumption 9](#industrial-consumption)

[Starch Production 9](#starch-production)

[Ethanol Production 9](#ethanol-production)

[Trade 10](#trade)

[Stocks 10](#stocks-1)

[Rice 10](#rice-1)

[Production 10](#production-2)

[Consumption 11](#consumption-2)

[Trade 11](#trade-1)

[Stocks 11](#stocks-2)

[Barley 11](#barley)

[Sorghum 12](#sorghum)

[Statistical Tables 13](#statistical-tables)

[PSD tables 13](#psd-tables)

[Table 1. Wheat PSD Table 13](#table-1.-wheat-psd-table)

[Table 2. Corn PSD Table 14](#table-2.-corn-psd-table)

[Table 3. Rice PSD Table 15](#table-3.-rice-psd-table)

[Table 4. Barley PSD Table 16](#table-4.-barley-psd-table)

[Table 5. Sorghum PSD Table 17](#table-5.-sorghum-psd-table)

[Price Tables 18](#price-tables)

[Table 6. Wheat Price Table 18](#table-6.-wheat-price-table)

[Table 7. Corn Price Table 19](#table-7.-corn-price-table)

[Table 8. Rice Price Table 20](#table-8.-rice-price-table)

[Trade Tables 21](#trade-tables)

[Table 9. Wheat Trade Table 21](#table-9.-wheat-trade-table)

[Table 10. Corn Trade Table 25](#table-10.-corn-trade-table)

[Table 11. Rice Trade Table 29](#table-11.-rice-trade-table)

[Table 12. Barley Trade Table 31](#table-12.-barley-trade-table)

[Table 13. Sorghum Trade Table 33](#table-13.-sorghum-trade-table)

# Situation And Outlook

China\'s total grains output rose in MY05/06 over the previous year as a
result of good weather and increased acreage. Increased acreage was a
response to higher market prices since the fall of 2003 and from
government support programs, including price supports, export
incentives, direct payment and tax incentives.

China is forecast to import 1 mmt of corn in MY06/07 as its consumption
outpaces domestic production. Forecast wheat imports in MY06/07 are down
because of increased production in 2004 and 2005.

According to the Ministry of Agriculture (MOA), in 2005 net per capita
farm income rose 6.2 percent year-on-year to RMB 3,255 (\$403), the
second highest growth rate since 1997. For grain farmers, the average
net profit/Ha (wheat, corn and rice) in 2005 is estimated to be lower
than 2004 due to rising cost in agricultural inputs.

+-----------------------------+----+----+----+----+----+----+----+----+
| ###### N                    |    |    |    |    |    |    |    |    |
| et Profit for Grain Farmers |    |    |    |    |    |    |    |    |
|  (in US \$/Ha) in 1997-2004 |    |    |    |    |    |    |    |    |
+-----------------------------+----+----+----+----+----+----+----+----+
| Year                        | 19 | 19 | 19 | 20 | 20 | 20 | 20 | 20 |
|                             | 97 | 98 | 99 | 00 | 01 | 02 | 03 | 04 |
+-----------------------------+----+----+----+----+----+----+----+----+
|                             |    |    |    |    |    |    |    |    |
+-----------------------------+----+----+----+----+----+----+----+----+
| Net Profit/Ha               | 1  | 1  | 46 | -6 | 71 | 9  | 62 | 3  |
|                             | 91 | 44 |    |    |    |    |    | 56 |
+-----------------------------+----+----+----+----+----+----+----+----+
| Source: National            |    |    |    |    |    |    |    |    |
| Development & Reform        |    |    |    |    |    |    |    |    |
| Commission                  |    |    |    |    |    |    |    |    |
+-----------------------------+----+----+----+----+----+----+----+----+

# 

## Policy

The government's long-standing policy of grain self-reliance led the
government in 2004 to shift more financial resources and policy
incentives to the grain sector. The following incentives are designed to
maintain the production of grain products. Programs discussed below
include price support and export incentive programs.

### Price Support Programs

The price support programs for rice and wheat are designed to insure
grain farmers also benefit from China's booming economy. In 2005, net
per capita farm income rose 6.2 percent year-on-year to RMB 3,255
(\$403), the second highest growth rate since 1997. Despite the high
growth-rate, significant increases in the cost of inputs have meant that
net farm income in 2005 is down 0.7 percent from the previous year.

#### Rice

With the objective of supporting rice production, in 2004 the Government
of China began guaranteeing farmers a minimum price for rice. If prices
drop below the price floor the government directs Sinograin, a state
enterprise responsible for holding grain reserves, or its provincial
counterparts, to purchase rice at the floor price. The floor prices for
early indica (unmilled) and Japonica (unmilled) are RMB 1,400/ton
(\$173/ton) and RMB 1,500/tons (\$186/ton), respectively. Stored rice
can be sold off at auctions at Sinograin's discretion. The 2005 price
floor for rice was unchanged from 2004. The price floor for 2006 is
forecast to remain unchanged.

From July to December 2005 Sinograin and its subsidiaries purchased 4.5
mmt of indica and 7.7 mmt of japonica in the four major rice producing
provinces: Jiangxi, Anhui, Hubei and Hunan. The purchases kept market
prices above the floor price.

#### Wheat

While there is no floor price for wheat, the government has set an
unofficial target price below which it will purchase wheat to support
the market price. In 2004 there was no intervention. Based on market
interventions, the 2005 target price was approximately RMB 1,440/ton
(\$178/ton). The 2006 target price is forecast to remain unchanged.

### Seed Subsidy and Income Support 

In 2001 MOA started the seed subsidy program for wheat and has
subsequently expanded it to corn, rice and soybeans. The combined value
of the seed subsidy for wheat, rice, corn and soybean was RMB 3.87
billion (\$480 million) in 2005, up 36 percent from 2004. The program is
intended to expand production through improved seed quality and normally
provides a subsidy to seed companies so farmers can purchase high
quality seed at commodity prices. Funding is principally provided
through MOA and implementation is at the provincial level.

In response to MY03/04, 04/05 wheat imports, MOA has focused most
resources, in terms of implementation, on the wheat seed program. For
example, in Henan, the largest wheat producing province, the government
has selected specific counties for program implementation. In these
counties seed companies are given RMB 10/mu(\$18 /ha). The seed
companies then make discounted wheat seed available for RMB 1.5-2.0/kg,
slightly higher than the wheat commodity prices. Seed wheat usage
averages 10 kg/mu (150 Kg/Ha) in Henan province.

+--------------+-------------------+-----------------+-----------------+
| #            |                   |                 |                 |
| ##### MoA's  |                   |                 |                 |
| Seed Subsidy |                   |                 |                 |
|  Program on  |                   |                 |                 |
| Winter Wheat |                   |                 |                 |
+--------------+-------------------+-----------------+-----------------+
|              | Total Subsidy (in | Provinces       | Area Covered    |
|              | RMB)              |                 |                 |
+--------------+-------------------+-----------------+-----------------+
| 2004         | 100,000,000       | 6               | 50%             |
+--------------+-------------------+-----------------+-----------------+
| 2005         | 1,000,000,000     | 11              | 54%             |
+--------------+-------------------+-----------------+-----------------+

Implementation for other commodities varies depending on the commodity
and the province. In some cases it is more like the wheat program
discussed above, in others it is more consistent with income support
where the farmer is provided RMB 10-15/mu (or \$23/Ha) to purchase seed,
but what the farmer actually does with the payment is not monitored.

### Elimination of Agricultural Tax and Direct Payment 

In 2004 the government reduced the agricultural tax on farmland and
simultaneously introduced a system of direct payments to farmers.

For decades prior to 2004, there had been a 7 percent tax on
agricultural production. In March 2004, the government announced it
would eliminate the tax over five years, but provided the provinces the
option of moving faster if they chose. In 2006 the government stepped up
the process by announcing that in 2006 all the provinces would eliminate
the tax.

In 2004 the government also introduced a program of direct payments to
grain growers, also to be implemented at the discretion of the
provinces. Implementation is inconsistent across provinces, with some
providing the subsidy based on planted area and others based on quantity
produced. The payment program averaged about US\$18/ha, slightly less
than \$9 per average farm household in 2004. In 2005, the payment
averaged about \$10 per farm household.

While these two programmatic changes increased actual production,
reported production was also increased. Previously, provincial
government tax collectors hid taxable land from the central government
to fill local coffers. This type of non-compliance was most widespread
in corn production areas in northeastern China.

### Export Support for Corn

Only China National Cereals, Oils and Foodstuffs Corporation (COFCO) and
Jilin Grain Group are eligible to export corn. In order to receive
governmental export support the exporter must be exporting under an
export quota. Export support for corn consists of a value added tax
(VAT) rebate and a transportation subsidy. Only exporters can receive
the VAT rebate. Only government grain storage facilities are eligible to
receive transportation subsidies so, in general, only stored grain is
exported. In 2005 the Chinese government's total export support was
estimated at RMB 283/tons (\$35). This is up from 2004.

The VAT rebate is 13 percent of a fixed price determined by the
government rather than the actual FOB price. This base price is usually
less than the market price. In 2005 the government increased the base
price to RMB 1,100 (\$133) per ton, from RMB 860 (\$104), making the
rebate in 2005 RMB 143 (\$17/ton), up from RMB 114/ton (\$14/ton) in
2004.

The grain risk fund provides a transportation subsidy for corn moved out
of state grain reserves and into the export market. The grain risk fund
pays for the acquisition and storage of government grain. Sinograin and
their provincial counterparts receive a subsidy of RMB140/ton (\$17/ton)
for corn exported under the export quota.

## Tariff Rate Quotas (TRQ's)

Upon membership to the World Trade Organization (WTO), China instituted
Tariff Rate Quotas (TRQ) for wheat, rice, corn, and several other
commodities. These quotas were phased in and reached final levels in
2004. A percentage of the quota is reserved for non-state-owned
enterprises: 10 percent for wheat, 40 percent for corn and 50 percent
for rice (both short and long grain). In 2005, because of a bumper crop,
imports were lower than the previous year. Corn imports remain near
zero.

  ------------------------ ------------ ----------- -------- ---------------
  **China: Grain Tariff                                      
  Rate Quota Allocation                                      
  and Fill Rate in 2005                                      
  (metric tons)**                                            

  **Commodity**            **2005       **2005      **2005   **State
                           Tariff       Imports**   Fill     Enterprise
                           Quota**                  Rate**   Share**

  **Wheat**                9,636,000    3,555,000   37%      90%

  **Corn**                 7,200,000    2,308       0%       60%

  **Rice**                 5,320,000    514,000     10%      50%
  ------------------------ ------------ ----------- -------- ---------------

## Grain Yields 

Ideal weather conditions contributed to higher than average yields in
2004 and 2005. In addition to the favorable weather conditions, the
government seed support program has improved the yield for wheat and
rice in the last two years (2004/2005).

## 

## Market Prices and Grain Area

Wheat and rice area in MY06/07 is forecast to rise slightly in 2006
after a substantial increase in area and output in 2004 and 2005. While
the price for grains is down by about five percent in 2005 from the
previous year, they are still above historical averages. Despite
increased production, government price support programs have kept prices
close to recent highs.

MOA reported that corn acreage in MY05/06 reached a record high. Corn
acreage will be up slightly in MY06/07 as current programs support
expanded acreage and income support programs encourage reporting
previously untaxed land.

![](media/image2.wmf) Data from National Grain & Oilseed Information
Center

![](media/image3.wmf)

Data from National Statistical Bureau, data for 2005 and 2006 are
estimates by FAS Beijing

## Biotechnology and Biosafety

In July 2005, the Ministry of Agriculture's GMO office approved the
import and processing of NK603 ("Roundup Ready" corn), completing
approval of all eight GM corn events commercialized in the United
States. China has developed several varieties of transgenic rice, but
none have been commercialized. For further information about
biotechnology in China see the FAS GAIN report on Biotechnology.

## 

# Wheat 

## Production 

Wheat prices were up 50 percent in 2004, increasing both total
production and planted area in 2005. Wheat production in MY05/06 is
estimated to be 97 mmt, up 5 percent from the previous year. In both
MY04/05 and MY05/06 good weather and MOA's production support programs
contributed to good yields. Overall, the quality of MY05/06 wheat crop
was not as good as the previous year, in part because in some production
areas excessive rainfall close to harvest time reduced the crop's
quality. The acreage in MY05/06 is estimated to be 22.8 million Ha, up
6% from the previous year.

Wheat production in MY06/07 is forecast to be 97.5 mmt. Although wheat
prices in production regions are down slightly more than five percent
during 2005, planted area in MY06/07 is forecast to be 22.9 million Ha,
slightly higher than the previous year. This is in part because wheat
and other grains, are considered lower risk, stable, income crops when
compared with vegetables, rape seed, and cotton.

Winter wheat planting area accounts for more than 90 percent of the
total wheat planting area in China and is usually double-cropped with
corn.

## Consumption

Overall wheat consumption has been declining gradually, as consumer
incomes rise and their eating habits shift from a more starch-based to a
more meat-based diet. Per capita food-grain consumption is falling
steadily and the trend will continue. According to the National
Statistical Bureau, per capita consumption of grain in rural households
dropped to 218 kg in 2004 from 250 kg in 2000; per capita annual
consumption of grain by urban households has dropped to 78.2 kg in 2004
from 82 Kg in 2000.

A recent study by NSB in 2005 shows how grain consumption is allocated
among wheat, rice and corn.

  ---------------- ------------------ ------------------ ------------------
  Cereal's share                                         
  in Per Capita                                          
  Grain                                                  
  Consumption in                                         
  Urban/Rural                                            
  Household in                                           
  2004                                                   

                   Wheat              Rice               Corn

  Urban Household  29.6 %             59.4%              4.55%

  Rural Household  33.7%              54.9%              7.5%
  ---------------- ------------------ ------------------ ------------------

Source: National Statistical Bureau

As urban demand for traditional wheat products (baozi, mantou) declines
in favor of convenience foods, including instant noodles, biscuits and
bakery products, wheat quality is becoming more of a factor for millers.
Unlike traditional homemade or home-style Chinese food products, flour
for processed foods requires specialized gluten content and consistent
quality. China's small-scale farmers often cannot supply this. Flour
millers use imported wheat to blend with domestic wheat to produce a
more consistent product. The milling industry's import demand for
consistent quality wheat, both hard and soft varieties, is expected to
rise in the coming years.

The flour millers purchase imported wheat either by importing it
directly or at auctions held by Sinograin or their provincial
counterparts. Imported wheat purchased at these auctions is usually kept
for three or four years before sale. Even after three or four years,
however, the quality is still better than that of domestic wheat.

**Trade**

Good harvests in MY05/06 meant that wheat imports for MY05/06 were down
5 mmt from the previous marketing year to an estimated 1.3 mmt. Wheat
imports are forecast to remain unchanged at 1.3 mmt in MY06/07.

China is not a significant wheat exporter. Most of China's wheat and
flour products go to nearby Asian countries. Wheat exports for MY05/06
are estimated at 800,000 mt, as are forecast exports for MY06/07.

## Stocks 

The government classifies data on all grain stocks as a national secret.
Previously, the National Statistical Bureau (NSB) surveyed the stock
levels of government entities, but survey data was not public and
incomplete, at best. In 2005 NSB adopted a new survey system intended to
include data on grain held by the private sector as well, including
processors, feed millers, wholesale markets, retailers and chain stores.
It remains unclear whether the new system will produce more reliable or
accurate stock data.

Post estimates that stocks at the beginning of MY05/06 and MY06/07 will
be 39 and 37 million tons, respectively, adequate for smooth marketing
operations.

# Corn 

## Production

Corn production for MY05/06 is estimated at 134 mmt, up 3 percent from
previous year. Favorable weather and increased acreage contributed to
the high yield. Corn acreage in MY05/06 is estimated at 26.2 million Ha.
Higher prices, tax policies and prior underreporting land increased
grain production (see tax policy section). Corn production in MY06/07 is
forecast at 132, 2 mmt lower than the previous year. Yields are forecast
to be higher than average but lower than the previous year. Corn area
for MY06/07 is forecast to be slightly higher than the MY05/06 record
high.

## Consumption 

### Feed consumption

Post forecasts that the feed corn growth rate will be about 2 percent in
MY05/06 and MY06/07. China's has increased meat production between 3-6
percent annually in the past five years. Efficient feed mixes can reduce
grain consumption by 25 percent. In addition, increasingly, corn
byproducts from the starch and brewery industry also substitute for
grain use in feed. Because of the efficiencies inherent in feed mixes,
post estimates that that feed grain use, including corn, rice and wheat,
has grown at less than the rate of increase in meat production.

Reflecting a trend towards more use of feed, China's feed production
rose 6.6 percent year-on-year to 103 mmt in CY 2005, according to the
China Feed Industry Office. This trend will continue as the meat and
poultry sectors commercialized and develop more large-scale production
facilities. More large-scale production is a result of increase
competitiveness and backyard farm's vulnerability animal and bird
disease outbreaks. The current estimate is that about 40 percent of
swine and 70 percent of poultry are raised on commercial farms.

  ------------ --------------- --------------- --------------- ----------------
  China: Feed                                                  
  Production                                                   
  by Type                                                      
  (1,000 tons)                                                 

               Total           Compound        Concentrate     Premix

  2003         87,120          64,280          19,580          3,260

  2004         96,600          70,310          22,240          4,060

  2005         103,000         73,710          24,460          4,780

  Data from                                                    
  China Feed                                                   
  Industry                                                     
  Office                                                       
  ------------ --------------- --------------- --------------- ----------------

### Industrial Consumption

Post estimates that corn consumption in industrial sectors totaled 23
mmt in 2005, up by about 3 mmt from the previous year. Industrial
consumption of corn is composed of starch manufacturing and ethanol.
China's starch and ethanol sectors have grown more than 10 percent
annually in the last five years.

While corn is the principal ingredient for these two sectors, actual
corn use depends on the relative costs of corn substitutes, including
wheat, rice, sweet potatoes and cassava. China's free trade agreement
with Thailand brought tariffs down on dry cassava chips. As a result,
imports are up 50 percent since 2002 to 3 mmt in MY05/06. Industry
estimates are that the imported dry cassava chips used in the starch and
ethanol sectors was equivalent to more than 3 mmt of corn in MY05/06.

+------------+-------+---------+---------+---------+---------+---------+
| ###### Ch  |       |         |         |         |         |         |
| ina\'s Cas |       |         |         |         |         |         |
| sava (0714 |       |         |         |         |         |         |
| 10) Import |       |         |         |         |         |         |
| s from the |       |         |         |         |         |         |
|  World by  |       |         |         |         |         |         |
| Metric Ton |       |         |         |         |         |         |
|  2000-2005 |       |         |         |         |         |         |
+------------+-------+---------+---------+---------+---------+---------+
|            | 2000  | 2001    | 2002    | 2003    | 2004    | 2005    |
+------------+-------+---------+---------+---------+---------+---------+
| **Total    | *     | **1,95  | **1,76  | **2,36  | **3,44  | **3,33  |
| Imports**  | *256, | 0,043** | 0,294** | 8,260** | 2,412** | 5,415** |
|            | 573** |         |         |         |         |         |
+------------+-------+---------+---------+---------+---------+---------+
| Thailand   | 6     | 1,      | 1,      | 1,      | 2,      | 2,      |
|            | 1,411 | 629,870 | 425,371 | 874,362 | 734,389 | 695,576 |
+------------+-------+---------+---------+---------+---------+---------+
| Vietnam    | 3     | 156,996 | 212,878 | 453,132 | 522,296 | 411,573 |
|            | 4,081 |         |         |         |         |         |
+------------+-------+---------+---------+---------+---------+---------+
| Indonesia  | 16    | 163,155 | 122,040 | 40,766  | 185,728 | 228,265 |
|            | 1,080 |         |         |         |         |         |
+------------+-------+---------+---------+---------+---------+---------+

#### Starch Production 

Corn-starch accounts for 85 percent of national total starch output. The
total corn used for starch manufacturing reached about 12 mmt in 2005,
up 15 percent from the previous year. Industrial and food processing
demands for starch will continue to grow in the coming years.

#### Ethanol Production

Total grain consumption in MY05/06 by the fuel-ethanol sector is
estimated at about 2 mmt, of which about 1.4 mmt is corn. In response to
the 10th five-year plan objectives (2001-2005), China built four
fuel-ethanol plants for processing grains including corn, wheat and rice
into ethanol. The total planed capacity is 1.02 mmt of ethanol annually.
In 2005, total output reached 700,000 metric tons. In 2006, all four
plants will operate at full capacity and process approximately 3 mmt of
grain, of which 2 mmt will be corn.

Both central and provincial governments have invested heavily to support
the fuel-ethanol sector. State media reports that the government offered
RMB 1,800/ton (\$225/ton) as a subsidy for corn-based ethanol in 2005.
In 2006, the government reduced the subsidy by an average of RMB 300/ton
(\$37.5/ton) for the four plants. The reduced subsidy signals the
government's intention to curb the expansion of the fuel ethanol plants
based on grain production.

Post believes that there will be limited expansion of grain based
ethanol production. However, during the 11th five-year plan (2006-2009),
the National Development and Reform Commission (NDRC) committed to
expand the fuel-ethanol production. The additional ethanol production
capacity will exceed 1 mmt. This grogram will use alternative feedstock
rather than grains, however. The new plants will locate in southern
provinces where cassava, cane molasses, sweet potatoes and sweet sorghum
are produced.

## Trade

Imports of corn are expected to be about 20,000 mt in MY05/06. In
MY06/07 Post forecasts 1 MMT of imports driven by increased feed
consumption from the meat and poultry sectors and increased demand from
the starch and fuel-ethanol sectors.

While corn is produced principally in northern China it is consumed
throughout China, including in the south. As a result, there is often a
price differential between the cost of corn in northern and southern
China. As of January 2006, the landed price of U.S. corn in Guangzhou
(southern China) is about the same price as local corn. If local corn is
significantly higher than U.S. corn by the end of MY05/06, end users
will make trial corn imports.

Corn imports require a bio-safety certificate, from Ministry of
Agriculture, and quarantine permits from General Administration of
Quality Supervision, Inspection and Quarantine (AQSIQ). Post is aware
that importers began requested bio-safety certificates in early 2006.
Importers have not filed for a quarantine permit. Under the "Pest Risk
Analysis Management Regulation" effective in 2003, in order to import
new commodities there must be a pest risk assessment (PRA). Initially
AQSIQ indicated that importers could not seek a quarantine permit
because there was no PRA for corn. AQSIQ told Post informally that the
application procedure for a corn quarantine permit would be the same as
for soybean and wheat so there would be no PRA requirement. Post will
monitor the situation.

Corn exports during October-December 2005 were 1.5 mmt. Corn exports for
MY05/06 are estimated at 4 mmt. Corn exports for MY06/07 are forecast at
2 mmt. Rising domestic demand for corn for feed and industrial use and
land limitations on expanding production drives this reduction.

The Chinese government is involved in corn exports (see policy section).
The National Development & Reform Commission, the State Grain
Administration, the Ministry of Finance and the Agricultural Development
Bank jointly determine the export quota and the transportation subsidy.
In November 2005, the government issued 4 mmt of corn export quota,
valid through February 2006. An estimated 2.5 mmt has been contracted
under this export quota. Post forecasts the government will not issue
additional quota for export if domestic corn prices remain at their
current levels.

## Stocks

Ending stocks in MY 05/06 are estimated at 39.5 mmt and ending stocks in
MY06/07 are forecast at 35.5 as consumption outpaces domestic
production. The majority of the state corn stocks are held in the
northern production provinces of Heilongjiang, Jilin and Inner Mongolia.
Central or provincial governments pay all the storage costs, estimated
at approximately RMB 100/ton (US12.39) per year. Because of the cost of
transportation to bring the corn down to users in the south, these
provinces lobby the central government to provide export support and
transportation subsidies. China's corn exports mostly go to South Korea
and Japan.

# 

# Rice 

## Production

Rice production is estimated at 182 mmt (unmilled) in MY05/06, up 1.5
percent over the previous year. Estimated area planted is 29 million Ha,
up 2 percent over the previous year. Early-season rice production is
reportedly down 1.3 percent to 31.79 mmt from the previous year, due to
lower yields from flood and typhoon damage in the costal regions.
Acreage is up 1 percent, however. Because of a slight increase in area
and higher than average yields, late-season rice production is estimated
at 150 mmt, up 2 percent from the previous year.

Rice output for MY06/07 is forecast at 184 mmt, up 1 percent from the
previous year, despite a 6 percent drop in the retail price for rice.
This is a result of the price floor, which has stabilized rice prices
and made rice an attractive, stable, crop for risk-averse farmers. Rice
acreage in MY06/07 is forecast at 29.2 million Ha, up slightly from the
previous year.

## Consumption

Post revised MY05/06 consumption data down by 3 mmt from the previous
estimate of 135 mmt (milled). The decline in market price indicates that
stock levels are currently adequate. Rice consumption is forecast to
increase slightly in MY06/07 to 132 mmt (milled).

An estimated 60 percent of the urban population and 55 percent of the
rural population consume rice as a staple food. Indica rice varieties
are mainly consumed in southern China. Japonica rice varieties are
mainly consumed in northern China. The per capita consumption of rice as
a staple food is declining as incomes rise, but rice use in the food
processing sector is increasing.

In addition to food use, low quality early rice varieties and stale rice
reserves are used to feed swine and poultry at both commercial farms and
in rural households. There is no reliable data on feed use of rice; Post
estimates at least 10 mmt (unmilled) annually.

## Trade 

As a relatively efficient rice producer, China will not be a significant
rice importer. While China has signed quarantine protocols on rice
imports with Thailand, Uruguay, Vietnam and Pakistan, most imports were
indica varieties mainly from Thailand and Vietnam in CY2004 and 2005.
Rice imports for MY05/06 are estimated at 700,000 metric tons. Rice
imports for MY06/07 are forecast at 800,000 metric tons, 100,000 higher
than the previous year.

Since 2004, the government has tightened controls on rice exports. From
2000 to 2003, China exported about 2 mmt yearly. At that time, most of
China's rice exports were low quality indica to African countries. As
rice stock levels continue to fall, such rice will be less available.
China also exports japonica varieties to Japan, Russia and South Korea,
however. These exports are small in volume but highly profitable, and
are forecast to continue. Rice exports in MY05/06 are estimated at
800,000 metric tons. Rice exports in MY06/07 are forecast unchanged at
800,000 metric tons.

## Stocks

In MY05/06, the estimate for consumption is higher than that for
domestic production. Consequently, the estimated stock drawdown is 5 mmt
from the previous year to 33 mmt (milled). In MY06/07, the forecast for
consumption is higher than that of domestic production, making the
forecast stock level 29.7 mmt, 3mmt lower than the previous year. Rice
stocks are adequate in MY05/06 and MY06/07.

# Barley

MY05/06 barley area is estimated at 850,000 Ha, up 8 percent over the
previous year as a result of increased demand from brewery sector.
Production is estimated at 3.4 mmt, up 5 percent over the previous year.
Post forecasts that both barley area and production in MY06/07 will rise
slightly over the previous year, as a result of increased demand from
both the feed and brewery sectors.

Barley in China is mostly used for brewing. Domestic barley production
is inadequate to supply the expanding brewery industry. Industry sources
estimate that China's beer production in 2005 will exceed 30 million
kilolitres. The sector's total demand for malting barley is estimated at
around 4 mmt annually. In MY04/05 China imported 2 mmt of malting barley
from Australia, Canada, and France, 500,000 mt higher than the previous
year. Barley imports in MY06/07, are forecast up slightly if the
international feed barley price remains stable. Should international
prices increase, feed barley or other grains could be substituted.

Currently, neither MOA nor provincial authorities cover barley, nor is
it a crop with production assistance.

  ------------ ----------- ----------- ----------- ----------- -----------
  China's Beer                                                 
  Production                                                   
  (in 1, 000                                                   
  liter)                                                       

  2002         Growth      2003        Growth      2004        Growth

  24,027       5%          25,405      6%          29,101      14%
  ------------ ----------- ----------- ----------- ----------- -----------

# Sorghum

MY05/06 sorghum area is estimated to drop slightly from the previous
year as farmers shift to corn. MY06/07 sorghum area and production are
forecast to fall again. Sorghum is mostly planted on marginal land with
no irrigation. As overall grain prices rose in 2004, farmers shifted
away from sorghum to grain crops with higher returns.

While some sorghum is used for feed, the majority is used for alcohol
production. Production of sorghum based hard liquor is estimated at 3
mmt for MY05/06, down from the previous year. Hard liquor consumption is
also down and the decline is forecast to continue.

Currently, neither MOA nor provincial authorities cover sorghum as an
important feed grain, nor is it a crop with production assistance.

+-----------+-----------+----------+----------+----------+-----------+
| ###### C  |           |          |          |          |           |
| hina hard |           |          |          |          |           |
|  Liquor P |           |          |          |          |           |
| roduction |           |          |          |          |           |
|  in 1000, |           |          |          |          |           |
| 000 liter |           |          |          |          |           |
+-----------+-----------+----------+----------+----------+-----------+
| Year      | 2000      | 2001     | 2002     | 2003     | 2004      |
+-----------+-----------+----------+----------+----------+-----------+
|           | 4,761     | 8,167    | 7,396    | 6,475    | 3,117     |
+-----------+-----------+----------+----------+----------+-----------+
| Growth    | -5.2%     | 71.5%    | -9.4%    | -12.5%   | -51.9%    |
| Rate      |           |          |          |          |           |
+-----------+-----------+----------+----------+----------+-----------+

Source: National Statistical Bureau

# Statistical Tables

## 

## PSD tables

### Table 1. Wheat PSD Table

### 

+----------------+---------+-------+-------+--------+------+--------+
| **Country**    | ######  |       |       |        |      |        |
|                | # China |       |       |        |      |        |
|                | , Peopl |       |       |        |      |        |
|                | es Repu |       |       |        |      |        |
|                | blic of |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| **Commodity**  | **      |       |       |        | (    |        |
|                | Wheat** |       |       |        | 1000 |        |
|                |         |       |       |        | HA)( |        |
|                |         |       |       |        | 1000 |        |
|                |         |       |       |        | MT)  |        |
+----------------+---------+-------+-------+--------+------+--------+
|                | 2004    | Re    | 2005  | Es     | 2006 | Fo     |
|                |         | vised |       | timate |      | recast |
+----------------+---------+-------+-------+--------+------+--------+
|                | USDA    | Post  | USDA  | Post   | USDA | Post   |
|                | O       | Estim | Off   | Est    | Offi | Est    |
|                | fficial | ate\[ | icial | imate\ | cial | imate\ |
|                | \[Old\] | New\] | \[    | [New\] | \[O  | [New\] |
|                |         |       | Old\] |        | ld\] |        |
+----------------+---------+-------+-------+--------+------+--------+
| **Market Year  |         | 07    |       | 0      |      | 0      |
| Begin**        |         | -2004 |       | 7-2005 |      | 7-2006 |
+----------------+---------+-------+-------+--------+------+--------+
| Area Harvested | 21626   | 21626 | 22700 | 22850  | 0    | 22950  |
+----------------+---------+-------+-------+--------+------+--------+
| Beginning      | 43293   | 44943 | 38819 | 42116  | 3    | 39116  |
| Stocks         |         |       |       |        | 5319 |        |
+----------------+---------+-------+-------+--------+------+--------+
| Production     | 91950   | 91952 | 97000 | 97000  | 0    | 97500  |
+----------------+---------+-------+-------+--------+------+--------+
| TOTAL Mkt. Yr. | 6747    | 7313  | 1500  | 1300   | 0    | 1300   |
| Imports        |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| Jul-Jun        | 6747    | 7313  | 1500  | 1300   | 0    | 1300   |
| Imports        |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| Jul-Jun Import | 1786    | 2117  | 0     | 500    | 0    | 500    |
| U.S.           |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| TOTAL SUPPLY   | 141990  | 1     | 1     | 140416 | 3    | 137916 |
|                |         | 44208 | 37319 |        | 5319 |        |
+----------------+---------+-------+-------+--------+------+--------+
| TOTAL Mkt. Yr. | 1171    | 792   | 1000  | 800    | 0    | 800    |
| Exports        |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| Jul-Jun        | 1171    | 792   | 1000  | 800    | 0    | 800    |
| Exports        |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| Feed Dom.      | 4000    | 2500  | 3500  | 2000   | 0    | 1600   |
| Consumption    |         |       |       |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| TOTAL Dom.     | 102000  | 1     | 1     | 100500 | 0    | 100000 |
| Consumption    |         | 01300 | 01000 |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+
| Ending Stocks  | 38819   | 42116 | 35319 | 39116  | 0    | 37116  |
+----------------+---------+-------+-------+--------+------+--------+
| TOTAL          | 141990  | 1     | 1     | 140416 | 0    | 137916 |
| DISTRIBUTION   |         | 44208 | 37319 |        |      |        |
+----------------+---------+-------+-------+--------+------+--------+

### Table 2. Corn PSD Table

### 

+----------------+--------+-------+-------+-------+-------+----------+
| **Country**    | #####  |       |       |       |       |          |
|                | ### Ch |       |       |       |       |          |
|                | ina, P |       |       |       |       |          |
|                | eoples |       |       |       |       |          |
|                |  Repub |       |       |       |       |          |
|                | lic of |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| **Commodity**  | **     |       |       |       | (1000 |          |
|                | Corn** |       |       |       | HA)   |          |
|                |        |       |       |       | (1000 |          |
|                |        |       |       |       | MT)   |          |
+----------------+--------+-------+-------+-------+-------+----------+
|                | 2004   | Re    | 2005  | Est   | 2006  | Forecast |
|                |        | vised |       | imate |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
|                | USDA   | Post  | USDA  | Post  | USDA  | Post     |
|                | Of     | Estim | Off   | Estim | Off   | Estimat  |
|                | ficial | ate\[ | icial | ate\[ | icial | e\[New\] |
|                | \      | New\] | \[    | New\] | \[    |          |
|                | [Old\] |       | Old\] |       | Old\] |          |
+----------------+--------+-------+-------+-------+-------+----------+
| **Market Year  |        | 10    |       | 10    |       | 10-2006  |
| Begin**        |        | -2004 |       | -2005 |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Area Harvested | 25446  | 25446 | 26200 | 26200 | 0     | 26250    |
+----------------+--------+-------+-------+-------+-------+----------+
| Beginning      | 44852  | 44852 | 36055 | 40555 | 30155 | 39575    |
| Stocks         |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Production     | 130290 | 1     | 1     | 1     | 0     | 132000   |
|                |        | 30290 | 34000 | 34000 |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| TOTAL Mkt. Yr. | 2      | 2     | 100   | 20    | 0     | 1000     |
| Imports        |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Oct-Sep        | 2      | 2     | 100   | 20    | 0     | 1000     |
| Imports        |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Oct-Sep Import | 2      | 1     | 0     | 0     | 0     | 600      |
| U.S.           |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| TOTAL SUPPLY   | 175144 | 1     | 1     | 1     | 30155 | 172575   |
|                |        | 75144 | 70155 | 74575 |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| TOTAL Mkt. Yr. | 7589   | 7589  | 6000  | 4000  | 0     | 2000     |
| Exports        |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Oct-Sep        | 7589   | 7589  | 6000  | 4000  | 0     | 2000     |
| Exports        |        |       |       |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Feed Dom.      | 98500  | 98000 | 1     | 99000 | 0     | 100500   |
| Consumption    |        |       | 00000 |       |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| TOTAL Dom.     | 131500 | 1     | 1     | 1     | 0     | 135000   |
| Consumption    |        | 27000 | 34000 | 31000 |       |          |
+----------------+--------+-------+-------+-------+-------+----------+
| Ending Stocks  | 36055  | 40555 | 30155 | 39575 | 0     | 35575    |
+----------------+--------+-------+-------+-------+-------+----------+
| TOTAL          | 175144 | 1     | 1     | 1     | 0     | 172575   |
| DISTRIBUTION   |        | 75144 | 70155 | 74575 |       |          |
+----------------+--------+-------+-------+-------+-------+----------+

###  

### Table 3. Rice PSD Table

+----------------+------+---------+-------+---------+----+----------+
| **Country**    | ###  |         |       |         |    |          |
|                | #### |         |       |         |    |          |
|                | # Ch |         |       |         |    |          |
|                | ina, |         |       |         |    |          |
|                |  Peo |         |       |         |    |          |
|                | ples |         |       |         |    |          |
|                |  Rep |         |       |         |    |          |
|                | ubli |         |       |         |    |          |
|                | c of |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| **Commodity**  | **R  |         |       |         | (  |          |
|                | ice, |         |       |         | 10 |          |
|                | Mill |         |       |         | 00 |          |
|                | ed** |         |       |         | HA |          |
|                |      |         |       |         | )( |          |
|                |      |         |       |         | 10 |          |
|                |      |         |       |         | 00 |          |
|                |      |         |       |         | M  |          |
|                |      |         |       |         | T) |          |
+----------------+------+---------+-------+---------+----+----------+
|                | 2004 | Revised | 2005  | E       | 20 | Forecast |
|                |      |         |       | stimate | 06 |          |
+----------------+------+---------+-------+---------+----+----------+
|                | USDA | Post    | USDA  | Post    | US | Post     |
|                | Offi | E       | Off   | E       | DA | Estimat  |
|                | cial | stimate | icial | stimate | Of | e\[New\] |
|                | \[O  | \[New\] | \[    | \[New\] | fi |          |
|                | ld\] |         | Old\] |         | ci |          |
|                |      |         |       |         | al |          |
|                |      |         |       |         | \  |          |
|                |      |         |       |         | [O |          |
|                |      |         |       |         | ld |          |
|                |      |         |       |         | \] |          |
+----------------+------+---------+-------+---------+----+----------+
| **Market Year  |      | 01-2005 |       | 01-2006 |    | 01-2007  |
| Begin**        |      |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| Area Harvested | 2    | 28379   | 29000 | 29000   | 0  | 29200    |
|                | 8379 |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| Beginning      | 4    | 44928   | 35144 | 38144   | 2  | 33044    |
| Stocks         | 4928 |         |       |         | 72 |          |
|                |      |         |       |         | 44 |          |
+----------------+------+---------+-------+---------+----+----------+
| Milled         | 12   | 125363  | 1     | 127400  | 0  | 129000   |
| Production     | 5363 |         | 27400 |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| Rough          | 17   | 179090  | 1     | 182000  | 0  | 184286   |
| Production     | 9090 |         | 82000 |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| MILLING RATE   | 7000 | 7000    | 7000  | 7000    | 0  | 7000     |
| (.9999)        |      |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| TOTAL Imports  | 609  | 609     | 600   | 500     | 0  | 800      |
+----------------+------+---------+-------+---------+----+----------+
| Jan-Dec        | 609  | 609     | 600   | 500     | 0  | 800      |
| Imports        |      |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| Jan-Dec Import | 0    | 0       | 0     | 0       | 0  | 0        |
| U.S.           |      |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| TOTAL SUPPLY   | 17   | 170900  | 1     | 166044  | 2  | 162844   |
|                | 0900 |         | 63144 |         | 72 |          |
|                |      |         |       |         | 44 |          |
+----------------+------+---------+-------+---------+----+----------+
| TOTAL Exports  | 656  | 656     | 700   | 800     | 0  | 800      |
+----------------+------+---------+-------+---------+----+----------+
| Jan-Dec        | 656  | 656     | 700   | 800     | 0  | 800      |
| Exports        |      |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| TOTAL Dom.     | 13   | 132100  | 1     | 132200  | 0  | 132300   |
| Consumption    | 5100 |         | 35200 |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| Ending Stocks  | 3    | 38144   | 27244 | 33044   | 0  | 29744    |
|                | 5144 |         |       |         |    |          |
+----------------+------+---------+-------+---------+----+----------+
| TOTAL          | 17   | 170900  | 1     | 166044  | 0  | 162844   |
| DISTRIBUTION   | 0900 |         | 63144 |         |    |          |
+----------------+------+---------+-------+---------+----+----------+

### 

### 

### 

### 

### 

### 

### 

### 

###  

### Table 4. Barley PSD Table

### 

+----------------+---------+-------+-------+--------+-------+--------+
| **Country**    | ####### |       |       |        |       |        |
|                | # China |       |       |        |       |        |
|                | , Peopl |       |       |        |       |        |
|                | es Repu |       |       |        |       |        |
|                | blic of |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| **Commodity**  | **B     |       |       |        | (1000 |        |
|                | arley** |       |       |        | HA)   |        |
|                |         |       |       |        | (1000 |        |
|                |         |       |       |        | MT)   |        |
+----------------+---------+-------+-------+--------+-------+--------+
|                | 2004    | Re    | 2005  | Es     | 2006  | Fo     |
|                |         | vised |       | timate |       | recast |
+----------------+---------+-------+-------+--------+-------+--------+
|                | USDA    | Post  | USDA  | Post   | USDA  | Post   |
|                | O       | Estim | Off   | Est    | Off   | Est    |
|                | fficial | ate\[ | icial | imate\ | icial | imate\ |
|                | \[Old\] | New\] | \[    | [New\] | \[    | [New\] |
|                |         |       | Old\] |        | Old\] |        |
+----------------+---------+-------+-------+--------+-------+--------+
| **Market Year  |         | 10    |       | 1      |       | 1      |
| Begin**        |         | -2004 |       | 0-2005 |       | 0-2006 |
+----------------+---------+-------+-------+--------+-------+--------+
| Area Harvested | 800     | 785   | 800   | 850    | 0     | 880    |
+----------------+---------+-------+-------+--------+-------+--------+
| Beginning      | 276     | 409   | 325   | 327    | 225   | 372    |
| Stocks         |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Production     | 2900    | 3222  | 2800  | 3400   | 0     | 3500   |
+----------------+---------+-------+-------+--------+-------+--------+
| TOTAL Mkt. Yr. | 2049    | 2049  | 2100  | 2100   | 0     | 2200   |
| Imports        |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Oct-Sep        | 2049    | 2049  | 2100  | 2100   | 0     | 2200   |
| Imports        |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Oct-Sep Import | 0       | 0     | 0     | 0      | 0     | 0      |
| U.S.           |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| TOTAL SUPPLY   | 5225    | 5680  | 5225  | 5827   | 225   | 6072   |
+----------------+---------+-------+-------+--------+-------+--------+
| TOTAL Mkt. Yr. | 0       | 3     | 0     | 5      | 0     | 5      |
| Exports        |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Oct-Sep        | 0       | 3     | 0     | 5      | 0     | 5      |
| Exports        |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Feed Dom.      | 1000    | 1500  | 950   | 1400   | 0     | 1400   |
| Consumption    |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| TOTAL Dom.     | 4900    | 5350  | 5000  | 5450   | 0     | 5650   |
| Consumption    |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+
| Ending Stocks  | 325     | 327   | 225   | 372    | 0     | 417    |
+----------------+---------+-------+-------+--------+-------+--------+
| TOTAL          | 5225    | 5680  | 5225  | 5827   | 0     | 6072   |
| DISTRIBUTION   |         |       |       |        |       |        |
+----------------+---------+-------+-------+--------+-------+--------+

### Table 5. Sorghum PSD Table

+----------------+---------+-------+------+--------+-------+---------+
| **Country**    | ####### |       |      |        |       |         |
|                | # China |       |      |        |       |         |
|                | , Peopl |       |      |        |       |         |
|                | es Repu |       |      |        |       |         |
|                | blic of |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| **Commodity**  | **So    |       |      |        | (1000 |         |
|                | rghum** |       |      |        | HA)   |         |
|                |         |       |      |        | (1000 |         |
|                |         |       |      |        | MT)   |         |
+----------------+---------+-------+------+--------+-------+---------+
|                | 2004    | Re    | 2005 | Es     | 2006  | F       |
|                |         | vised |      | timate |       | orecast |
+----------------+---------+-------+------+--------+-------+---------+
|                | USDA    | Post  | USDA | Post   | USDA  | Post    |
|                | O       | Estim | Offi | Est    | Off   | E       |
|                | fficial | ate\[ | cial | imate\ | icial | stimate |
|                | \[Old\] | New\] | \[O  | [New\] | \[    | \[New\] |
|                |         |       | ld\] |        | Old\] |         |
+----------------+---------+-------+------+--------+-------+---------+
| **Market Year  |         | 10    |      | 1      |       | 10-2006 |
| Begin**        |         | -2004 |      | 0-2005 |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Area Harvested | 568     | 568   | 600  | 550    | 0     | 520     |
+----------------+---------+-------+------+--------+-------+---------+
| Beginning      | 247     | 247   | 156  | 156    | 136   | 141     |
| Stocks         |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Production     | 2328    | 2328  | 2400 | 2300   | 0     | 2200    |
+----------------+---------+-------+------+--------+-------+---------+
| TOTAL Mkt. Yr. | 9       | 9     | 5    | 10     | 0     | 15      |
| Imports        |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Oct-Sep        | 9       | 9     | 5    | 10     | 0     | 15      |
| Imports        |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Oct-Sep Import | 0       | 0     | 0    | 0      | 0     | 0       |
| U.S.           |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| TOTAL SUPPLY   | 2584    | 2584  | 2561 | 2466   | 136   | 2356    |
+----------------+---------+-------+------+--------+-------+---------+
| TOTAL Mkt. Yr. | 28      | 28    | 25   | 25     | 0     | 20      |
| Exports        |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Oct-Sep        | 28      | 28    | 25   | 25     | 0     | 20      |
| Exports        |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Feed Dom.      | 400     | 400   | 400  | 400    | 0     | 200     |
| Consumption    |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| TOTAL Dom.     | 2400    | 2400  | 2400 | 2300   | 0     | 2200    |
| Consumption    |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+
| Ending Stocks  | 156     | 156   | 136  | 141    | 0     | 136     |
+----------------+---------+-------+------+--------+-------+---------+
| TOTAL          | 2584    | 2584  | 2561 | 2466   | 0     | 2356    |
| DISTRIBUTION   |         |       |      |        |       |         |
+----------------+---------+-------+------+--------+-------+---------+

##  

## Price Tables

### Table 6. Wheat Price Table

+---------------------------+------------------+-----------------------+
| #                         |                  |                       |
| ##### China Average Wheat |                  |                       |
|  (Grade2) Wholesale Price |                  |                       |
+---------------------------+------------------+-----------------------+
| (Renminbi Per Metric Ton, |                  |                       |
| USD 1.00 = RMB 8.27)      |                  |                       |
+---------------------------+------------------+-----------------------+
| National Average          | Producing        | Consuming Region/2    |
|                           | Region/1         |                       |
+---------------------------+------------------+-----------------------+
| January (2004)            | 1,410            | 1,540                 |
+---------------------------+------------------+-----------------------+
| February                  | 1,440            | 1,550                 |
+---------------------------+------------------+-----------------------+
| March                     | 1,640            | 1,650                 |
+---------------------------+------------------+-----------------------+
| April                     | 1,630            | 1,670                 |
+---------------------------+------------------+-----------------------+
| May                       | 1,610            | 1,610                 |
+---------------------------+------------------+-----------------------+
| June                      | 1,580            | 1,610                 |
+---------------------------+------------------+-----------------------+
| July                      | 1,560            | 1,610                 |
+---------------------------+------------------+-----------------------+
| August                    | 1,600            | 1,640                 |
+---------------------------+------------------+-----------------------+
| September                 | 1,630            | 1,690                 |
+---------------------------+------------------+-----------------------+
| October                   | 1,610            | 1,665                 |
+---------------------------+------------------+-----------------------+
| November                  | 1,635            | 1,675                 |
+---------------------------+------------------+-----------------------+
| December                  | 1,610            | 1,685                 |
+---------------------------+------------------+-----------------------+
| January (2005)            | 1,570            | 1,703                 |
+---------------------------+------------------+-----------------------+
| February                  | 1,553            | 1,683                 |
+---------------------------+------------------+-----------------------+
| March                     | 1,530            | 1,667                 |
+---------------------------+------------------+-----------------------+
| April                     | 1,503            | 1,637                 |
+---------------------------+------------------+-----------------------+
| May                       | 1,470            | 1,607                 |
+---------------------------+------------------+-----------------------+
| June                      | 1,453            | 1,580                 |
+---------------------------+------------------+-----------------------+
| July                      | 1,473            | 1,587                 |
+---------------------------+------------------+-----------------------+
| August                    | 1,445            | 1,527                 |
+---------------------------+------------------+-----------------------+
| September                 | 1,455            | 1,533                 |
+---------------------------+------------------+-----------------------+
| October                   | 1,475            | 1,533                 |
+---------------------------+------------------+-----------------------+
| November                  | 1,455            | 1,533                 |
+---------------------------+------------------+-----------------------+
| December                  | 1,435            | 1,517                 |
+---------------------------+------------------+-----------------------+
| January (2006)            | 1,438            | 1,493                 |
+---------------------------+------------------+-----------------------+
| /1 Heilongjiang,          |                  |                       |
| Shandong, Henan,Shanxi    |                  |                       |
+---------------------------+------------------+-----------------------+
| /2 Beijing,               |                  |                       |
| Tianjin,Fujian            |                  |                       |
+---------------------------+------------------+-----------------------+
| Source: China National    |                  |                       |
| Grain and Oils            |                  |                       |
| Information Center        |                  |                       |
+---------------------------+------------------+-----------------------+

###  

### Table 7. Corn Price Table

+------------------------------+------------------+-------------------+
| ###### China\'s A            |                  |                   |
| verage Corn Wholesale Prices |                  |                   |
+------------------------------+------------------+-------------------+
| (Renminbi Per Metric Ton,    |                  |                   |
| USD 1.00 = RMB 8.27)         |                  |                   |
+------------------------------+------------------+-------------------+
| National Average             | Producing        | Consuming         |
|                              | Region/1         | Region/2          |
+------------------------------+------------------+-------------------+
| January (2004)               | 1,178            | 1,355             |
+------------------------------+------------------+-------------------+
| February                     | 1,153            | 1,318             |
+------------------------------+------------------+-------------------+
| March                        | 1,185            | 1,355             |
+------------------------------+------------------+-------------------+
| April                        | 1,270            | 1,415             |
+------------------------------+------------------+-------------------+
| May                          | 1,290            | 1,408             |
+------------------------------+------------------+-------------------+
| June                         | 1,293            | 1,413             |
+------------------------------+------------------+-------------------+
| July                         | 1,315            | 1,440             |
+------------------------------+------------------+-------------------+
| August                       | 1,325            | 1,460             |
+------------------------------+------------------+-------------------+
| September                    | 1,290            | 1,435             |
+------------------------------+------------------+-------------------+
| October                      | 1,200            | 1,385             |
+------------------------------+------------------+-------------------+
| November                     | 1,140            | 1,305             |
+------------------------------+------------------+-------------------+
| December                     | 1,120            | 1,300             |
+------------------------------+------------------+-------------------+
| January (2005)               | 1,113            | 1,275             |
+------------------------------+------------------+-------------------+
| February                     | 1,088            | 1,243             |
+------------------------------+------------------+-------------------+
| March                        | 1,125            | 1,273             |
+------------------------------+------------------+-------------------+
| April                        | 1,148            | 1,290             |
+------------------------------+------------------+-------------------+
| May                          | 1,158            | 1,285             |
+------------------------------+------------------+-------------------+
| June                         | 1,155            | 1,283             |
+------------------------------+------------------+-------------------+
| July                         | 1,165            | 1,293             |
+------------------------------+------------------+-------------------+
| August                       | 1,185            | 1,335             |
+------------------------------+------------------+-------------------+
| September                    | 1,215            | 1,340             |
+------------------------------+------------------+-------------------+
| October                      | 1,190            | 1,308             |
+------------------------------+------------------+-------------------+
| November                     | 1,145            | 1,265             |
+------------------------------+------------------+-------------------+
| December                     | 1,143            | 1,283             |
+------------------------------+------------------+-------------------+
| January (2006)               | 1,165            | 1,318             |
+------------------------------+------------------+-------------------+
| /1 Heilongjiang, Jilin,      |                  |                   |
| Shandong, Henan              |                  |                   |
+------------------------------+------------------+-------------------+
| /2 Tianjin, Fujian, Jiangxi, |                  |                   |
| Hubei                        |                  |                   |
+------------------------------+------------------+-------------------+
| Source: China National Grain |                  |                   |
| and Oils Information Center  |                  |                   |
+------------------------------+------------------+-------------------+

###   

### Table 8. Rice Price Table

+-------------------------------+-------------------+-----------------+
| ###### China\                 |                   |                 |
| 's Average Retail Rice Prices |                   |                 |
+-------------------------------+-------------------+-----------------+
| (Renminbi Per Metric Ton, USD |                   |                 |
| 1.00 = RMB 8.27)              |                   |                 |
+-------------------------------+-------------------+-----------------+
|                               | Milled Indica     | Milled Indica   |
+-------------------------------+-------------------+-----------------+
| National Average              | Grade 1           | Grade 1         |
+-------------------------------+-------------------+-----------------+
|                               | Producing         | Consuming       |
|                               | Region/1          | Region/2        |
+-------------------------------+-------------------+-----------------+
| January (2004)                | 1,990             | 1,900           |
+-------------------------------+-------------------+-----------------+
| February                      | 2,100             | 2,060           |
+-------------------------------+-------------------+-----------------+
| March                         | 2,490             | 2,240           |
+-------------------------------+-------------------+-----------------+
| April                         | 2,450             | 2,220           |
+-------------------------------+-------------------+-----------------+
| May                           | 2,660             | 2,570           |
+-------------------------------+-------------------+-----------------+
| June                          | 2,650             | 2,540           |
+-------------------------------+-------------------+-----------------+
| July                          | 2,590             | 2,520           |
+-------------------------------+-------------------+-----------------+
| August                        | 2,480             | 2,510           |
+-------------------------------+-------------------+-----------------+
| September                     | 2,470             | 2,490           |
+-------------------------------+-------------------+-----------------+
| October                       | 2,440             | 2,460           |
+-------------------------------+-------------------+-----------------+
| November                      | 2,390             | 2,390           |
+-------------------------------+-------------------+-----------------+
| December                      | 2,380             | 2,450           |
+-------------------------------+-------------------+-----------------+
| January (2005)                | 2,380             | 2,420           |
+-------------------------------+-------------------+-----------------+
| February                      | 2,380             | 2,410           |
+-------------------------------+-------------------+-----------------+
| March                         | 2,360             | 2,430           |
+-------------------------------+-------------------+-----------------+
| April                         | 2,330             | 2,320           |
+-------------------------------+-------------------+-----------------+
| May                           | 2,310             | 2,260           |
+-------------------------------+-------------------+-----------------+
| June                          | 2,290             | 2,240           |
+-------------------------------+-------------------+-----------------+
| July                          | 2,200             | 2,130           |
+-------------------------------+-------------------+-----------------+
| August                        | 2,130             | 2,090           |
+-------------------------------+-------------------+-----------------+
| September                     | 2,160             | 2,100           |
+-------------------------------+-------------------+-----------------+
| October                       | 2,130             | 2,100           |
+-------------------------------+-------------------+-----------------+
| November                      | 2,140             | 2,090           |
+-------------------------------+-------------------+-----------------+
| December                      | 2,150             | 2,110           |
+-------------------------------+-------------------+-----------------+
| January (2006)                | 2,170             | 2,150           |
+-------------------------------+-------------------+-----------------+
| /1 Zhejiang,Anhui,Fujian      |                   |                 |
+-------------------------------+-------------------+-----------------+
| /2 Guangdong, Guangxi         |                   |                 |
+-------------------------------+-------------------+-----------------+
| Source: China National Grain  |                   |                 |
| and Oils Information Center   |                   |                 |
+-------------------------------+-------------------+-----------------+

## Trade Tables

### Table 9. Wheat Trade Table

  ----------- ----------- ----------- ----------- ----------- -----------
  **China                                                     
  Wheat                                                       
  Imports by                                                  
  Origin, MY                                                  
  2004/2005                                                   
  (1,000                                                      
  Metric                                                      
  Tons)**                                                     

  Country     Jul-Sep     Oct-Dec     Jan-Mar     April-Jun   Total

  United      930         936         193         59          2,117
  States                                                      

  Australia   505         643         577         217         1,943

  Canada      818         585         733         425         2,561

  Japan       2           3           2           3           10

  Korea,      2           3           1           2           7
  South                                                       

  Thailand    0           1           1           0           2

  Italy       1           1           1           0           2

  Nepal       1           0           0           1           2

  France      0           105         402         159         666

  Indonesia   0           0           0           0           0

  Others      1           1           1           1           3

  Grand Total 2,260       2,277       1,910       866         7,314
  ----------- ----------- ----------- ----------- ----------- -----------

  ----------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  **China Wheat Imports by Origin, MY 2005/2006 (1,000 Metric                                                       
  Tons)**                                                                                                           

  Country                                                           Jul-Sep     Oct-Dec     Jan-Mar     April-Jun   Total

  United States                                                     106         142                                 248

  Australia                                                         89          128                                 217

  Canada                                                            245         49                                  294

  Japan                                                             3           3                                   7

  Korea, South                                                      2           3                                   4

  Thailand                                                          0           1                                   1

  Italy                                                             1           1                                   1

  Nepal                                                             0           1                                   1

  France                                                            1           0                                   1

  Indonesia                                                         0           0                                   1

  Others                                                            1           1                                   2

  Grand Total                                                       450         328                                 778

  Source: China Customs                                                                                             

  HS Codes:                                                                                                         
  10011000.10019010.10019090.11010000.19021900.19023030.19023090.                                                   
  19024000                                                                                                          
  ----------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------

+----------------+---------+---------+---------+---------+---------+
| ######### CHI  |         |         |         |         |         |
| NA\'S WHEAT IM |         |         |         |         |         |
| PORTS BY MONTH |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
| (1,000 Metric  |         |         |         |         |         |
| Tons)          |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
|                | 2001    | 2002    | 2003    | 2004    | 2005    |
+----------------+---------+---------+---------+---------+---------+
| January        | 16      | 172     | 40      | 42      | 794     |
+----------------+---------+---------+---------+---------+---------+
| February       | 57      | 27      | 4       | 105     | 452     |
+----------------+---------+---------+---------+---------+---------+
| March          | 28      | 16      | 54      | 120     | 664     |
+----------------+---------+---------+---------+---------+---------+
| April          | 84      | 156     | 46      | 439     | 321     |
+----------------+---------+---------+---------+---------+---------+
| May            | 7       | 38      | 31      | 789     | 242     |
+----------------+---------+---------+---------+---------+---------+
| June           | 8       | 57      | 5       | 1,236   | 303     |
+----------------+---------+---------+---------+---------+---------+
| July           | 34      | 50      | 5       | 748     | 174     |
+----------------+---------+---------+---------+---------+---------+
| August         | 18      | 17      | 47      | 654     | 190     |
+----------------+---------+---------+---------+---------+---------+
| September      | 71      | 64      | 112     | 859     | 86      |
+----------------+---------+---------+---------+---------+---------+
| October        | 26      | 40      | 16      | 1009    | 163     |
+----------------+---------+---------+---------+---------+---------+
| November       | 201     | 17      | 34      | 640     | 93      |
+----------------+---------+---------+---------+---------+---------+
| December       | 222     | 7       | 79      | 628     | 72      |
+----------------+---------+---------+---------+---------+---------+
|                |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
| JAN-DEC TOTAL  | 772     | 661     | 473     | 7,269   | 3,555   |
+----------------+---------+---------+---------+---------+---------+
|                |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
|                | (01/02) | (02/03) | (03/04) | (04/05) | (05/06) |
+----------------+---------+---------+---------+---------+---------+
| JUL-JUN MY     | 1,038   | 375     | 3,024   | 7,314   | 1/ 778  |
| TOTAL          |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
| 1/ year to     |         |         |         |         |         |
| date           |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
| Source: China  |         |         |         |         |         |
| Customs        |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+
| HS Code:       |         |         |         |         |         |
| 100110         |         |         |         |         |         |
| 00.10019010.10 |         |         |         |         |         |
| 019090.1101000 |         |         |         |         |         |
| 0.19021900.190 |         |         |         |         |         |
| 23030.19023090 |         |         |         |         |         |
| 19024000       |         |         |         |         |         |
+----------------+---------+---------+---------+---------+---------+

  -------------- ----------- ----------- ----------- ----------- -----------
  **China Wheat                                                  
  Exports by                                                     
  Destination,                                                   
  MY 2004/2005                                                   
  (1,000 Metric                                                  
  Tons)**                                                        

  Country        Jul-Sep     Oct-Dec     Jan-Mar     April-Jun   Total

  Philippines    1           34          3           58          95

  Hong Kong      33          40          30          33          136

  Korea, North   30          24          17          34          106

  Korea, South   43          44          10          10          106

  Indonesia      17          17          21          9           63

  Thailand       5           4           5           7           20

  United Kingdom 3           4           3           2           12

  United States  1           2           2           2           7

  Japan          5           16          10          11          41

  Mongolia       3           3           9           7           22

  Others         69          65          21          28          183

  Grand Total    210         251         131         202         793
  -------------- ----------- ----------- ----------- ----------- -----------

  ----------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  **China Wheat Exports by Destination, MY 2005/2006 (1,000 Metric                                                  
  Tons)**                                                                                                           

  Country                                                           Jul-Sep     Oct-Dec     Jan-Mar     April-Jun   Total

  Philippines                                                       73          75                                  148

  Hong Kong                                                         35          35                                  70

  Korea, North                                                      40          35                                  75

  Korea, South                                                      10          12                                  22

  Indonesia                                                         14          9                                   23

  Thailand                                                          10          6                                   16

  United Kingdom                                                    3           3                                   6

  United States                                                     2           3                                   6

  Japan                                                             2           3                                   5

  Mongolia                                                          1           2                                   4

  Others                                                            27          19                                  47

  Grand Total                                                       220         202                                 422

  Source: China Customs                                                                                             

  HS Codes:                                                                                                         
  10011000,10019010,10019090,11010000,19021900,19023030,19023090,                                                   
  19024000                                                                                                          
  ----------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------

+-----------+-----------+-----------+-----------+-----------+-----------+
| #####     |           |           |           |           |           |
| #### CHIN |           |           |           |           |           |
| A\'S WHEA |           |           |           |           |           |
| T EXPORTS |           |           |           |           |           |
|  BY MONTH |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| (1,000    |           |           |           |           |           |
| Metric    |           |           |           |           |           |
| Tons)     |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | 2001      | 2002      | 2003      | 2004      | 2005      |
+-----------+-----------+-----------+-----------+-----------+-----------+
| January   | 24        | 56        | 86        | 94        | 41        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| February  | 32        | 173       | 133       | 164       | 38        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| March     | 41        | 71        | 166       | 105       | 52        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| April     | 34        | 107       | 104       | 127       | 42        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| May       | 66        | 98        | 308       | 169       | 80        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| June      | 81        | 177       | 191       | 103       | 80        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| July      | 106       | 101       | 232       | 63        | 103       |
+-----------+-----------+-----------+-----------+-----------+-----------+
| August    | 113       | 114       | 240       | 95        | 45        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| September | 135       | 87        | 291       | 52        | 72        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| October   | 57        | 120       | 422       | 106       | 40        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| November  | 115       | 41        | 195       | 83        | 47        |
+-----------+-----------+-----------+-----------+-----------+-----------+
| December  | 125       | 85        | 417       | 62        | 115       |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| JAN-DEC   | 929       | 1,230     | 2,785     | 1,223     | 755       |
| TOTAL     |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | (01/02)   | (02/03)   | (03/04)   | (04/05)   | (05/06)   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| JUL-JUN   | 1,333     | 1,536     | 2,559     | 793       | 1/ 422    |
| MY TOTAL  |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| 1/ year   |           |           |           |           |           |
| to date   |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Source:   |           |           |           |           |           |
| China     |           |           |           |           |           |
| Customs   |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| HS Code:  |           |           |           |           |           |
| 10011000. |           |           |           |           |           |
| 10019010. |           |           |           |           |           |
| 10019090. |           |           |           |           |           |
| 11010000. |           |           |           |           |           |
| 19021900. |           |           |           |           |           |
| 19023030. |           |           |           |           |           |
| 19023090. |           |           |           |           |           |
| 19024000  |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

### Table 10. Corn Trade Table

  -------------- ---------- ------------- ----------- ----------- -----------
  **China Corn                                                    
  Exports by                                                      
  Destination,                                                    
  MY 2004/2005                                                    
  (Metric                                                         
  Tons)**                                                         

  Country        Oct-Dec    Jan-Mar       April-Jun   Jun-Sept    Total

  Korea, South   255,358    1,189,721     2,009,366   1,594,976   5,049,421

  Iran           0          40,000        713,051     228,612     981,662

  Japan          74,407     151,465       253,645     185,232     664,749

  Malaysia       93,145     205,743       95,104      125,783     519,774

  Korea, North   5,523      113,750       87,863      61,055      268,191

  Vietnam        150        0             48,870      27,290      76,310

  Hong Kong      6,717      6,258         6,784       7,831       27,590

  Bangladesh     0          0             0           30          30

  Myanmar        0          0             0           0           0

  Cambodia       0          0             0           0           0

  Others         90         1,900         32          0           2,023

  Grand Total    435,389    1,708,837     3,214,715   2,230,808   7,589,749
  -------------- ---------- ------------- ----------- ----------- -----------

  ------------------- ----------- ------------- ----------- ----------- -----------
  **China Corn                                                          
  Exports by                                                            
  Destination, MY                                                       
  2005/2006 (Metric                                                     
  Tons)**                                                               

  Country             Oct-Dec     Jan-Mar       April-Jun   Jun-Sept    Total

  Korea, South        1,100,643                                         1,100,643

  Iran                45,149                                            45,149

  Japan               244,123                                           244,123

  Malaysia            50,300                                            50,300

  Korea, North        8,131                                             8,131

  Vietnam             0                                                 0

  Hong Kong           6,036                                             6,036

  Bangladesh          34                                                34

  Myanmar             0                                                 0

  Cambodia            0                                                 0

  Others              3,040                                             3,040

  Grand Total         1,457,455                                         1,457,455

  Source: China                                                         
  Customs                                                               

  HS Codes:                                                             
  10051000,10059000                                                     
  ------------------- ----------- ------------- ----------- ----------- -----------

+-----------+-----------+-----------+-----------+-----------+-----------+
| ####      |           |           |           |           |           |
| ##### CHI |           |           |           |           |           |
| NA\'S COR |           |           |           |           |           |
| N EXPORTS |           |           |           |           |           |
|  BY MONTH |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| (Metric   |           |           |           |           |           |
| Tons)     |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | 2001      | 2002      | 2003      | 2004      | 2005      |
+-----------+-----------+-----------+-----------+-----------+-----------+
| January   | 607,625   | 229,842   | 570,290   | 574,731   | 485,419   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| February  | 745,158   | 770,204   | 1,765,212 | 443,422   | 119,673   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| March     | 938,043   | 1,100,590 | 1,596,104 | 16,068    | 1,103,745 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| April     | 251,214   | 855,122   | 551,026   | 72,177    | 529,075   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| May       | 469,940   | 271,409   | 392,106   | 358,111   | 765,548   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| June      | 124,939   | 257,892   | 1,818,844 | 165,090   | 1,920,091 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| July      | 505,799   | 1,034,190 | 1,446,253 | 157,186   | 1,092,704 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| August    | 345,695   | 1,652,001 | 1,182,624 | 55,373    | 594,601   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| September | 547,941   | 977,675   | 1,396,462 | 40,614    | 543,503   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| October   | 327,458   | 1,268,340 | 1,531,617 | 48,572    | 400,797   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| November  | 471,514   | 1,349,379 | 858,522   | 43,284    | 467,947   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| December  | 662,658   | 1,906,864 | 3,280,392 | 343,533   | 588,711   |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| JAN-DEC   | 5,997,984 | 1         | 1         | 2,318,161 | 8,611,815 |
| TOTAL     |           | 1,673,508 | 6,389,452 |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | (01/02)   | (02/03)   | (03/04)   | (04/05)   | (05/06)   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| OCT-SEP   | 8,610,555 | 1         | 7,553,303 | 7,589,748 | 1/        |
| MY TOTAL  |           | 5,243,504 |           |           | 1,457,455 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| 1/ year   |           |           |           |           |           |
| to date   |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| HS Code:  |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 005.1000, |           |           |           |           |           |
| 1005.9000 |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Source:   |           |           |           |           |           |
| China     |           |           |           |           |           |
| Customs   |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

  ------------- ----------- ----------- ----------- ----------- -----------
  **China Corn                                                  
  Imports by                                                    
  Origin, MY                                                    
  2004/2005                                                     
  (Metric                                                       
  Tons)**                                                       

  Country       Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Laos          0           0           0           0           0

  Vietnam       120         0           0           619         739

  United States 121         85          183         144         533

  Myanmar       0           130         0           68          198

  Peru          0           0           0           34          34

  France        0           0           3           0           3

  Chile         0           0           1           0           1

  Philippines   0           0           0           0           0

  Japan         0           0           0           0           0

  Pakistan      0           0           0           0           0

  Others        4           56          5           7           72

  Grand Total   245         272         191         873         1,581
  ------------- ----------- ----------- ----------- ----------- -----------

  ------------------- ----------- ----------- ----------- ----------- -----------
  **China Corn                                                        
  Imports by Origin,                                                  
  MY 2005/2006                                                        
  (Metric Tons)**                                                     

  Country             Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Laos                1,890                                           1,890

  Vietnam             332                                             332

  United States       277                                             277

  Myanmar             100                                             100

  Peru                34                                              34

  France              5                                               5

  Chile               0                                               0

  Philippines         0                                               0

  Japan               0                                               0

  Pakistan            0                                               0

  Others              0                                               0

  Grand Total         2,639                                           2,639

  Source: China                                                       
  Customs                                                             

  HS Codes:                                                           
  10051000,10059000                                                   
  ------------------- ----------- ----------- ----------- ----------- -----------

  ------------ ---------- ---------- ---------- ---------- ---------- ----------
  **CHINA\'S                                                          
  CORN IMPORTS                                                        
  BY MONTH**                                                          

  (Metric                                                             
  Tons)                                                               

               2000       2001       2002       2003       2004       2005

  January      0          18         2,449      4          34         20

  February     43         271        378        3          3          113

  March        42         901        3,237      7          89         138

  April        14         8,938      42         11         3          154

  May          2          2,215      23         2          41         37

  June         63         2,301      6          1          104        0

  July         79         716        2                     44         69

  August       3          7,384      55         4          683        321

  September    80         7,156      75         14         1,062      483

  October      0          312        21         0          141        339

  November     60         4,328      19         54         0          217

  December     0          1,569      15         20         104        2,083

                                                                      

  JAN-DEC      386        36,109     6,322      120        2,308      3,975
  TOTAL                                                               

                                                                      

               (00/01)    (01/02)    (02/03)    (03/04)    (04/05)    (05/06)

  OCT-SEP MY   29,960     12,476     101        2,137      1,581      1/ 2,639
  TOTAL                                                               

  1/ year to                                                          
  date                                                                

  HS Code:                                                            
  1005.1000,                                                          
  1005.9000                                                           

  Source:                                                             
  China                                                               
  Customs                                                             
  ------------ ---------- ---------- ---------- ---------- ---------- ----------

### Table 11. Rice Trade Table

  ------------------ ---------- ----------- ------------ ---------- -----------
  **China Rice                                                      
  Exports by                                                        
  Destination MY                                                    
  2004/2005(Metric                                                  
  Tons)**                                                           

  Country            Jan-Mar    April-Jun   Jun-Sept     Sep-Dec    Total

  Russia             42,906     29,276      32,089       14,934     119,205

  Nigeria            0          4,000       28,769       40,854     73,623

  Japan              31,954     33,050      22,162       11,801     98,966

  Cote d\'lvoire     0          21,551      19,004       3,033      43,588

  Korea, North       17,427     11,016      13,388       5,782      47,613

  Ukraine            598        2,942       5,074        0          8,615

  Hong Kong          2,199      3,944       4,773        4,583      15,499

  Lebanon            120        480         929          60         1,589

  Djibouti           0          0           580          0          580

  Bangladesh         1          0           566          1,328      1,895

  Others             106,137    94,430      3,150        56,913     260,630

  Grand Total        201,341    200,690     130,484      139,288    671,804
  ------------------ ---------- ----------- ------------ ---------- -----------

  -------------------------------------------------------- ----------- ----------- ------------ ----------- -----------
  **China Rice Imports by Origin MY 2004/2005 (Metric                                                       
  Tons)**                                                                                                   

  Country                                                  Jan-Mar     April-Jun   Jun-Sept     Sep-Dec     Total

  Thailand                                                 114,232     83,458      90,924       182,926     471,540

  Vietnam                                                  17,025      6,885       8,717        8,906       41,534

  Cambodia                                                 0           0           1            0           1

  United States                                            44          0           0            4           48

  Italy                                                    0           0           0            0           0

  Uruguay                                                  0           0           0            0           0

  Canada                                                   0           0           0            0           0

  Australia                                                0           0           0            0           0

  Korea, South                                             0           0           0            0           0

  Others                                                   32          0           0            811         843

  Grand Total                                              131,333     90,344      99,642       192,647     513,966

  Source: China Customs                                                                                     

  HS Codes:                                                                                                 
  10061011,10061019,10061091,10061099,10062010,10062090.                                                    

  10063010,10063090,10064010,10064090                                                                       
  -------------------------------------------------------- ----------- ----------- ------------ ----------- -----------

+-----------+-----------+-----------+-----------+-----------+----------+
| ####      |           |           |           |           |          |
| ##### CHI |           |           |           |           |          |
| NA\'S RIC |           |           |           |           |          |
| E EXPORTS |           |           |           |           |          |
|  BY MONTH |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+
| (Metric   |           |           |           |           |          |
| Tons,     |           |           |           |           |          |
| Milled    |           |           |           |           |          |
| Basis)    |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+
|           | 2001      | 2002      | 2003      | 2004      | 2005     |
+-----------+-----------+-----------+-----------+-----------+----------+
| January   | 118,568   | 113,566   | 131,654   | 211,346   | 73,325   |
+-----------+-----------+-----------+-----------+-----------+----------+
| February  | 118,544   | 128,683   | 308,722   | 258,362   | 92,508   |
+-----------+-----------+-----------+-----------+-----------+----------+
| March     | 130,057   | 112,122   | 124,402   | 231,601   | 35,508   |
+-----------+-----------+-----------+-----------+-----------+----------+
| April     | 225,259   | 85,502    | 129,579   | 23,229    | 36,104   |
+-----------+-----------+-----------+-----------+-----------+----------+
| May       | 115,528   | 62,387    | 135,023   | 4,522     | 80,091   |
+-----------+-----------+-----------+-----------+-----------+----------+
| June      | 199,023   | 153,893   | 314,393   | 10,127    | 84,496   |
+-----------+-----------+-----------+-----------+-----------+----------+
| July      | 176,445   | 121,934   | 248,894   | 16,483    | 59,461   |
+-----------+-----------+-----------+-----------+-----------+----------+
| August    | 111,027   | 242,846   | 233,489   | 6,597     | 41,595   |
+-----------+-----------+-----------+-----------+-----------+----------+
| September | 138,345   | 290,741   | 254,628   | 14,844    | 29,428   |
+-----------+-----------+-----------+-----------+-----------+----------+
| October   | 114,068   | 203,786   | 201,805   | 22,781    | 28,138   |
+-----------+-----------+-----------+-----------+-----------+----------+
| November  | 150,179   | 135,495   | 294,212   | 25,890    | 45,042   |
+-----------+-----------+-----------+-----------+-----------+----------+
| December  | 265,454   | 332,127   | 233,397   | 70,235    | 66,109   |
+-----------+-----------+-----------+-----------+-----------+----------+
|           |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+
| TOTAL     | 1,862,497 | 1,983,082 | 2,610,198 | 896,017   | 671,804  |
+-----------+-----------+-----------+-----------+-----------+----------+
| HS Codes: |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.1011, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.1019, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.1091, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.1099, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.2010, |           |           |           |           |          |
| 1006.2090 |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+
| 1         |           |           |           |           |          |
| 006.3010, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.3090, |           |           |           |           |          |
| 1         |           |           |           |           |          |
| 006.4010, |           |           |           |           |          |
| 1006.4090 |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+
| Source:   |           |           |           |           |          |
| China     |           |           |           |           |          |
| Customs   |           |           |           |           |          |
+-----------+-----------+-----------+-----------+-----------+----------+

+-----------+-----------+-----------+-----------+-----------+-----------+
| ####      |           |           |           |           |           |
| ##### CHI |           |           |           |           |           |
| NA\'S RIC |           |           |           |           |           |
| E IMPORTS |           |           |           |           |           |
|  BY MONTH |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| (Metric   |           |           |           |           |           |
| Tons,     |           |           |           |           |           |
| Milled    |           |           |           |           |           |
| Basis)    |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | 2001      | 2002      | 2003      | 2004      | 2005      |
+-----------+-----------+-----------+-----------+-----------+-----------+
| January   | 45,834    | 14,139    | 98,410    | 73,217    | 68,586    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| February  | 19,676    | 520       | 16,494    | 42,906    | 24,147    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| March     | 18,482    | 5,311     | 21,073    | 39,703    | 38,600    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| April     | 11,452    | 6,100     | 24,334    | 90,010    | 43,443    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| May       | 6,360     | 37,890    | 9,134     | 64,139    | 20,078    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| June      | 10,658    | 38,864    | 8,298     | 65,197    | 28,007    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| July      | 14,645    | 28,455    | 4,140     | 77,082    | 26,822    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| August    | 17,517    | 10,420    | 9,304     | 32,884    | 31,411    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| September | 23,579    | 19,040    | 2,420     | 62,978    | 40,224    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| October   | 17,323    | 4,575     | 1,564     | 67,399    | 38,483    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| November  | 23,970    | 16,389    | 5,608     | 55,694    | 50,584    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| December  | 75,795    | 56,165    | 57,791    | 90,501    | 103,581   |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| TOTAL     | 285,290   | 237,868   | 258,570   | 761,710   | 513,966   |
+-----------+-----------+-----------+-----------+-----------+-----------+
| HS Codes: |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.1011, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.1019, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.1091, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.1099, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.2010, |           |           |           |           |           |
| 1006.2090 |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| 1         |           |           |           |           |           |
| 006.3010, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.3090, |           |           |           |           |           |
| 1         |           |           |           |           |           |
| 006.4010, |           |           |           |           |           |
| 1006.4090 |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Source:   |           |           |           |           |           |
| China     |           |           |           |           |           |
| Customs   |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

### Table 12. Barley Trade Table

  ------------- ---------- ---------- ----------- ----------- -------------
  **China                                                     
  Barley                                                      
  Imports by                                                  
  Origin, MY                                                  
  2004/2005                                                   
  (Metric                                                     
  Tons)**                                                     

  Country       Oct-Dec    Jan-Mar    April-Jun   Jun-Sept    Total

  Australia     247,097    404,568    427,085     173,235     1,251,984

  Canada        62,795     206,458    274,899     79,293      623,445

  France        0          5,039      39,058      111,761     155,858

  Netherlands   0          0          0           1,011       1,011

  Spain         0          0          0           0           0

  Finland       0          0          0           0           0

  Mexico        0          0          0           0           0

  United States 0          0          0           0           0

  New Zealand   0          0          0           0           0

  Japan         0          0          0           16,500      16,500

  Others        0          0          0           0           0

  Grand Total   309,891    616,064    741,042     381,800     2,048,798
  ------------- ---------- ---------- ----------- ----------- -------------

  ------------------- ---------- ---------- ----------- ----------- -------------
  **China Barley                                                    
  Imports by Origin,                                                
  MY 2005/2006                                                      
  (Metric Tons)**                                                   

  Country             Oct-Dec    Jan-Mar    April-Jun   Jun-Sept    Total

  Australia           155,088                                       155,088

  Canada              144,242                                       144,242

  Netherlands         140,976                                       140,976

  Spain               0                                             0

  Finland             0                                             0

  Mexico              0                                             0

  United States       0                                             0

  New Zealand         0                                             0

  Lebanon             0                                             0

  China               0                                             0

  Others              0                                             0

  Grand Total         440,305                                       440,305

  Source: China                                                     
  Customs                                                           

  HS Codes:                                                         
  10030010,10030090                                                 
  ------------------- ---------- ---------- ----------- ----------- -------------

  -------------- ----------- ----------- ----------- ----------- -----------
  **China Barley                                                 
  Exports by                                                     
  Destination,                                                   
  MY 2004/2005                                                   
  (Metric                                                        
  Tons)**                                                        

  Country        Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Korea, South   330         0           880         770         1,979

  United States  8           6           9           9           32

  Thailand       0           0           0           0           0

  Vietnam        0           0           0           0           0

  Taiwan         0           0           0           0           0

  Russia         0           0           0           0           0

  Canada         0           0           0           0           0

  Korea, North   270         295         50          38          653

  Hong Kong      0           0           0           0           0

  Japan          0           0           0           0           0

  Others         0           0           2           0           2

  Grand Total    608         301         941         816         2,665
  -------------- ----------- ----------- ----------- ----------- -----------

  ------------------- ----------- ----------- ----------- ----------- -----------
  **China Barley                                                      
  Exports by                                                          
  Destination, MY                                                     
  2005/2006 (Metric                                                   
  Tons)**                                                             

  Country             Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Korea, South        1,062                                           1,062

  United States       0                                               0

  Thailand            0                                               0

  Vietnam             0                                               0

  Taiwan              0                                               0

  Russia              0                                               0

  Canada              0                                               0

  Korea, North        0                                               0

  Hong Kong           0                                               0

  Japan               0                                               0

  Others              0                                               0

  Grand Total         1,063                                           1,063

  Source: China                                                       
  Customs                                                             

  HS Codes:                                                           
  10030010,10030090                                                   
  ------------------- ----------- ----------- ----------- ----------- -----------

### Table 13. Sorghum Trade Table

  ------------------ ----------- ----------- ----------- ----------- -----------
  **China Sorghum                                                    
  Imports by Origin,                                                 
  MY                                                                 
  2004/2005(Metric                                                   
  Tons)**                                                            

  Country            Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Myanmar            2,412       3,321       2,008       1,595       9,335

  India              0           0           0           0           0

  Japan              0           0           0           0           0

  Philippines        0           0           0           0           0

  Korea, South       0           0           0           0           0

  South Africa       0           0           0           0           0

  Argentina          0           0           0           0           0

  Brazil             0           0           0           0           0

  Mexico             0           0           0           0           0

  Uruguay            0           0           0           0           0

  Others             0           0           0           44          44

  Grand Total        2,412       3,321       2,008       1,639       9,379
  ------------------ ----------- ----------- ----------- ----------- -----------

  ------------------- ----------- ----------- ----------- ----------- -----------
  **China Sorghum                                                     
  Imports by Origin,                                                  
  MY 2005/2006(Metric                                                 
  Tons)**                                                             

  Country             Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Myanmar             2,054                                           2,054

  India               0                                               0

  Japan               0                                               0

  Philippines         0                                               0

  Korea, South        0                                               0

  South Africa        0                                               0

  Argentina           0                                               0

  Brazil              0                                               0

  Mexico              0                                               0

  Uruguay             0                                               0

  Others              0                                               0

  Grand Total         2,054                                           2,054

  Source: China                                                       
  Customs                                                             

  HS Codes:                                                           
  10070010,10070090                                                   
  ------------------- ----------- ----------- ----------- ----------- -----------

  ------------------ ----------- ----------- ----------- ----------- -----------
  **China Sorghum                                                    
  Export by                                                          
  Destination, MY                                                    
  2004/2005(Metric                                                   
  Tons)**                                                            

  Country            Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Taiwan             2,296       1,999       5,041       5,715       15,051

  Korea, South       2,829       1,304       1,060       300         5,493

  Japan              6,524       44          163         46          6,778

  Singapore          0           0           0           22          22

  Malaysia           0           27          31          31          89

  Germany            0           0           2           3           5

  Spain              0           19          0           0           19

  Netherlands        0           0           0           0           0

  Greece             0           0           0           0           0

  Portugal           0           0           0           0           0

  Others             0           0           0           0           0

  Grand Total        11,786      3,541       6,302       6,135       27,763
  ------------------ ----------- ----------- ----------- ----------- -----------

  ------------------- ----------- ----------- ----------- ----------- -----------
  **China Sorghum                                                     
  Export by                                                           
  Destination, MY                                                     
  2005/2006(Metric                                                    
  Tons)**                                                             

  Country             Oct-Dec     Jan-Mar     April-Jun   Jun-Sept    Total

  Japan               6,457                                           6,457

  Korea, South        1,528                                           1,528

  Taiwan              92                                              92

  Korea, North        42                                              42

  Bulgaria            30                                              30

  United States       2                                               2

  Zambia              1                                               1

  Nigeria             0                                               0

  South Africa        0                                               0

  Zimbabwe            0                                               0

  Others              0                                               0

  Grand Total         8,152                                           8,152

  Source: China                                                       
  Customs                                                             

  HS Codes:                                                           
  10070010,10070090                                                   
  ------------------- ----------- ----------- ----------- ----------- -----------