Required Report - public distribution

**Date:** 3/1/2007

**GAIN Report Number:** CH7015

CH7015

**China, Peoples Republic of**

**Grain and Feed**

**Annual**

**2007**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Kevin Latner and Junyang Jiang

**Report Highlights:**

China's total grains output rose in MY06/07 over the previous year as a
result favorable weather and increased acreage. Increased acreage was in
response to higher market prices supported by government programs. Corn
production in MY07/08 is forecast at 143 million metric tons (MMT) and
corn imports in MY07/08 are forecast at 800,000 MT, driven by growth in
the livestock sector and expanded industrial use. Wheat production in
MY06/07 is estimated to be 103 MMT, up 6 percent, and rice production
for MY06/07 is estimated at 181 MMT, up slightly from the previous year.
In MY06/07 and MY07/08 China is estimated to be a net wheat and rice
exporter, due to three straight years' increase in grain production and
declining consumption.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Beijing \[CH1\]

\[CH\]

Table of Contents

[Executive Summary 4](#executive-summary)

[Grain Production, Consumption and Trade
4](#grain-production-consumption-and-trade)

[Grain Area and Yield 4](#grain-area-and-yield)

[Corn 5](#corn)

[Production 5](#production)

[Consumption 6](#consumption)

[Corn Trade 7](#corn-trade)

[Stocks 8](#stocks)

[DDGS 8](#ddgs)

[Market Opportunities 9](#market-opportunities)

[Wheat 9](#wheat)

[Production 9](#production-1)

[Consumption 9](#consumption-1)

[Trade 10](#trade)

[Stocks 10](#stocks-1)

[Rice 10](#rice)

[Production 10](#production-2)

[Consumption 10](#consumption-2)

[Trade 11](#trade-1)

[Stocks 11](#stocks-2)

[Barley 11](#barley)

[Sorghum 12](#sorghum)

[Ethanol 12](#ethanol)

[Fuel Ethanol 12](#fuel-ethanol)

[Ethanol Exports 13](#ethanol-exports)

[Policy 13](#policy)

[Grain Prices and Farmer Income 14](#grain-prices-and-farmer-income)

[Grain Support Programs 14](#grain-support-programs)

[Direct Payments 15](#direct-payments)

[Seed Subsidy 15](#seed-subsidy)

[Price Support Programs 15](#price-support-programs)

[Subsidy on Farm Machinery 16](#subsidy-on-farm-machinery)

[Comprehensive Subsidy on Fuel and Fertilizer
16](#comprehensive-subsidy-on-fuel-and-fertilizer)

[Elimination of Agricultural Tax 17](#elimination-of-agricultural-tax)

[Tariff Rate Quotas 17](#tariff-rate-quotas)

[VAT Exemptions: Hidden Protections
17](#vat-exemptions-hidden-protections)

[Statistical Tables 18](#statistical-tables)

[PSD tables 18](#psd-tables)

[Table 1. Corn PSD Table 18](#table-1.-corn-psd-table)

[Table 2. Wheat PSD Table 19](#table-2.-wheat-psd-table)

[Table 3. Rice PSD Table 19](#table-3.-rice-psd-table)

[Table 4. Barley PSD Table 20](#table-4.-barley-psd-table)

[Table 5. Sorghum PSD Table 20](#table-5.-sorghum-psd-table)

[Price Tables 21](#price-tables)

[Table 6. Corn Price Table 21](#table-6.-corn-price-table)

[Table 7. Wheat Price Table 22](#table-7.-wheat-price-table)

[Table 8. Rice Price Table 23](#table-8.-rice-price-table)

[Trade Tables 24](#trade-tables)

[Table 9. Corn Trade Table 24](#table-9.-corn-trade-table)

[Table 10. Wheat Trade Table 27](#table-10.-wheat-trade-table)

[Table 11. Rice Trade Table 30](#table-11.-rice-trade-table)

[Table 12. Barley Trade Table 32](#table-12.-barley-trade-table)

[Table 13. Sorghum Trade Table 34](#table-13.-sorghum-trade-table)

#  Executive Summary

China\'s total grains output increased in MY06/07 over the previous year
as a result of strong market demand, government incentives to increase
acreage and improve yield, and good weather. Since China's short supply
and imports of 10 million metric tons (MMT) wheat in 2003, the Chinese
government has encouraged grain production through a series of policies,
including direct payments, price supports, export incentives, and tax
breaks.

China will continue to implement national objectives to increase farm
income, insure adequate calories for their population, and, as an
extension, maintain self-sufficiency in rice, wheat and corn. The
current government support programs are expected to continue or expand
to meet farm income objectives, but this may collide with declining food
grain demand, even while feed grain and industrial use for corn grows.

Corn production for MY06/07 is estimated at 142 million metric tons
(MMT), up 5 percent from the previous year. Corn production in MY07/08
is forecast at 143 MMT and, assuming world corn decline, China is
forecast to import 800,000 MT in MY07/08, driven by growth in the
livestock sector and expanded industrial use. Wheat production in
MY06/07 is estimated to be 103 MMT, up 6 percent, and rice output for
MY06/07 is estimated at 181 MMT, up slightly from the previous year. Due
to three straight years' of increased food grain output, in MY06/07,
China is estimated to be a net exporter for wheat and rice.

This year Post has incorporated better intelligence into earlier
analysis of corn production and consumption. This will lead to better
year-on-year production estimates and some adjustments as a result of
previously unreported production and production areas.

# ![](media/image2.wmf){width="4.327165354330709in" height="2.322834645669291in"}Grain Production, Consumption and Trade

While China began liberalizing production and distribution of grains and
oilseeds in 1997, China has retained its long-term self-sufficiency
objective for food grains, and defined food grains to include rice,
wheat and corn. The growing demand for corn by livestock and industrial
users has led to discussions in Chinese think tanks that China's
self-sufficiency objective should be limited to rice and wheat.
Meanwhile, declining demand for wheat and rice combined with production
support policies have increased stocks. Post predicts that it will take
at least two to four years to realign production practices with
increased domestic demand for corn and decreased domestic demand for
wheat and rice.

## 

## Grain Area and Yield 

Since China's short supply and imports of 10 MMT wheat in 2003, the
Chinese government has implemented a series of policies to protect the
arable land and encourage grain (defined as cereals, beans and tubers)
production. Under the 11^th^ (2006-2010) five year plan the objective is
for annual sown area of grains to be at least 100 million hectares (Ha)
and to increase average grain yield[^1] one percent annually. Meeting
this 100 million Ha objective includes double cropping rice in southern
China and intercropping winter wheat with corn in northern China. In the
past five years, rice, corn and wheat sown area averaged 78% of total
sown area of grains.

## Corn 

This year Post has incorporated better intelligence into earlier
analysis of corn production and consumption. This will lead to better
year-on-year production estimates and some adjustments as a result
previously unreported production and production areas.

Prior to 2004, agricultural land taxes collected by the provincial
government were passed on to the central government for redistribution
in support of central government policies. In varying degrees, depending
on the province (and commodity), provincial governments would hide land
(locally known as \"black land\") and hence some tax receipts, and feed
them into provincial coffers. Beginning in 2004 and implemented over a
3-year period, this agricultural tax, and the incentive to hide
production and production acreage, has been eliminated. Additional tax
reforms now provide incentives to declare agricultural land to receive
production support (see Policy section).

The Heilongjiang province reputedly had the greatest amount of "black
land' in China. When the agricultural tax was removed in 2005 in
Heilongjiang, according to the provincial statistical data, corn acreage
and production jumped 27% and 31% (MY05/06) respectively over the
previous year. Post estimates that production in Heilongjiang in MY05/06
was up about 8 percent, over the previous year, suggesting that these
production increases are mostly composed of the inclusion of black land.

This example reflects a historical tension between the central and
provincial governments. This tension continues to influence provincial
reactions to central government policies. For example, provincial
governments seek to maximize central government incentives by
underreporting grain acreage and production volumes in grain surplus
years and over-reporting in short years.

Post believes that recent reporting of previously unreported black land
production has masked recent increases in production and consumption
numbers and that in the years prior to MY04/05, China's corn production
and consumption are understated.

### Production

Corn production for MY06/07 is estimated at 142 MMT, up 5 percent from
previous year. Favorable weather and increased acreage contributed to
the high yield. Corn acreage in MY06/07 is estimated at 27 million Ha.
Corn production in MY07/08 is forecast at 143 MMT, 1 MMT higher than the
previous year. Yields are forecast to be higher than average but lower
than the previous year. Corn area for MY07/08 is forecast to up slightly
over the previous year as farmers shift to corn in response to higher
corn prices.

Post analysis concludes that MY05/06 crop was down slightly from the
previous year and has adjusted post\'s previous estimate up 1 MMT to 135
MMT. Post does not accept Chinese official reporting of 139.3 MMT.
According to the official report, this record production increase was
the result of a 2.5 percent increase in yield, favorable weather
conditions and increased acreage. Based on Post intelligence, Post
concludes that actual production was down from the previous year and the
increased production number reflects an adjustment based on reporting of
previously unreported acreage (black land).

###  

### Consumption 

Corn is used in China as feed, for industrial production of sugar,
starch and biofuel, and for food, accounting for 72, 20, and less than
one percent of domestic use, respectively. The rest is seed and losses.
Historically, exports have provided a relief valve for excess
production.

#### Feed consumption

Post estimates the feed corn consumption increases at 3.5 percent in
both MY06/07 and MY07/08. This increase closely tracks increases in
meat, especially pork and poultry, production, taking into account
increased efficiencies in feed and feed substitution as corn price
increases close the gap between corn and (imperfect) substitutes like
rice and wheat.

China's meat production has averaged a growth rate of 4.8 percent
annually during the last five years. Post concurs with an estimates by
the National Statistical Bureau that despite swine fever and bird flu,
meat production is up 4.5 percent to 80 MMT and poultry egg production
is up 3.0 percent to 29.50 MMT in 2006. (See GAIN CH7014.)

Post estimates that efficiencies from better feed mixes have meant that
feed corn use has been slightly below meat production increases.
According to an annual survey on household and commercial farms by
National Development and Reform Commission (NDRC), the overall use of
grains and other crude protein ingredients in feed per unit of meat
production has been down an average of almost one percent per year over
the past ten years as a result of improved feed formulation and
additives. Post forecasts this trend will continue.

In MY06/07, responding to price increases in corn, some poultry and
swine farms in northern and central China have substituted wheat and
early season rice into their feed mix, slightly reducing the growth rate
for feed corn use. While mostly limited to provinces with an oversupply
of lower-quality wheat and rice, the trend is likely to continue.

There is no national tracking for the use of feed corn. The Ministry of
Agriculture\'s (MoA) China Industry Feed Association tracks industrial
feed, estimated up 3 percent in CY2006 to 110 MMT. Post believes the
unusually low growth rate, reportedly attributed to swine fever and
avian influenza, is overstated. Corn content is estimated between 55 and
65 percent of industrial compound feed. Industrial feed is estimated at
between 50 and 65 percent of total feed use.

  ------------ --------- --------------- ---- --------------- ---- --------------- ----------------
  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                   107,000              77,610               24,980          4,780

  2006         110,000                   NA                   NA                   NA

  Source:                                                                          
  China Feed                                                                       
  Industry                                                                         
  Office                                                                           
  ------------ --------- --------------- ---- --------------- ---- --------------- ----------------

Industrial and feed corn is principally used for poultry and pork
production. Pork and poultry production facilities fall into three
categories: industrial farms, making up approximately 20-30 percent of
pork production and 60-70 percent of poultry production; large farms,
making up as much as 20 percent of pork production; and backyard farms,
accounting for the rest of production. Industrial production mostly
relies on compound feed, and by some accounts, pork and poultry output
by commercial (industrial and large) farms accounted for half of China's
total production in MY06/07. Generally, the smaller the farm, feed is
increasingly concentrate or premix combined with raw feed.

#### Industrial Use

Industrial use of corn includes the production of starch sweetener,
industrial and food starch and ethanol; Post estimates that corn
consumption for all industrial uses totaled 30 MMT in MY06/07, up by
about 5 MMT from the previous year. China's starch and ethanol sectors
have grown more than 15 percent annually over the last five years. See
separate Ethanol section.

While corn is currently the principal ingredient for these sectors,
actual corn use depends on the relative costs of corn substitutes,
including wheat, rice, sweet potatoes and cassava. In response to the
Chinese government\'s concerns about a supply shortage of corn, China
has included tariff elimination on dry cassava chips in recent free
trade agreements with Thailand and other ASEAN countries. As a result of
implementation in 2006, imports are up 48 percent from the previous
year. Industry estimates are that the imported dry cassava chips used in
the starch and ethanol sectors was equivalent to more than 4.5 MMT of
corn in CY2006.

+----------+---------+--------+--------+--------+--------+----------+
| ######   |         |        |        |        |        |          |
| China\'s |         |        |        |        |        |          |
|  Cassava |         |        |        |        |        |          |
|  (071410 |         |        |        |        |        |          |
| ) Import |         |        |        |        |        |          |
| s from t |         |        |        |        |        |          |
| he World |         |        |        |        |        |          |
|  by Metr |         |        |        |        |        |          |
| ic Ton 2 |         |        |        |        |        |          |
| 000-2006 |         |        |        |        |        |          |
+----------+---------+--------+--------+--------+--------+----------+
|          | 2001    | 2002   | 2003   | 2004   | 2005   | 2006     |
+----------+---------+--------+--------+--------+--------+----------+
| **Total  | **1,95  | *      | *      | *      | *      | **4,9    |
| I        | 0,043** | *1,760 | *2,368 | *3,442 | *3,335 | 50,435** |
| mports** |         | ,294** | ,260** | ,412** | ,415** |          |
+----------+---------+--------+--------+--------+--------+----------+
| Thailand | 1,      | 1,4    | 1,8    | 2,7    | 2,6    | 3        |
|          | 629,870 | 25,371 | 74,362 | 34,389 | 95,576 | ,864,203 |
+----------+---------+--------+--------+--------+--------+----------+
| Vietnam  | 156,996 | 2      | 4      | 5      | 4      | 941,274  |
|          |         | 12,878 | 53,132 | 22,296 | 11,573 |          |
+----------+---------+--------+--------+--------+--------+----------+
| I        | 163,155 | 1      | 40,766 | 1      | 2      | 144,784  |
| ndonesia |         | 22,040 |        | 85,728 | 28,265 |          |
+----------+---------+--------+--------+--------+--------+----------+

##### Starch Production 

The total corn used for starch manufacturing reached about 18 MMT in
MY06/07, up 15 percent from the previous year. Approximately 50 percent
of cornstarch production is used for sweetener and the rest is used in
the industrial and food processing sectors including papermaking,
textile production, and food-grade starch, including monosodium
glutamate. Cornstarch accounts for 85 percent of total Chinese starch
production.

### Corn Trade

Imports of corn are estimated at 100,000 metric tons (MT) in MY06/07.
Assuming a good U.S. harvest and soften in late summer, in MY07/08 Post
forecasts 800,000 MT of imports driven by increased feed consumption
from the meat and poultry sectors and increased demand from industrial
sectors. Corn exports during October-December 2006 were 800,000 MT. Corn
exports for MY06/07 are estimated at 4 MMT. Corn exports for MY07/08 are
forecast at 1 MMT.

#### Imports

In the summer of 2006, domestic Chinese prices for corn climbed and
prices in corn deficient areas exceeded international prices. In
response, domestic feed milers and starch sweetener manufacturers
imported corn from the U.S. for the first time in ten years. The short
supply and price differentials between traditional corn surplus regions
in northeast China and corn deficit regions in the north and south, led
feed millers in the south and sweetener manufacturers in the north to
import U.S. corn by cargo and container. U.S. corn was only competitive
in north China because it was processed and re-exported hence eligible
for a (13 percent) value added tax (VAT) rebate. Even after harvest,
Chinese domestic corn prices remained high, but high international
prices precluded subsequent imports into China. In January 2007, the
landed price of U.S. corn in Guangzhou (southern China) was about RMB
500/ton (\$65/ton) higher than the price of local corn.

#### Exports

Corn exports during October-December 2006 were 800,000 MT. Corn exports
for MY06/07 are estimated at 4 MMT. Corn exports for MY07/08 are
forecast at 1 MMT. Rising domestic corn demand for feed and industrial
use and the limited ability to expand production will limit future
exports. China's corn exports mostly go to South Korea, Japan and
Southeast Asia countries.

The Chinese government manages corn exports. The NDRC, the State
Administration of Grain (SAG), the Ministry of Finance and the
Agricultural Development Bank jointly determine the export quota based
on the supply and demand situation. In October 2006, the government
issued 4.5 MMT of corn export quota, valid through February 2007. An
estimated 4.0 MMT has been contracted under this export quota. Post
forecasts that under the current short supply situation the Chinese
government will not issue additional quota for corn exports in CY2007.

Corn export in MY06/07 were eligible for a 13 percent value added tax
(VAT) rebate worth \$17 per MT. The rebate is based not on the export
price, but on a base price. The actual export price has historically
exceeded the base 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
rebate in MY06/07 is unchanged from the previous year.

# 

### Stocks

While stock levels are considered a national secret by the Chinese
government, Post estimates ending stocks for MY06/07 are 29.5 MMT and
forecasts ending stocks for MY07/08 are 22.9 MMT as domestic consumption
outpaces production. Previously, the National Statistical Bureau (NSB)
surveyed the stock levels of government entities, but survey data was
not public and is incomplete, at best.

Most corn stocks are held in the northern production provinces of
Heilongjiang, Jilin and Inner Mongolia. Central or provincial
governments pay the storage costs, estimated at an approximate annual
cost of RMB 100 (US12.8) per ton. Because of the cost of transportation
to bring the corn down to users in the south, these provinces have
successfully lobbied the central government to provide export support
(see VAT rebate discussion in the Export section above) and
transportation subsidies. Grains transported by rail are exempt from a
RMB 0.033 per ton per kilometer \"construction fee\" charged to other
products transported domestically.

### DDGS

Domestic distillers dried grains with solubles (DDGS) production is an
outgrowth of China\'s ethanol production and is mostly consumed by
swine, and dairy cattle or incorporated into feed production. Post
estimates China\'s production of corn based DDGS is 2.4 MMT in MY06/07.
Though lower in protein content than protein meals, DDGS is a substitute
for soybean and other oilseed meal and is substituted when it is the low
cost alternative. Except around corn ethanol plants, most feed millers,
livestock and poultry farms are not familiar with the use of DDGS. The
limited availability of DDGS and varying quality (depending on the price
and availability feedstock) made it difficult for feed millers to
incorporate into their feed production, however.

#### Regulatory Oversight

While the domestic ethanol industry and feed mill sources report that
domestic production and sale of DDGS are basically unregulated, imports
must have a feed import registration and a biotech safety certificate.

The State Council\'s 2001 Management Regulation on Feed and Feed
Additive requires DDGS, as a feed product, to be registered with
Ministry of Agriculture (MoA). (See GAIN CH6083 on Feed Registration.)
MoA approved its first feed import registration for DDGS in May 2006.
While MoA has not received other applications, subsequent applications
should not be complicated. Registrations, once complete, are valid for
five years. As a feed, under a 2001 China Taxation Administration and
Customs Administration rule, imported DDGS would be exempted from a 13
percent value added tax (VAT). (See separate section on VAT.)

In addition, U.S. DDGS exporters must apply for a biotech import safety
certificate from MoA. The application procedure is the same as required
to import biotech products, including soybeans and corn. Exporters need
to take a copy of the safety certificate, issued to the seed companies,
to MoA\'s GMO Office and request an import safety certificate. Post does
not forecast any obstacles with the MoA certification process. (See GAIN
CH5069.)

### Market Opportunities

While there are opportunities for U.S. DDGS exports to China because of
the higher quality of U.S. DDDS compared with domestic product, feed
miller acceptance and competitive pricing will be critical.

The U.S. DDGS production process and more consistent inputs mean that
the U.S. product has a higher protein level than domestic DDGS. Except
for areas in the north around corn ethanol plants, feed millers and
industrial farm complexes are not familiar with the relatively new
product. Future marketing would require developing an understanding of
the nutritional value and use requirements.

## Wheat 

Wheat, like other grains, are considered lower risk, stable, income
crops when compared with vegetables, rapeseed, 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. Compared
with rice and corn, wheat production adopts a much higher rate of
mechanized planting and harvesting.

### Production 

Post estimates wheat production in MY06/07 is 103 MMT, up 6 percent from
the previous year. Good weather and MoA's production support programs
contributed to good yields and crop quality better than the previous
year. The acreage in MY06/07 is estimated to be 23.3 million Ha, up 2
percent from the previous year.

The planted area in MY07/08 is forecast to be 23.2 million Ha, down
slightly from the previous year. Wheat production in MY07/08 is forecast
to be 101 MMT, 2 MMT down from the previous year. The drought on
northern China plains hindered the wheat planting during November 2006.
In northern Shandong province the drought even caused some wheat farmers
to miss the planting season and, according to provincial agricultural
department officials, planting area is forecast down 5 percent from the
previous year. The wheat acreage in Shandong accounts for 14 percent of
national total wheat acreage in MY05/06. The lack of winter rainfall and
warmer weather is forecast to reduce yields for the MY07/08 crop.

### Consumption

Overall wheat consumption has been declining gradually. As incomes rise,
consumers replace carbohydrates with protein. By some estimates, per
capita food-grain consumption declined by over 1 percent annually in
MY05/06 and MY06/07. According to the National Statistical Bureau, in
home per capita consumption of grain in rural households dropped to 209
kg in 2005 from 250 kg in 2000 and in home per capita annual consumption
of grain by urban households dropped to 77 kg in 2004 from 82 Kg in
2000, annually down about 3 and 1 percent, respectively. Post estimate
that this decline will continue.

As urban demand for traditional wheat products (Chinese steamed bread)
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. As flour millers\' attempt to satisfy these
requirements by blending imported wheat with lower-quality domestic
wheat, import demand is expected to increase.

The flour millers\' purchase imported wheat either 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 

Wheat imports for MY06/07 were down 600,000 metric tons (MT) from the
previous marketing year to an estimated 700,000 MT as a result of good
harvest in MY06/07 and an oversupply in the domestic market. Wheat
imports in MY07/08 are forecast at 500,000 MT, 200,000 MT lower than the
previous year.

Most of China's wheat and flour exports go to nearby Asian countries.
Because of production declines in major wheat supplying countries,
China's wheat exports in MY06/07 are estimated at 2 MMT, 600,000 MT
higher than the previous year. In addition to flour-grade wheat exports,
more Chinese feed-wheat exports are expected in response to the rising
international price for feed grains. In MY06/07, feed wheat exports are
estimated to account for half China's total wheat exports.

### Stocks 

While stock levels are considered a national secret by the Chinese
government, Post estimates that ending stocks for MY06/07 and MY07/08
will be 35.3 and 35.8 MMT, respectively. Previously, the National
Statistical Bureau (NSB) surveyed the stock levels of government
entities, but survey data was not public and is incomplete, at best.

# 

## Rice 

### Production

Total rice production is estimated at 181 MMT (unmilled) in MY06/07, up
slightly over the previous year. Estimated area planted is 29 million
Ha, up one percent (increased mostly through double cropping) over the
previous year. Early-season rice production is estimated at 31.8 MMT,
unchanged from the previous year. Because of a slight increase in area
and higher than average yields, late-season rice production is estimated
at 149 MMT, up by less than one percent from the previous year.

Rice production for MY07/08 is forecast at 183 MMT, up slightly from the
previous year. The government\'s price support program (see Policy
section) has guaranteed reasonable returns for rice farmers. Rice
acreage in MY07/08 is forecast at 29.4 million Ha, up slightly from the
previous year.

### Consumption

MY06/07 consumption is estimated at 127.8 MMT (milled), down slightly
over the previous year. Indica rice varieties have been a predominant
staple food for the population in southern China, while Japonica rice
varieties are traditionally popular in northern China where people also
favor wheat flour based staple foods. As discussed in the wheat section,
surveys show per capita in house grain consumption (including rice and
wheat) is declining by over 1 percent and this trend is projected to
continue.

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. In MY06/07, because of a higher corn prices, Post
estimates an increased use of rice and wheat for feed. In the ethanol
sector, low priced indica rice has replaced some corn feedstock use in
MY06/07. While there is no reliable data on the feed use of rice,
Post\'s estimates are that approximately 10 MMT (unmilled) rice annually
is used for feed.

### Trade 

As of 2006, China has signed import quarantine protocols for rice with
Thailand, Uruguay, Vietnam and Pakistan. Most import varieties were
indica and Thailand and Vietnam ware principal suppliers in CY2006.
Currently, Japan is also negotiating an import quarantine protocol to
export rice to China.

Rice imports for MY06/07 are estimated at 900,000 metric tons. Rice
imports for MY07/08 are forecast at 900,000 metric tons, unchanged from
the previous year.

Rice exports in MY06/07 are estimated at 1.4 MMT. Rice exports in
MY06/07 are forecast at 1.5 MMT. 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 exported to African countries. As rice stock levels have
fallen, these exports have declined. China also exports Japonica
varieties to Japan, Russia and South Korea. These exports are small in
volume but highly profitable, and are forecast to continue.

### Stocks

While stock levels are considered a national secret by the Chinese
government, Post estimates that ending stocks for MY06/07 are 35 MMT,
and are forecast to be unchanged in MY07/08. Previously, the National
Statistical Bureau (NSB) surveyed the stock levels of government
entities, but survey data was not public and is incomplete, at best.

## Barley

Increased domestic demand and tight world supply is pushing up
international prices and opening new export opportunities for U.S.
barley to China. MY06/07 barley area is estimated at 880,000 Ha, up 3
percent over the previous year principally as a result of increased
demand from the brewery sector and a short supply in the international
market. Production is estimated at 3.5 MMT, up 2.5 percent over the
previous year. Post forecasts that both barley area and production in
MY06/07 will increase slightly over the previous year, as a result of
continued increased demand, especially from the brewery sector.

Gansu province is the largest and highest quality barley producer in
China and Post estimates its barley production at 700,000 MT, accounting
for 22 percent of total production. Producers in Gansu are price takers,
and because of the short supply internationally, provincial prices are
up 6 percent from the previous year to 1,700-1,750 RMB/MT (\$218/MT).

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 2006 will exceed 33 million
kilolitres with a growth rate of over 5 percent. The sector's total
demand for malting barley is estimated at around 4 MMT annually.
However, as a result of a poor crop in Australia, China's MY06/07
imported barley is estimated at 2 million, down 10 percent from the
previous year. Barley imports in MY07/08 are forecast up slightly as the
global supply rebounds. If international stocks remain short and prices
remain high, however, feed barley or other grains could be substituted,
despite the potential impact on beer quality.

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

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

  2003         Growth      2004        Growth      2005        Growth

  25,405       6%          29,480      16%         31,260      6%
  ------------ ----------- ----------- ----------- ----------- -----------

## Sorghum

Post estimates sorghum production is up almost 10 percent in MY06/07 to
2.8 MMT, and area up almost 4 percent to 590,000 Ha, over the previous
year. MY07/08 sorghum area and production is forecast up slightly from
the previous year. Sorghum is mostly planted on marginal land with no
irrigation.

While some sorghum is used for feed, the majority, approximately 2 MMT,
is used for hard liquor (ethanol-based) production. Production of
sorghum-based hard liquor is estimated at 3.5 MMT for MY06/07, up 6
percent from the previous year. Hard liquor consumption is forecast to
rise as consumer incomes rise and effective marketing campaigns by
distillers promote the gift-giving of traditional Chinese alcohol.
Promotions include significant prime time TV advertisements in recent
years.

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

+-----------+-----------+----------+----------+----------+-----------+
| #         |           |          |          |          |           |
| ##### Chi |           |          |          |          |           |
| na Hard L |           |          |          |          |           |
| iquor Pro |           |          |          |          |           |
| duction i |           |          |          |          |           |
| n 1000 MT |           |          |          |          |           |
+-----------+-----------+----------+----------+----------+-----------+
| Year      | 2001      | 2002     | 2003     | 2004     | 2005      |
+-----------+-----------+----------+----------+----------+-----------+
|           | 8,167     | 7,396    | 6,475    | 3,117    | 3,350     |
+-----------+-----------+----------+----------+----------+-----------+
| Growth    | 71.5%     | -9.4%    | -12.5%   | -51.9%   | 8%        |
| Rate      |           |          |          |          |           |
+-----------+-----------+----------+----------+----------+-----------+

Source: National Statistical Bureau

# 

## Ethanol

Total ethanol production in MY06/07 is estimated at 7 MMT. About 50
percent of total ethanol production is based on grains (mostly corn, but
including sorghum, wheat and rice) with the remainder based on tubers,
including cassava and sweet potatoes. Corn based ethanol production is
estimated at 2.4 MMT in MY06/07, including approximately 1 MMT of fuel
ethanol.

Total ethanol production is divided between approximately 1.3 MMT of
fuel ethanol, 2 MMT of ethanol for food alcohol production and the
remainder for surgical and industrial use.

### Fuel Ethanol 

The government strictly manages fuel ethanol sector. Currently, only
four licensed plants can market their products as fuel ethanol. Fuel
ethanol must be sold to one of the two state-owned oil companies.

Estimated fuel ethanol production in MY06/07 is 1.3 MMT, with
approximately 1 MMT based on corn as an input. Fuel ethanol production
in China is set to expand almost 1 MMT per year for the next five years,
but corn will not be a significant part of this expansion. Future plants
will mostly be based in the south or west and use either sweet sorgum,
tubors, or sugar cane. (See Biofuel Report CH6049 and CH6114.)

Total grain consumption in MY06/07 by the fuel ethanol sector is
estimated at about 4 MMT, of which about 3 MMT is 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 signaling the government's intention to curb the
expansion of grain based ethanol production.

### Ethanol Exports

Up over 500 percent from the previous year, the rising international
fuel price in 2006 propelled a big jump in China's ethanol exports.
Chinese government concerns that the development of export oriented
ethanol plants might lead to domestic grain shortages led to eliminating
the 13% VAT rebate on ethanol exports, effective January 2007. The
elimination of the VAT rebate will slow future exports.

  ----------- -------------------------- -------- ---------- ---------- ----------
  China                                                                 
  Ethanol                                                               
  Export in                                                             
  2004-2006                                                             
  (in 1,000                                                             
  MT)                                                                   

                                         2004     2005       2006       \% Change

   Group      Ethanol                    82,375   137,873    865,112    527.47

   220710     ETHYL ALCOHOL, UNDENAT,    77,857   134,856    825,113    511.85

   220720     ETHYL ALCOHOL & OTH        4,519    3,018      39,999     1,225.66
              SPIRITS DENATURED ANY                                     
              STRENGTH                                                  

  Source of                                                             
  data: China                                                           
  Customs                                                               
  ----------- -------------------------- -------- ---------- ---------- ----------

# 

# Policy

China\'s national security objectives include increasing farm income,
adequate calories for their population, and by extension,
self-sufficiency in key commodities. Prior to market liberalization, the
party apparatus controlled all production, distribution and trade. Price
supports for key commodities were substituted for market control and
remain for key commodities: rice and wheat.

China liberalized production and distribution first in produce, in the
late 1980s, and in grains and oilseeds beginning in 1997. Even after
liberalization, however, China retained its long-term self-sufficiency
objective for food grains, and defined food grains to include rice,
wheat and corn. While the growing demand for corn by livestock and
industrial users has led to discussions in Chinese think tanks that
China's self-sufficiency objective should be limited to rice and wheat,
Post predicts that his will take at least two to four years and will
coincide with a disaster induced domestic supply shortage, like a major
crop failure.

In 2001, concurrent with China\'s accession to the World Trade
Organization (WTO), China adopted policies in grain production and
trade, including seed subsidies and tariff rate quotas. In 2003, China
was short wheat and imported 10 MMT. In response, China implemented a
series of policies, effective 2004, including the elimination of taxes
on agricultural land (discussed above with respect to corn production),
direct payments to grain farmers, adjustment in the price support
programs, and in 2005, a subsidy for the purchase of farm machinery. In
2006, in addition to the existing value added tax (VAT) exemption for
farm use of seed and fertilizers, China added a direct subsidy for farm
use of fuel and fertilizers.

Since 2004, the No. 1 Decree of the central government has been support
of the rural community and improved farm income. Most recently, in 2006,
this was incorporated by the National People\'s Congress in the 11^th^
five-year plan which includes the specific the objective of increasing
farm income. MoA has included maintaining the annual sown area of grains
above 100 million Ha and increasing average annual grain yield to one
percent as a component part of meeting this objective.

## 

## ![](media/image3.wmf){width="4.583464566929134in" height="3.4925196850393703in"}Grain Prices and Farmer Income 

Average prices have been up for corn, wheat and rice in MY06/07, 16, 3.3
and 3.4 percent, respectively, over the previous year. The current
market prices for wheat and rice are just over their floor prices and
are driven by government auctions of grain purchased in MY06/07 and
before. (See Price Support below.)

While lower than their urban counterparts, in 2006, net per capita farm
income rose 7.4 percent to RMB 3,587 (\$460), according to the National
Statistical Bureau. The per capita non-farm income rose 17 percent year
on year to RMB1,375 (\$176). For grain farmers, the average net
profit/Ha (wheat, corn and rice) in 2006 is estimated to be higher than
2005 due to rising grain prices. See table.

<table>
<colgroup>
<col style="width: 22%" />
<col style="width: 11%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 9%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><h6
id="net-profit-for-grain-farmers-in-us-ha-in-1997-2005">Net Profit for
Grain Farmers (in US $/Ha) in 1997-2005</h6></td>
</tr>
<tr class="even">
<td>Year</td>
<td>1997</td>
<td>1998</td>
<td>1999</td>
<td>2000</td>
<td>2001</td>
<td>2002</td>
<td>2003</td>
<td>2004</td>
<td>2005</td>
</tr>
<tr class="odd">
<td>Net Profit/Ha</td>
<td>191</td>
<td>144</td>
<td>46</td>
<td>-6</td>
<td>71</td>
<td>9</td>
<td>62</td>
<td>356</td>
<td>236</td>
</tr>
<tr class="even">
<td colspan="10">Source: National Development &amp; Reform
Commission</td>
</tr>
</tbody>
</table>

## Grain Support Programs 

China's rice, wheat and corn self-sufficiency objective is implemented
using direct payments, seed subsidies, tariff rate quotas (discussed
separately), price support programs (in the case of rice and wheat),
subsidies for farm machinery, and subsidies for farm use of fuel and
fertilizers. In MY06/07, these policies have produced a slight
oversupply of rice and wheat, leading to some exports, which will
continue in MY07/08. Corn production has been mostly driven by the
growing domestic demand for corn from livestock and industrial users.
This demand is estimated to outstrip supplies in MY06/07, drawing down
stocks and drawing in imports, and is forecast to do the same in
MY07/08.

### 

  -------------- --------------- -------------- --------------- -----------------
  **Government                                                  
  Support                                                       
  Programs in                                                   
  2006 (in                                                      
  RMB)**                                                        

                 Direct Payment  Seed Subsidy   Machinery       Fuel/fertilizer
                                                Subsidy         Subsidy

  2006           14.2 billion    4.1 billion    600 million     12.5 billion

  2005           13.2 billion    3.9 billion    300 million     NA
  -------------- --------------- -------------- --------------- -----------------

The grain direct subsidy (payment to the grain farmer), seed subsidy,
farm machinery subsidy, comprehensive subsidy and other financial awards
to major grain producing counties totaled RMB 39.37 billion (\$5.05
billion) in 2006, according to the state media. In addition, government
investment in rural infrastructure in 2006 totaled RMB 53 billion (\$6.8
billion). In 2007, government spending on the agricultural sector is
expected to be higher than the previous year. The budget will be
approved and announced after National People's Congress in March.

### 

### Direct Payments

In 2004, the central government offered a program of direct payments to
grain growers, implemented at the discretion of the provinces.
Implementation varies by province, with some providing the subsidy based
on planted area and others based on quantity produced. The average
program payment is \$18/ha, slightly less than \$9 per average farm
household in 2004. In 2005 and 2006, the payment averaged about \$10 per
farm household.

### Seed Subsidy 

In 2001 MoA implemented 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 4.07
billion (\$521 million) in 2006, up 5 percent from 2005. The program is
intended to expand production through improved seed quality. Funding is
principally provided through MoA and implementation is at the provincial
level.

Implementation varies by commodity and province, but basically falls
into two categories: direct payments or discounted seeds. As a direct
payment it is an income support mechanism where the farmer is provided
between RMB 10-15/mu (\$19-23/Ha) to purchase seed, but what the farmer
actually does with the payment is not monitored.

+---------+------------------------+----------------+-----------------+
| ######  |                        |                |                 |
|  Winter |                        |                |                 |
|  Wheat  |                        |                |                 |
| Seed Su |                        |                |                 |
| bsidy P |                        |                |                 |
| rogram  |                        |                |                 |
+---------+------------------------+----------------+-----------------+
|         | Total Subsidy (RMB)    | Provinces      | Area Covered    |
+---------+------------------------+----------------+-----------------+
| 2004    | 100,000,000            | 6              | 50%             |
+---------+------------------------+----------------+-----------------+
| 2005    | 1,000,000,000          | 11             | 54%             |
+---------+------------------------+----------------+-----------------+
| 2006    | 1,000,000,000          | 11             | 54%             |
+---------+------------------------+----------------+-----------------+

Alternatively, the subsidy is provided for farmers to purchase high
quality seed at commodity prices. The subsidy is approximately RMB 10/mu
(\$19/Ha) and may take the form of a payment to the seed company to
provide a specific type of seed at commodity prices, or a reimbursement
to the farmer for seed purchased. In Henan, the provincial government
identifies the preferred wheat varieties and seed companies offer
discounted prices. After the sale, the seed company receives a subsidy
of approximately RMB 1/kg of wheat seed. (Seed wheat usage averages 10
kg/mu (150 Kg/Ha) in Henan.)

### Price Support Programs

In 2006, the central government continued it prices support program for
major producers of rice and wheat. Provinces benefiting from a rice
price floor were Jilin, Heilongjiang, Anhui, Jiangxi, Hubei, Hunan and
Sichuan. Provicnes benfitting from a wheat price floor were Hebei,
Jiangsu, Anhui, Shandong, Henan and Hubei.

The floor price is set every year by NDRC in collaboration with the
Ministry of Finance, the State Administration for Grain (SAG), the China
Agricultural Development Bank (CADB), and MoA. Implementation is by SAG
and the quasi-governmental SinoGrain Corporation, and funded by loans
from CADB. Loans are recovered by commodity sales later in the marketing
year or in subsequent marketing years. Post concurs with state media
reports that the floor price on wheat and rice will remain unchanged in
2007.

# 

#### Rice Floor Price Program 

If prices drop below the price floor, farmers in the designated
provinces may sell their grain to SinoGrain, a state enterprise
responsible for holding grain reserves, or its provincial counterparts,
at the floor price. After the July 2006 harvest, SinoGrain and its
subsidiaries purchased 3.63 MMT of early indica rice and 4.9 MMT late
season indica rice in four major rice producing provinces (Jiangxi,
Anhui, Hubei and Hunan). The price level for Japonica never fell below
the floor price during the marketing year.

As of February 7, 2007, the government has held 29 auctions and sold
about 9 MMT of rice, including some rice from MY05/06. All sales were
above the government set floor price. With 40 percent of total rice
production used on-farm, these government purchases accounts for 60% and
30% of the total marketable rice crop in the region.

After harvest, farmers have 4 months to exercise their option to sell at
the price floor. 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 2006 price floor for rice was unchanged from
2005. The price floor for 2007 is forecast to remain unchanged.

#### Wheat Floor Price Program

In 2006, for the first time, the government publicly announced a floor
price for wheat in the six major wheat-producing provinces. The program
works like the rice program and because the market price fell below the
floor price at harvest time, most wheat farmer sold to the government.
Post estimates that the government purchased 80 of commercially
available wheat (with approximately 10 percent remaining on the farm),
in MY06/07. CADB loans for the purchase were RMB65.9 billion (\$8.45
billion).

The government began auctioning stocks in Oct 2006 and by February 1,
2007, the government had held 12 auctions and sold 7 MMT of wheat
purchased in 2006. All sales were RMB 1440-1630, above the government
set floor price.

After harvest, farmers have 4 months to exercise their option to sell at
the floor price. The prices vary slightly by variety. During
June-September 2006, SinoGrain and its subsidiaries purchased 41 MMT of
wheat at an average floor price of RMB1,420/ton (\$182/ton) in the six
eligible provinces.

### Subsidy on Farm Machinery

The central government provided RMB 600 million (\$77 million) in 2006
for the purchase of farm machinery, up 100 percent, and the program
covered 1,126 counties, up from 500 counties from the previous year.
Complementing central government funds, the provincial governments
provided RMB 110 million (\$14 million) in 2006, up 38 percent from the
previous year. According to MoA, in 2007, program funding will be
expanded and the program will be extended to two thirds of agricultural
counties nationwide.

The program offsets the cost of purchases by reimbursing the farmer or
compensating the seller for 20 to 30 percent of the purchase price. In
2006, the cost-sharing program stimulated expenditure for farm machinery
to over RMB 4.5 billion (\$577 million). The program is implemented at
the provincial level and local governments decide on machines and models
eligible for the subsidy. Mostly the subsidy has supported the
mechanization of wheat harvesting and rice planting. In 2007, the
government will continue trials on mechanized corn harvesting.

# 

### Comprehensive Subsidy on Fuel and Fertilizer

In 2006, government implemented a comprehensive subsidy on fuel and
fertilizer for grain farmers. According to Ministry of Finance, the
comprehensive subsidy was RMB 12.5 billion (\$1.6 billion). Payments
averaged about \$6.6 per farm household. The program is intended to
partially compensate farmers for price increases in fuel, fertilizer and
other agricultural inputs.

## Elimination of Agricultural Tax

Since 2004, the government began reducing agricultural taxes on farmland
(simultaneously introducing direct payments). Prior to 2004 there had
been a decades old 7 percent tax on agricultural production. In 2006,
the government announced all the provinces eliminated the agricultural
tax.

## Tariff Rate Quotas

+---------------+-------------+-----------+-----------+---------------+
| **2006 Grain  |             |           |           |               |
| Tariff Rate   |             |           |           |               |
| Quota         |             |           |           |               |
| (TRQ):**      |             |           |           |               |
|               |             |           |           |               |
| **Allocation  |             |           |           |               |
| and Fill Rate |             |           |           |               |
| (Metric Tons  |             |           |           |               |
| )**           |             |           |           |               |
+---------------+-------------+-----------+-----------+---------------+
| **Commodity** | **TRQ**     | **        | **Fill    | **State       |
|               |             | Imports** | Rate**    | Enterprise    |
|               |             |           |           | Share**       |
+---------------+-------------+-----------+-----------+---------------+
| **Wheat**     | 9,636,000   | 625       | 1%        | 90%           |
+---------------+-------------+-----------+-----------+---------------+
| **Corn**      | 7,200,000   | 62,186    | 1%        | 60%           |
+---------------+-------------+-----------+-----------+---------------+
| **Rice**      | 5,320,000   | 719,000   | 14%       | 50%           |
+---------------+-------------+-----------+-----------+---------------+

Upon membership to the World Trade Organization (WTO), China established
Tariff Rate Quotas (TRQ) for wheat, rice, corn, and several other
commodities. These quotas were phased in and reached final levels in
2004. The percentage of the quota reserved for non-state-owned
enterprises is 10, 40 and 50 percent for wheat, corn, rice (short and
long grain), respectively.

## VAT Exemptions: Hidden Protections

Farm Inputs: Certain categories of farm inputs are exempt from VAT.
Seed, irrigation fees, and most fertilizers, representing at least one
quarter of inputs, are VAT-free have an imputed VAT value of 13 percent.
(See GAIN CH7018)

Farm Sales: The following are considered VAT-free agricultural products:
All products sold from agricultural producers where agricultural
producers are individuals or organizations handling agricultural
production. Certain state trading enterprises that buy from the farm and
sell to primary processors, like feed or flower mills, are considered to
be handling agricultural production. Others may associate with these
state trading enterprises or operate in the black market, aggregating
farm production and effectively acting as farmer agents.

Producer exceptions-imputed VAT: Buyers of products from farmers may
claim 13 percent of these products' value as a purchase VAT. This
exemption protects processors from paying the VAT that farmers are
exempt from (and from double payment of VAT for farm inputs that were
not VAT-free).

Producer exceptions-domestic feed: Domestic feed products VAT-free. This
includes mixed feed, compound feed, premix feed, feed concentrate, bran,
DDGS, oilseed meal (excluding soybean meal), fishmeal and bone meal.
Domestic feed grains are exempt under the \"farm sales\" rule. Feed
additives are subject to VAT.

Import Exemptions: The following 15 imported feed ingredients are
VAT-free. All other feed ingredients are subject to (normally a 13
percent VAT).

  --------------- ---------- ----------------------------------- ------------ ------------
  **List of VAT                                                               
  Exemption on                                                                
  the imported                                                                
  Feed                                                                        
  Ingredients**                                                               

                  HS Code    Commodity Name                      Legitimate   Effective
                                                                 VAT          VAT

  1               23012010   Fish Meal                           13%          Exempted

  2               23012090   Other Aquatic Residue               13%          Exempted

  3               23021000   Bran, Sharps and other Residue of   13%          Exempted
                             Corn                                             

  4               23022000   Bran, Sharps, other Residue of Corn 13%          Exempted
                             of Rice                                          

  5               23023000   Bran, Sharps, other Residue of      13%          Exempted
                             Wheat                                            

  6               23024000   Other Grain Residue                 13%          Exempted

  7               23033000   DDGS                                13%          Exempted

  8               23050000   Peanut Meal                         13%          Exempted

  9               23061000   Cotton Seed Meal                    13%          Exempted

  10              23062000   Flax Seed Meal                      13%          Exempted

  11              23063000   Sun Flower Meal                     13%          Exempted

  12              24064000   Rapeseed Meal                       13%          Exempted

  13              23070000   Wine Lees                           13%          Exempted

  14              12141000   Alfalfa Meal,Pellet                 13%          Exempted

  15              12149000   Alfalfa, others                     13%          Exempted
  --------------- ---------- ----------------------------------- ------------ ------------

# 

# Statistical Tables

## 

## PSD tables

### 

### Table 1. Corn PSD Table

<table>
<colgroup>
<col style="width: 19%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p><strong>Country</strong></p>
<p><strong>China, Peoples Republic of</strong></p></td>
</tr>
<tr class="even">
<td><strong>Commodity</strong></td>
<td><strong>Corn</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3">(1000 HA)(1000 MT)(MT/HA)</td>
</tr>
<tr class="odd">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="odd">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>10/2005</td>
<td>10/2005</td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>26358</td>
<td>26200</td>
<td>26358</td>
<td>27000</td>
<td>26250</td>
<td>27000</td>
<td>0</td>
<td>0</td>
<td>27200</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>36555</td>
<td>40555</td>
<td>36555</td>
<td>35255</td>
<td>39575</td>
<td>33890</td>
<td>33355</td>
<td>35575</td>
<td>29490</td>
</tr>
<tr class="even">
<td>Production</td>
<td>139365</td>
<td>134000</td>
<td>135000</td>
<td>143000</td>
<td>132000</td>
<td>142000</td>
<td>0</td>
<td>0</td>
<td>143000</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>62</td>
<td>20</td>
<td>62</td>
<td>100</td>
<td>1000</td>
<td>100</td>
<td>0</td>
<td>0</td>
<td>800</td>
</tr>
<tr class="even">
<td>TY Imports</td>
<td>62</td>
<td>20</td>
<td>62</td>
<td>100</td>
<td>1000</td>
<td>100</td>
<td>0</td>
<td>0</td>
<td>800</td>
</tr>
<tr class="odd">
<td>TY Imp. from U.S.</td>
<td>115</td>
<td>0</td>
<td>115</td>
<td>0</td>
<td>600</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>175982</td>
<td>174575</td>
<td>171617</td>
<td>178355</td>
<td>172575</td>
<td>175990</td>
<td>33355</td>
<td>35575</td>
<td>173290</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>3727</td>
<td>4000</td>
<td>3727</td>
<td>4000</td>
<td>2000</td>
<td>4000</td>
<td>0</td>
<td>0</td>
<td>1000</td>
</tr>
<tr class="even">
<td>TY Exports</td>
<td>3727</td>
<td>4000</td>
<td>3727</td>
<td>4000</td>
<td>2000</td>
<td>4000</td>
<td>0</td>
<td>0</td>
<td>1000</td>
</tr>
<tr class="odd">
<td>Feed Consumption</td>
<td>101000</td>
<td>99000</td>
<td>99000</td>
<td>103000</td>
<td>100500</td>
<td>102500</td>
<td>0</td>
<td>0</td>
<td>106000</td>
</tr>
<tr class="even">
<td>FSI Consumption</td>
<td>36000</td>
<td>32000</td>
<td>35000</td>
<td>38000</td>
<td>34500</td>
<td>40000</td>
<td>0</td>
<td>0</td>
<td>44000</td>
</tr>
<tr class="odd">
<td>Total Consumption</td>
<td>137000</td>
<td>131000</td>
<td>134000</td>
<td>141000</td>
<td>135000</td>
<td>142500</td>
<td>0</td>
<td>0</td>
<td>150000</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>35255</td>
<td>39575</td>
<td>33890</td>
<td>33355</td>
<td>35575</td>
<td>29490</td>
<td>0</td>
<td>0</td>
<td>22290</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>175982</td>
<td>174575</td>
<td>171617</td>
<td>178355</td>
<td>172575</td>
<td>175990</td>
<td>0</td>
<td>0</td>
<td>173290</td>
</tr>
</tbody>
</table>

### Table 2. Wheat PSD Table 

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p><strong>Country</strong></p>
<p><strong>China, Peoples Republic of</strong></p></td>
</tr>
<tr class="even">
<td><strong>Commodity</strong></td>
<td><strong>Wheat</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3">(1000 HA)(1000 MT)(MT/HA)</td>
</tr>
<tr class="odd">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="odd">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>07/2005</td>
<td>07/2005</td>
<td></td>
<td>07/2006</td>
<td>07/2006</td>
<td></td>
<td>07/2007</td>
<td>07/2007</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>22792</td>
<td>22850</td>
<td>22792</td>
<td>23400</td>
<td>22950</td>
<td>23300</td>
<td>0</td>
<td>0</td>
<td>23200</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>38819</td>
<td>42116</td>
<td>38819</td>
<td>34890</td>
<td>39116</td>
<td>34890</td>
<td>35590</td>
<td>37116</td>
<td>35390</td>
</tr>
<tr class="even">
<td>Production</td>
<td>97450</td>
<td>97000</td>
<td>97450</td>
<td>103500</td>
<td>97500</td>
<td>103000</td>
<td>0</td>
<td>0</td>
<td>101000</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>1018</td>
<td>1300</td>
<td>1018</td>
<td>700</td>
<td>1300</td>
<td>500</td>
<td>0</td>
<td>0</td>
<td>400</td>
</tr>
<tr class="even">
<td>TY Imports</td>
<td>1018</td>
<td>1300</td>
<td>1018</td>
<td>700</td>
<td>1300</td>
<td>500</td>
<td>0</td>
<td>0</td>
<td>400</td>
</tr>
<tr class="odd">
<td>TY Imp. from U.S.</td>
<td>407</td>
<td>500</td>
<td>407</td>
<td>0</td>
<td>500</td>
<td>150</td>
<td>0</td>
<td>0</td>
<td>100</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>137287</td>
<td>140416</td>
<td>137287</td>
<td>139090</td>
<td>137916</td>
<td>138390</td>
<td>35590</td>
<td>37116</td>
<td>136790</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>1397</td>
<td>800</td>
<td>1397</td>
<td>2500</td>
<td>800</td>
<td>2000</td>
<td>0</td>
<td>0</td>
<td>1500</td>
</tr>
<tr class="even">
<td>TY Exports</td>
<td>1397</td>
<td>800</td>
<td>1397</td>
<td>2500</td>
<td>800</td>
<td>2000</td>
<td>0</td>
<td>0</td>
<td>1500</td>
</tr>
<tr class="odd">
<td>Feed Consumption</td>
<td>3500</td>
<td>2000</td>
<td>3500</td>
<td>4000</td>
<td>1600</td>
<td>4500</td>
<td>0</td>
<td>0</td>
<td>4000</td>
</tr>
<tr class="even">
<td>FSI Consumption</td>
<td>97500</td>
<td>98500</td>
<td>97500</td>
<td>97000</td>
<td>98400</td>
<td>96500</td>
<td>0</td>
<td>0</td>
<td>95500</td>
</tr>
<tr class="odd">
<td>Total Consumption</td>
<td>101000</td>
<td>100500</td>
<td>101000</td>
<td>101000</td>
<td>100000</td>
<td>101000</td>
<td>0</td>
<td>0</td>
<td>99500</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>34890</td>
<td>39116</td>
<td>34890</td>
<td>35590</td>
<td>37116</td>
<td>35390</td>
<td>0</td>
<td>0</td>
<td>35790</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>137287</td>
<td>140416</td>
<td>137287</td>
<td>139090</td>
<td>137916</td>
<td>138390</td>
<td>0</td>
<td>0</td>
<td>136790</td>
</tr>
</tbody>
</table>

### Table 3. Rice PSD Table 

<table>
<colgroup>
<col style="width: 19%" />
<col style="width: 8%" />
<col style="width: 9%" />
<col style="width: 3%" />
<col style="width: 5%" />
<col style="width: 9%" />
<col style="width: 5%" />
<col style="width: 3%" />
<col style="width: 6%" />
<col style="width: 2%" />
<col style="width: 7%" />
<col style="width: 1%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="14"><p><strong>Country</strong></p>
<p id="china-peoples-republic-of" class="heading">China, Peoples
Republic of</p></td>
</tr>
<tr class="even">
<td><strong>Commodity</strong></td>
<td colspan="2"><strong>Rice, Milled</strong></td>
<td></td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="3">(1000 HA)(1000 MT)(MT/HA)</td>
</tr>
<tr class="odd">
<td></td>
<td>2005</td>
<td>Revised</td>
<td colspan="2"></td>
<td>2006</td>
<td colspan="2">Estimate</td>
<td colspan="2"></td>
<td colspan="2">2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td colspan="2"><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td colspan="2"><p>Post</p>
<p>Estimate</p></td>
<td colspan="2"><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td colspan="2"><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="odd">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>01/2006</td>
<td colspan="2">01/2006</td>
<td></td>
<td colspan="2">01/2007</td>
<td colspan="2">01/2007</td>
<td colspan="2"></td>
<td>01/2008</td>
<td>01/2008</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>28847</td>
<td>29000</td>
<td colspan="2">28847</td>
<td>29200</td>
<td colspan="2">29200</td>
<td colspan="2">29200</td>
<td colspan="2">0</td>
<td>0</td>
<td>29400</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>38931</td>
<td>38144</td>
<td colspan="2">38931</td>
<td>36829</td>
<td colspan="2">33144</td>
<td colspan="2">36327</td>
<td colspan="2">36629</td>
<td>29944</td>
<td>35027</td>
</tr>
<tr class="even">
<td>Milled Production</td>
<td>126414</td>
<td>127400</td>
<td colspan="2">126414</td>
<td>128000</td>
<td colspan="2">129000</td>
<td colspan="2">127000</td>
<td colspan="2">0</td>
<td>0</td>
<td>128000</td>
</tr>
<tr class="odd">
<td>Rough Production</td>
<td>180591</td>
<td>182000</td>
<td colspan="2">180591</td>
<td>182857</td>
<td colspan="2">184286</td>
<td colspan="2">181429</td>
<td colspan="2">0</td>
<td>0</td>
<td>182857</td>
</tr>
<tr class="even">
<td>Milling Rate (.9999)</td>
<td>7000</td>
<td>7000</td>
<td colspan="2">7000</td>
<td>7000</td>
<td colspan="2">7000</td>
<td colspan="2">7000</td>
<td colspan="2">0</td>
<td>0</td>
<td>7000</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>700</td>
<td>500</td>
<td colspan="2">719</td>
<td>800</td>
<td colspan="2">800</td>
<td colspan="2">900</td>
<td colspan="2">0</td>
<td>0</td>
<td>900</td>
</tr>
<tr class="even">
<td>TY Imports</td>
<td>700</td>
<td>500</td>
<td colspan="2">719</td>
<td>800</td>
<td colspan="2">800</td>
<td colspan="2">900</td>
<td colspan="2">0</td>
<td>0</td>
<td>900</td>
</tr>
<tr class="odd">
<td>TY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>166045</td>
<td>166044</td>
<td colspan="2">166064</td>
<td>165629</td>
<td colspan="2">162944</td>
<td colspan="2">164227</td>
<td colspan="2">36629</td>
<td>29944</td>
<td>163927</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>1216</td>
<td>800</td>
<td colspan="2">1237</td>
<td>1200</td>
<td colspan="2">800</td>
<td colspan="2">1400</td>
<td colspan="2">0</td>
<td>0</td>
<td>1500</td>
</tr>
<tr class="even">
<td>TY Exports</td>
<td>1216</td>
<td>800</td>
<td colspan="2">1237</td>
<td>1200</td>
<td colspan="2">800</td>
<td colspan="2">1400</td>
<td colspan="2">0</td>
<td>0</td>
<td>1500</td>
</tr>
<tr class="odd">
<td>Total Consumption</td>
<td>128000</td>
<td>132100</td>
<td colspan="2">128500</td>
<td>127800</td>
<td colspan="2">132200</td>
<td colspan="2">127800</td>
<td colspan="2">0</td>
<td>0</td>
<td>127100</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>36829</td>
<td>33144</td>
<td colspan="2">36327</td>
<td>36629</td>
<td colspan="2">29944</td>
<td colspan="2">35027</td>
<td colspan="2">0</td>
<td>0</td>
<td>35327</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>166045</td>
<td>166044</td>
<td colspan="2">166064</td>
<td>165629</td>
<td colspan="2">162944</td>
<td colspan="2">164227</td>
<td colspan="2">0</td>
<td>0</td>
<td>163927</td>
</tr>
</tbody>
</table>

### Table 4. Barley PSD Table 

<table>
<colgroup>
<col style="width: 20%" />
<col style="width: 10%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p><strong>Country</strong></p>
<p><strong>China, Peoples Republic of</strong></p></td>
</tr>
<tr class="even">
<td><strong>Commodity</strong></td>
<td><strong>Barley</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3">(1000 HA)(1000 MT)(MT/HA)</td>
</tr>
<tr class="odd">
<td></td>
<td>2005</td>
<td>Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="odd">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td>10/2005</td>
<td>10/2005</td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>850</td>
<td>850</td>
<td>850</td>
<td>880</td>
<td>880</td>
<td>880</td>
<td>0</td>
<td>0</td>
<td>860</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>197</td>
<td>327</td>
<td>197</td>
<td>261</td>
<td>372</td>
<td>361</td>
<td>311</td>
<td>417</td>
<td>401</td>
</tr>
<tr class="even">
<td>Production</td>
<td>3400</td>
<td>3400</td>
<td>3400</td>
<td>3500</td>
<td>3500</td>
<td>3500</td>
<td>0</td>
<td>0</td>
<td>3400</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>2217</td>
<td>2100</td>
<td>2217</td>
<td>2000</td>
<td>2200</td>
<td>2000</td>
<td>0</td>
<td>0</td>
<td>2100</td>
</tr>
<tr class="even">
<td>TY Imports</td>
<td>2217</td>
<td>2100</td>
<td>2217</td>
<td>2000</td>
<td>2200</td>
<td>2000</td>
<td>0</td>
<td>0</td>
<td>2100</td>
</tr>
<tr class="odd">
<td>TY Imp. from U.S.</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>5814</td>
<td>5827</td>
<td>5814</td>
<td>5761</td>
<td>6072</td>
<td>5861</td>
<td>311</td>
<td>417</td>
<td>5901</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>3</td>
<td>5</td>
<td>3</td>
<td>0</td>
<td>5</td>
<td>10</td>
<td>0</td>
<td>0</td>
<td>10</td>
</tr>
<tr class="even">
<td>TY Exports</td>
<td>3</td>
<td>5</td>
<td>3</td>
<td>0</td>
<td>5</td>
<td>10</td>
<td>0</td>
<td>0</td>
<td>10</td>
</tr>
<tr class="odd">
<td>Feed Consumption</td>
<td>1400</td>
<td>1400</td>
<td>1400</td>
<td>1200</td>
<td>1400</td>
<td>1200</td>
<td>0</td>
<td>0</td>
<td>1100</td>
</tr>
<tr class="even">
<td>FSI Consumption</td>
<td>4150</td>
<td>4050</td>
<td>4050</td>
<td>4250</td>
<td>4250</td>
<td>4250</td>
<td>0</td>
<td>0</td>
<td>4450</td>
</tr>
<tr class="odd">
<td>Total Consumption</td>
<td>5550</td>
<td>5450</td>
<td>5450</td>
<td>5450</td>
<td>5650</td>
<td>5450</td>
<td>0</td>
<td>0</td>
<td>5550</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>261</td>
<td>372</td>
<td>361</td>
<td>311</td>
<td>417</td>
<td>401</td>
<td>0</td>
<td>0</td>
<td>341</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>5814</td>
<td>5827</td>
<td>5814</td>
<td>5761</td>
<td>6072</td>
<td>5861</td>
<td>0</td>
<td>0</td>
<td>5901</td>
</tr>
</tbody>
</table>

### Table 5. Sorghum PSD Table 

<table style="width:100%;">
<colgroup>
<col style="width: 19%" />
<col style="width: 11%" />
<col style="width: 2%" />
<col style="width: 6%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 5%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="11"><p><strong>Country</strong></p>
<p><strong>China, Peoples Republic of</strong></p></td>
</tr>
<tr class="even">
<td><strong>Commodity</strong></td>
<td colspan="2"><strong>Sorghum</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3">(1000 HA)(1000 MT)(MT/HA)</td>
</tr>
<tr class="odd">
<td></td>
<td>2005</td>
<td colspan="2">Revised</td>
<td></td>
<td>2006</td>
<td>Estimate</td>
<td></td>
<td>2007</td>
<td>Forecast</td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td><p>USDA</p>
<p>Official</p></td>
<td colspan="2"><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
<td><p>USDA</p>
<p>Official</p></td>
<td><p>Post</p>
<p>Estimate</p></td>
<td><p>Post</p>
<p>Estimate</p>
<p>New</p></td>
</tr>
<tr class="odd">
<td><strong>Market Year Begin</strong></td>
<td></td>
<td colspan="2">10/2005</td>
<td>10/2005</td>
<td></td>
<td>10/2006</td>
<td>10/2006</td>
<td></td>
<td>10/2007</td>
<td>10/2007</td>
</tr>
<tr class="even">
<td>Area Harvested</td>
<td>570</td>
<td colspan="2">550</td>
<td>570</td>
<td>590</td>
<td>520</td>
<td>590</td>
<td>0</td>
<td>0</td>
<td>600</td>
</tr>
<tr class="odd">
<td>Beginning Stocks</td>
<td>156</td>
<td colspan="2">156</td>
<td>156</td>
<td>186</td>
<td>141</td>
<td>185</td>
<td>206</td>
<td>136</td>
<td>265</td>
</tr>
<tr class="even">
<td>Production</td>
<td>2546</td>
<td colspan="2">2300</td>
<td>2546</td>
<td>2580</td>
<td>2200</td>
<td>2800</td>
<td>0</td>
<td>0</td>
<td>2850</td>
</tr>
<tr class="odd">
<td>MY Imports</td>
<td>10</td>
<td colspan="2">10</td>
<td>9</td>
<td>15</td>
<td>15</td>
<td>10</td>
<td>0</td>
<td>0</td>
<td>12</td>
</tr>
<tr class="even">
<td>TY Imports</td>
<td>10</td>
<td colspan="2">10</td>
<td>9</td>
<td>15</td>
<td>15</td>
<td>10</td>
<td>0</td>
<td>0</td>
<td>12</td>
</tr>
<tr class="odd">
<td>TY Imp. from U.S.</td>
<td>0</td>
<td colspan="2">0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>0</td>
</tr>
<tr class="even">
<td>Total Supply</td>
<td>2712</td>
<td colspan="2">2466</td>
<td>2711</td>
<td>2781</td>
<td>2356</td>
<td>2995</td>
<td>206</td>
<td>136</td>
<td>3087</td>
</tr>
<tr class="odd">
<td>MY Exports</td>
<td>26</td>
<td colspan="2">25</td>
<td>26</td>
<td>25</td>
<td>20</td>
<td>30</td>
<td>0</td>
<td>0</td>
<td>25</td>
</tr>
<tr class="even">
<td>TY Exports</td>
<td>26</td>
<td colspan="2">25</td>
<td>26</td>
<td>25</td>
<td>20</td>
<td>30</td>
<td>0</td>
<td>0</td>
<td>25</td>
</tr>
<tr class="odd">
<td>Feed Consumption</td>
<td>400</td>
<td colspan="2">400</td>
<td>400</td>
<td>450</td>
<td>200</td>
<td>470</td>
<td>0</td>
<td>0</td>
<td>540</td>
</tr>
<tr class="even">
<td>FSI Consumption</td>
<td>2100</td>
<td colspan="2">1900</td>
<td>2100</td>
<td>2100</td>
<td>2000</td>
<td>2270</td>
<td>0</td>
<td>0</td>
<td>2340</td>
</tr>
<tr class="odd">
<td>Total Consumption</td>
<td>2500</td>
<td colspan="2">2300</td>
<td>2500</td>
<td>2550</td>
<td>2200</td>
<td>2740</td>
<td>0</td>
<td>0</td>
<td>2880</td>
</tr>
<tr class="even">
<td>Ending Stocks</td>
<td>186</td>
<td colspan="2">141</td>
<td>185</td>
<td>206</td>
<td>136</td>
<td>225</td>
<td>0</td>
<td>0</td>
<td>182</td>
</tr>
<tr class="odd">
<td>Total Distribution</td>
<td>2712</td>
<td colspan="2">2466</td>
<td>2711</td>
<td>2781</td>
<td>2356</td>
<td>2995</td>
<td>0</td>
<td>0</td>
<td>3127</td>
</tr>
</tbody>
</table>

## Price Tables

### Table 6. Corn Price Table

+-----------------------+-----------------------+-----------------------+
| ###                   |                       |                       |
| ### China\'s Average  |                       |                       |
| Corn Wholesale Prices |                       |                       |
+-----------------------+-----------------------+-----------------------+
| (Renminbi Per Metric  |                       |                       |
| Ton, USD 1.00 = RMB   |                       |                       |
| 8.27)                 |                       |                       |
+-----------------------+-----------------------+-----------------------+
|                       | Producing Region/1    | Consuming Region/2    |
+-----------------------+-----------------------+-----------------------+
| National Average      |                       |                       |
+-----------------------+-----------------------+-----------------------+
| January (2005)        | 1113                  | 1275                  |
+-----------------------+-----------------------+-----------------------+
| February              | 1088                  | 1243                  |
+-----------------------+-----------------------+-----------------------+
| March                 | 1125                  | 1273                  |
+-----------------------+-----------------------+-----------------------+
| April                 | 1148                  | 1290                  |
+-----------------------+-----------------------+-----------------------+
| May                   | 1158                  | 1285                  |
+-----------------------+-----------------------+-----------------------+
| June                  | 1155                  | 1283                  |
+-----------------------+-----------------------+-----------------------+
| July                  | 1165                  | 1293                  |
+-----------------------+-----------------------+-----------------------+
| August                | 1185                  | 1335                  |
+-----------------------+-----------------------+-----------------------+
| September             | 1215                  | 1340                  |
+-----------------------+-----------------------+-----------------------+
| October               | 1190                  | 1308                  |
+-----------------------+-----------------------+-----------------------+
| November              | 1145                  | 1265                  |
+-----------------------+-----------------------+-----------------------+
| December              | 1143                  | 1283                  |
+-----------------------+-----------------------+-----------------------+
| January (2006)        | 1165                  | 1318                  |
+-----------------------+-----------------------+-----------------------+
| February              | 1203                  | 1345                  |
+-----------------------+-----------------------+-----------------------+
| March                 | 1180                  | 1338                  |
+-----------------------+-----------------------+-----------------------+
| April                 | 1188                  | 1333                  |
+-----------------------+-----------------------+-----------------------+
| May                   | 1263                  | 1380                  |
+-----------------------+-----------------------+-----------------------+
| June                  | 1298                  | 1435                  |
+-----------------------+-----------------------+-----------------------+
| July                  | 1295                  | 1425                  |
+-----------------------+-----------------------+-----------------------+
| August                | 1310                  | 1443                  |
+-----------------------+-----------------------+-----------------------+
| September             | 1330                  | 1473                  |
+-----------------------+-----------------------+-----------------------+
| October               | 1250                  | 1440                  |
+-----------------------+-----------------------+-----------------------+
| November              | 1305                  | 1440                  |
+-----------------------+-----------------------+-----------------------+
| December              | 1415                  | 1568                  |
+-----------------------+-----------------------+-----------------------+
| January (2007)        | 1450                  | 1585                  |
+-----------------------+-----------------------+-----------------------+
| /1 Heilongjiang,      |                       |                       |
| Jilin, Shandong,      |                       |                       |
| Henan                 |                       |                       |
+-----------------------+-----------------------+-----------------------+
| /2 Tianjin, Fujian,   |                       |                       |
| Jiangxi, Hubei        |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Source: China         |                       |                       |
| National Grain and    |                       |                       |
| Oils Information      |                       |                       |
| Center                |                       |                       |
+-----------------------+-----------------------+-----------------------+

### Table 7. Wheat Price Table

  ----------------------- ----------------------- -----------------------
  China Average                                   
  Wheat(Grade2) Wholesale                         
  Price                                           

  (Renminbi Per Metric                             
  Ton, USD 1.00 = RMB                             
  8.00)                                           

                                                   

  National Average        Producing Region/1      Consuming Region/2

  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

  February                1,438                   1,493

  March                   1,400                   1,500

  April                   1,378                   1,497

  May                     1,388                   1,493

  June                    1,393                   1,507

  July                    1,375                   1,520

  August                  1,375                   1,527

  September               1,375                   1,527

  October                 1,403                   1,513

  November                1,490                   1,547

  December                1,490                   1,667

  January(2007)           1,485                   1,660

  /1 Heilongjiang,                                 
  Shandong, Henan,Shanxi                          

  /2 Beijing,                                      
  Tianjin,Fujian                                  

  Source: China National                          
  Grain and Oils                                  
  Information Center                              
  ----------------------- ----------------------- -----------------------

### 

###   

### Table 8. Rice Price Table

+-----------------------+-----------------------+-----------------------+
| ###### China\'s Avera |                       |                       |
| ge Retail Rice Prices |                       |                       |
+-----------------------+-----------------------+-----------------------+
| (Renminbi Per Metric  |                       |                       |
| Ton, USD 1.00 = RMB   |                       |                       |
| 8.27)                 |                       |                       |
+-----------------------+-----------------------+-----------------------+
|                       | Milled Indica         | Milled Indica         |
+-----------------------+-----------------------+-----------------------+
| National Average      | Grade 1               | Grade 1               |
+-----------------------+-----------------------+-----------------------+
|                       | Producing Region/1    | Consuming Region/2    |
+-----------------------+-----------------------+-----------------------+
| January (2005)        | 2,330                 | 2,420                 |
+-----------------------+-----------------------+-----------------------+
| February              | 2,330                 | 2,410                 |
+-----------------------+-----------------------+-----------------------+
| March                 | 2,280                 | 2,430                 |
+-----------------------+-----------------------+-----------------------+
| April                 | 2,250                 | 2,320                 |
+-----------------------+-----------------------+-----------------------+
| May                   | 2,230                 | 2,260                 |
+-----------------------+-----------------------+-----------------------+
| June                  | 2,150                 | 2,240                 |
+-----------------------+-----------------------+-----------------------+
| July                  | 2,090                 | 2,130                 |
+-----------------------+-----------------------+-----------------------+
| August                | 2,120                 | 2,090                 |
+-----------------------+-----------------------+-----------------------+
| September             | 2,160                 | 2,100                 |
+-----------------------+-----------------------+-----------------------+
| October               | 2,100                 | 2,100                 |
+-----------------------+-----------------------+-----------------------+
| November              | 2,090                 | 2,090                 |
+-----------------------+-----------------------+-----------------------+
| December              | 2,110                 | 2,110                 |
+-----------------------+-----------------------+-----------------------+
| January (2006)        | 2,070                 | 2,160                 |
+-----------------------+-----------------------+-----------------------+
| February              | 2,100                 | 2,170                 |
+-----------------------+-----------------------+-----------------------+
| March                 | 2,070                 | 2,150                 |
+-----------------------+-----------------------+-----------------------+
| April                 | 2,040                 | 2,130                 |
+-----------------------+-----------------------+-----------------------+
| May                   | 2,040                 | 2,120                 |
+-----------------------+-----------------------+-----------------------+
| June                  | 2,030                 | 2,130                 |
+-----------------------+-----------------------+-----------------------+
| July                  | 2,040                 | 2,140                 |
+-----------------------+-----------------------+-----------------------+
| August                | 2,050                 | 2,160                 |
+-----------------------+-----------------------+-----------------------+
| September             | 2,070                 | 2,170                 |
+-----------------------+-----------------------+-----------------------+
| October               | 2,090                 | 2,220                 |
+-----------------------+-----------------------+-----------------------+
| November              | 2,110                 | 2,250                 |
+-----------------------+-----------------------+-----------------------+
| December              | 2,130                 | 2,290                 |
+-----------------------+-----------------------+-----------------------+
| January               | 2,180                 | 2,320                 |
+-----------------------+-----------------------+-----------------------+
| /1Anhu                |                       |                       |
| i,Jiangxi,Hunan,Hubei |                       |                       |
+-----------------------+-----------------------+-----------------------+
| /2 Guangdong,         |                       |                       |
| Guangxi, Zhejiang,    |                       |                       |
| Fujian                |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Source: China         |                       |                       |
| National Grain and    |                       |                       |
| Oils Information      |                       |                       |
| Center                |                       |                       |
+-----------------------+-----------------------+-----------------------+

## Trade Tables

### Table 9. Corn Trade Table

  ------------------------- ----------- ----------- ----------- ----------- ------------
  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   1,535,708   20,897      782         2,658,030

  Japan                     244,123     236,322     17,919      1,748       500,112

  Malaysia                  50,300      200,376     15,750      0           266,426

  Indonesia                 0           0           0           0           0

  Korea, North              8,131       11,550      4,755       15,121      39,557

  Niger                     0           0           0           0           0

  Philippines               0           58,274      0           0           58,274

  Thailand                  0           0           0           0           0

  Bangladesh                34          0           0           0           34

  Myanmar                   0           0           0           0           0

  Others                    54,224      148,852     1,346       142         204,564

                                                                             

  Grand Total               1,457,455   2,191,082   60,667      17,793      3,726,997

  Source: China Customs                                                      

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

+-----------------+---------+--------+--------+----------+-----------+
| China Corn      |         |        |        |          |           |
| Exports by      |         |        |        |          |           |
| Destination, MY |         |        |        |          |           |
| 2006/2007       |         |        |        |          |           |
| (Metric Tons)   |         |        |        |          |           |
+-----------------+---------+--------+--------+----------+-----------+
| Country         | Oct-Dec | J      | Apr    | Jun-Sept | Total     |
|                 |         | an-Mar | il-Jun |          |           |
+-----------------+---------+--------+--------+----------+-----------+
| Korea, South    | 417,263 |        |        |          | 417,263   |
+-----------------+---------+--------+--------+----------+-----------+
| #               | 177,345 |        |        |          | 177,345   |
| ######## Japan  |         |        |        |          |           |
+-----------------+---------+--------+--------+----------+-----------+
| Malaysia        | 147,511 |        |        |          | 147,511   |
+-----------------+---------+--------+--------+----------+-----------+
| Indonesia       | 54,045  |        |        |          | 54,045    |
+-----------------+---------+--------+--------+----------+-----------+
| Korea, North    | 7,790   |        |        |          | 7,790     |
+-----------------+---------+--------+--------+----------+-----------+
| Niger           | 500     |        |        |          | 500       |
+-----------------+---------+--------+--------+----------+-----------+
| Philippines     | 3       |        |        |          | 3         |
+-----------------+---------+--------+--------+----------+-----------+
| Thailand        | 0       |        |        |          | 0         |
+-----------------+---------+--------+--------+----------+-----------+
| Bangladesh      | 0       |        |        |          | 0         |
+-----------------+---------+--------+--------+----------+-----------+
| Myanmar         | 0       |        |        |          | 0         |
+-----------------+---------+--------+--------+----------+-----------+
| Others          | 0       |        |        |          | 0         |
+-----------------+---------+--------+--------+----------+-----------+
| Grand Total     | 804,457 |        |        |          | 804,457   |
+-----------------+---------+--------+--------+----------+-----------+
| Source: China   |         |        |        |          |           |
| Customs         |         |        |        |          |           |
+-----------------+---------+--------+--------+----------+-----------+
| HS              |         |        |        |          |           |
| Codes:10        |         |        |        |          |           |
| 051000,10059000 |         |        |        |          |           |
+-----------------+---------+--------+--------+----------+-----------+

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

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

  Laos                      1,890       2,190       0           0           4,080

  Vietnam                   332         0           0           0           332

  United States             277         59          663         56,274      57,274

  Myanmar                   100         200         0           0           300

  Peru                      34          17          17          52          120

  France                    5           1           0           0           6

  Chile                     0           0           1           0           2

  Philippines               0           3           0           3           6

  Argentina                 0           0           4           8           12

  Australia                 0           0           3           3           6

  Others                    0           45          2           1           48

  Grand Total               2,639       2,515       691         56,341      62,186

  Source: China Customs                                                      

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

  -------------------- ----------- ----------- ----------- ----------- -----------
  **China Corn Imports                                                 
  by Origin, MY                                                        
  2006/2007 (Metric                                                    
  Tons)**                                                              

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

  Laos                 2,740                                           2,740

  United States        2,012                                           2,012

  Myanmar              700                                             700

  Vietnam              150                                             150

  Peru                 50                                              50

  Germany              11                                              11

  Philippines          6                                               6

  India                0                                               0

  Chile                0                                               0

  France               0                                               0

  Others               0                                               0

  Grand Total          5,670                                           5,670

  Source: China                                                        
  Customs                                                              

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

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

  (Metric Tons)                                                                     

                  2000           2001      2002      2003      2004      2005      2006

                                                                                    

  January         0              18        2,449     4         34        20        2433

  February        43             271       378       3         3         113       77

  March           42             901       3,237     7         89        138       6

  April           14             8,938     42        11        3         154       232

  May             2              2,215     23        2         41        37        184

  June            63             2,301     6         1         104       0         274

  July            79             716       2                   44        69        94

  August          3              7,384     55        4         683       321       52150

  September       80             7,156     75        14        1,062     483       4097

  October         0              312       21        0         141       339       2025

  November        60             4,328     19        54        0         217       2767

  December        0              1,569     15        20        104       2,083     877

                                                                                    

  JAN-DEC TOTAL   386            36,109    6,322     120       2,308     3,975     65216

                                                                                    

                  (00/01)        (01/02)   (02/03)   (03/04)   (04/05)   (05/06)   (06/07)

  OCT-SEP MY      29,960         12,476    101       2,137     1,581     62,186    \* 5,669
  TOTAL                                                                            

  \* year to date                                                                   

  HS Code:                                                                          
  1005.1000,                                                                       
  1005.9000                                                                        

  Source: PRC                                                                       
  Customs                                                                          
  --------------- --------- ---- --------- --------- --------- --------- --------- ---------

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

  (Metric Tons)                                                                  

                  2001        2002         2003         2004        2005        2006

                                                                                 

  January         607,625     229,842      570,290      574,731     485,419     413,848

  February        745,158     770,204      1,765,212    443,422     119,673     1,005,517

  March           938,043     1,100,590    1,596,104    16,068      1,103,745   771,717

  April           251,214     855,122      551,026      72,177      529,075     40,086

  May             469,940     271,409      392,106      358,111     765,548     16,658

  June            124,939     257,892      1,818,844    165,090     1,920,091   3,923

  July            505,799     1,034,190    1,446,253    157,186     1,092,704   5,508

  August          345,695     1,652,001    1,182,624    55,373      594,601     5,487

  September       547,941     977,675      1,396,462    40,614      543,503     6,798

  October         327,458     1,268,340    1,531,617    48,572      400,797     73,467

  November        471,514     1,349,379    858,522      43,284      467,947     261,589

  December        662,658     1,906,864    3,280,392    343,533     588,711     469,401

                                                                                 

  JAN-DEC TOTAL   5,997,984   11,673,508   16,389,452   2,318,161   8,611,815   3,073,999

                  (01/02)     (02/03)      (03/04)      (04/05)     (05/06)     (06/07)

  OCT-SEP MY      8,610,555   15,243,504   7,553,303    7,589,748   3,726,997   \* 804,457
  TOTAL                                                                         

  \* year to date                                                                

  HS Code:                                                                       
  1005.1000,                                                                    
  1005.9000                                                                     
  --------------- ----------- ------------ ------------ ----------- ----------- -----------

### Table 10. Wheat Trade Table

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

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

  Australia                                                               89          128         99          33          349

  United States                                                           106         142         42          90          380

  Canada                                                                  245         49          3           54          351

  Korea, South                                                            2           3           1           2           8

  Italy                                                                   1           1           1           1           3

  Vietnam                                                                 0           0           0           0           1

  Thailand                                                                0           1           1           0           2

  Japan                                                                   3           3           2           3           12

  Indonesia                                                               0           0           0           0           1

  Hong Kong                                                               0           0           0           0           1

  Others                                                                  2           2           1           1           5

  Grand Total                                                             450         328         150         185         1,113

  Source: China Customs                                                                                                    

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

  ----------------------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
  **China Wheat Imports by Origin, MY 2006/2007 (1,000 Metric Tons) **                                                    

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

  Australia                                                               69          106                                 176

  United States                                                           51          8                                   60

  Canada                                                                  37          0                                   38

  Korea, South                                                            2           2                                   3

  Italy                                                                   1           1                                   2

  Vietnam                                                                 1           1                                   2

  Thailand                                                                0           1                                   1

  Japan                                                                   3           3                                   6

  Indonesia                                                               0           0                                   0

  Hong Kong                                                               0           0                                   0

  Others                                                                  1           1                                   1

  Grand Total                                                             166         124                                 290

  Source: China Customs                                                                                                    

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

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

  (1,000 Metric Tons)                                                          

                          2001      2002      2003      2004       2005       2,006

                                                                               

  January                 16        172       40        42         794        48

  February                57        27        4         105        452        4

  March                   28        16        54        120        664        98

  April                   84        156       46        439        321        72

  May                     7         38        31        789        242        62

  June                    8         57        5         1,236      303        51

  July                    34        50        5         748        174        50

  August                  18        17        47        654        190        49

  September               71        64        112       859        86         67

  October                 26        40        16        1009       163        76

  November                201       17        34        640        93         33

  December                222       7         79        628        72         15

                                                                               

  JAN-DEC TOTAL           772       661       473       7,269      3,555      625

                                                                               

                          (01/02)   (02/03)   (03/04)   (04/05)    (05/06)    (06/07)

  JUL-JUN MY TOTAL        1,038     375       3,024     7,314      1,113      \* 290

  \* year to date                                                              

  Source: PRC Customs                                                          

  HS Code: 1001.1000,                                                         
  1001.9010, 1001.9090,                                                       
  1101.0000, 1902.1100,                                                       
  1902.1900,                                                                  
  1902.3030, 1902.3090,                                                       
  and 1902.4000                                                               
  ----------------------- --------- --------- --------- ---------- ---------- ----------

  ----------------------------------------------------------------------- ----------- --------- --------- ----------- ---------
  **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        47        231         426

  Hong Kong                                                               35          35        32        35          137

  Korea, North                                                            40          35        27        34          136

  Indonesia                                                               14          9         10        21          54

  Korea, South                                                            10          12        11        17          50

  Thailand                                                                10          6         4         13          33

  Vietnam                                                                 11          1         0         20          32

  Mongolia                                                                1           2         2         11          17

  Japan                                                                   2           3         3         3           11

  Bangladesh                                                              0           0         0         0           0

  Others                                                                  22          25        23        25          94

  Grand Total                                                             220         202       158       409         990

  Source: China Customs                                                                                                

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

  ----------------------------------------------------------------------- ----------- --------- --------- ----------- ---------
  **China Wheat Exports by Destination, MY 2006/2007 (1,000 Metric                                                    
  Tons)**                                                                                                             

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

  Korea, South                                                            135         286                             422

  Vietnam                                                                 8           105                             112

  Philippines                                                             159         85                              243

  Indonesia                                                               9           67                              76

  Korea, North                                                            35          35                              71

  Hong Kong                                                               34          35                              69

  Bangladesh                                                              0           26                              26

  Thailand                                                                14          9                               23

  Japan                                                                   3           8                               10

  Mongolia                                                                3           5                               9

  Others                                                                  24          31                              54

  Grand Total                                                             423         692                             1,115

  Source: China Customs                                                                                                

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

  ---------------------- --------- --------- --------- ---------- ---------- ----------
  **CHINA\'S WHEAT                                                           
  EXPORTS BY MONTH                                                           
  (1,000 Metric Tons**)                                                      

                         2001      2002      2003      2004       2005       2,006

                                                                              

  January                24        56        86        94         41         61

  February               32        173       133       164        38         52

  March                  41        71        166       105        52         45

  April                  34        107       104       127        42         203

  May                    66        98        308       169        80         143

  June                   81        177       191       103        80         63

  July                   106       101       232       63         103        118

  August                 113       114       240       95         45         125

  September              135       87        291       52         72         180

  October                57        120       422       106        40         67

  November               115       41        195       83         47         351

  December               125       85        417       62         115        273

                                                                              

  JAN-DEC TOTAL          929       1,230     2,785     1,223      755        1,681

                                                                              

                         (01/02)   (02/03)   (03/04)   (04/05)    (05/06)    (06/07)

  JUL-JUN MY TOTAL       1,333     1,536     2,559     793        989        \*1,114

  \* year to date                                                             

  Source: PRC Customs                                                         

  HS Code: 1001.1000,                                                        
  1001.9010, 1001.9090,                                                      
  1101.0000, 1902.1100,                                                      
  1902.1900,                                                                 
  1902.3030,1902.3090,                                                       
  and 1902.4000                                                              
  ---------------------- --------- --------- --------- ---------- ---------- ----------

### Table 11. Rice Trade Table

+----------+-----------+----------+-----------+----------+-----------+
| **China  |           |          |           |          |           |
| Rice     |           |          |           |          |           |
| Imports  |           |          |           |          |           |
| by       |           |          |           |          |           |
| Origin   |           |          |           |          |           |
| MY       |           |          |           |          |           |
| 2        |           |          |           |          |           |
| 005/2006 |           |          |           |          |           |
| (Metric  |           |          |           |          |           |
| Tons)**  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Country  | Jan-Mar   | A        | Jun-Sept  | Sep-Dec  | Total     |
|          |           | pril-Jun |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Thailand | 227,232   | 122,021  | 139,767   | 189,693  | 678,712   |
+----------+-----------+----------+-----------+----------+-----------+
| Laos     | 800       | 100      | 400       | 3,025    | 4,325     |
+----------+-----------+----------+-----------+----------+-----------+
| Vietnam  | 7,457     | 15,255   | 10,928    | 1,910    | 35,550    |
+----------+-----------+----------+-----------+----------+-----------+
| Pakistan | 23        | 0        | 0         | 103      | 126       |
+----------+-----------+----------+-----------+----------+-----------+
| Myanmar  | 140       | 0        | 0         | 100      | 240       |
+----------+-----------+----------+-----------+----------+-----------+
| India    | 0         | 0        | 21        | 16       | 37        |
+----------+-----------+----------+-----------+----------+-----------+
| United   | 0         | 0        | 0         | 1        | 2         |
| States   |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Taiwan   | 1         | 0        | 1         | 1        | 3         |
+----------+-----------+----------+-----------+----------+-----------+
| Italy    | 0         | 0        | 0         | 0        | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Uruguay  | 0         | 2        | 14        | 0        | 16        |
+----------+-----------+----------+-----------+----------+-----------+
| Grand    | 235,652   | 137,379  | 151,130   | 194,849  | 719,010   |
| Total    |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Source:  |           |          |           |          |           |
| China    |           |          |           |          |           |
| Customs  |           |          |           |          |           |
|          |           |          |           |          |           |
|          |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| HS       |           |          |           |          |           |
| Codes:   |           |          |           |          |           |
| 1006101  |           |          |           |          |           |
| 1,100610 |           |          |           |          |           |
| 19,10061 |           |          |           |          |           |
| 091,1006 |           |          |           |          |           |
| 1099,100 |           |          |           |          |           |
| 62010,,1 |           |          |           |          |           |
| 0062090  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| 1006     |           |          |           |          |           |
| 3010,100 |           |          |           |          |           |
| 63090,10 |           |          |           |          |           |
| 064010,1 |           |          |           |          |           |
| 0064090  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+

  ------------------ ----------- ----------- ----------- ----------- -----------
  **China Rice                                                       
  Exports by                                                         
  Destination MY                                                     
  2005/2006(Metric                                                   
  Tons)jn**                                                          

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

  Cote d\'lvoire     20,200      29,542      44,571      121,467     215,780

  Liberia            42,726      21,779      16,503      88,566      169,574

  Puerto Rico (U.S.) 25,000      24,134      25,510      26,630      101,274

  Benin              0           0           0           23,000      23,000

  Russia             50,294      21,825      54,775      21,604      148,498

  Korea, North       6,380       3,866       12,943      15,291      38,479

  Japan              34,344      14,695      17,551      13,327      79,918

  Mozambique         0           0           0           13,200      13,200

  Philippines        120         0           12,700      12,301      25,121

  Vietnam            652         1,141       0           8,515       10,307

  Others             122,277     184,690     58,885      45,895      411,747

  Grand Total        301,993     301,672     243,438     389,796     1,236,899

  Source: China                                                       
  Customs                                                            

  HS Codes:                                                          
  10061011,                                                          
  10061019,                                                          
  10061091,                                                          
  10061099,                                                          
  10062010,                                                          
  10062090,                                                          
  10063010,                                                          
  10063090,                                                          
  10064010, 10064090                                                 
  ------------------ ----------- ----------- ----------- ----------- -----------

  ---------------------- ---------- ---------- ---------- ---------- ---------- ----------
  **CHINA\'S MONTHLY                                                            
  RICE IMPORTS**                                                                

  (Metric Tons, Milled                                                           
  Basis)                                                                        

                         2001       2002       2003       2004       2005       2,006

                                                                                 

  January                45,834     14,139     98,410     73,217     68,586     106,306

  February               19,676     520        16,494     42,906     24,147     52,320

  March                  18,482     5,311      21,073     39,703     38,600     77,026

  April                  11,452     6,100      24,334     90,010     43,443     61,766

  May                    6,360      37,890     9,134      64,139     20,078     31,455

  June                   10,658     38,864     8,298      65,197     28,007     44,157

  July                   14,645     28,455     4,140      77,082     26,822     41,202

  August                 17,517     10,420     9,304      32,884     31,411     31,025

  September              23,579     19,040     2,420      62,978     40,224     78,904

  October                17,323     4,575      1,564      67,399     38,483     52,811

  November               23,970     16,389     5,608      55,694     50,584     45,570

  December               75,795     56,165     57,791     90,501     103,581    96,468

                                                                                 

  TOTAL                  285,290    237,868    258,570    761,710    513,966    719,010

                                                                                 

  HS Codes: 1006.1011,                                                          
  1006.1019, 1006.1091,                                                         
  1006.1099, 1006.2010,                                                         
  1006.2090,1006.3010,                                                          
  1006.3090, 1006.4010,                                                         
  1006.4090                                                                     

  Source: PRC Customs                                                            
  ---------------------- ---------- ---------- ---------- ---------- ---------- ----------

+---------+---------+---------+---------+---------+---------+---------+
| **C     |         |         |         |         |         |         |
| HINA\'S |         |         |         |         |         |         |
| MONTHLY |         |         |         |         |         |         |
| RICE    |         |         |         |         |         |         |
| EXP     |         |         |         |         |         |         |
| ORTS**  |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| (Metric |         |         |         |         |         |         |
| Tons,   |         |         |         |         |         |         |
| Milled  |         |         |         |         |         |         |
| Basis)  |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
|         | 2001    | 2002    | 2003    | 2004    | 2005    | 2006    |
+---------+---------+---------+---------+---------+---------+---------+
|         |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| January | 118,568 | 113,566 | 131,654 | 211,346 | 73,325  | 132,225 |
+---------+---------+---------+---------+---------+---------+---------+
| F       | 118,544 | 128,683 | 308,722 | 258,362 | 92,508  | 103,195 |
| ebruary |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| March   | 130,057 | 112,122 | 124,402 | 231,601 | 35,508  | 66,573  |
+---------+---------+---------+---------+---------+---------+---------+
| April   | 225,259 | 85,502  | 129,579 | 23,229  | 36,104  | 107,292 |
+---------+---------+---------+---------+---------+---------+---------+
| May     | 115,528 | 62,387  | 135,023 | 4,522   | 80,091  | 101,494 |
+---------+---------+---------+---------+---------+---------+---------+
| June    | 199,023 | 153,893 | 314,393 | 10,127  | 84,496  | 92,886  |
+---------+---------+---------+---------+---------+---------+---------+
| July    | 176,445 | 121,934 | 248,894 | 16,483  | 59,461  | 79,838  |
+---------+---------+---------+---------+---------+---------+---------+
| August  | 111,027 | 242,846 | 233,489 | 6,597   | 41,595  | 88,380  |
+---------+---------+---------+---------+---------+---------+---------+
| Se      | 138,345 | 290,741 | 254,628 | 14,844  | 29,428  | 75,221  |
| ptember |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| October | 114,068 | 203,786 | 201,805 | 22,781  | 28,138  | 108,215 |
+---------+---------+---------+---------+---------+---------+---------+
| N       | 150,179 | 135,495 | 294,212 | 25,890  | 45,042  | 114,142 |
| ovember |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| D       | 265,454 | 332,127 | 233,397 | 70,235  | 66,109  | 167,439 |
| ecember |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
|         |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| TOTAL   | 1,      | 1,      | 2,      | 896,017 | 671,804 | 1,      |
|         | 862,497 | 983,082 | 610,198 |         |         | 236,899 |
+---------+---------+---------+---------+---------+---------+---------+
| HS      |         |         |         |         |         |         |
| Codes:  |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.1011, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.1019, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.1091, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.1099, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.2010, |         |         |         |         |         |         |
| 10      |         |         |         |         |         |         |
| 06.2090 |         |         |         |         |         |         |
|         |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.3010, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.3090, |         |         |         |         |         |         |
| 100     |         |         |         |         |         |         |
| 6.4010, |         |         |         |         |         |         |
| 1006    |         |         |         |         |         |         |
| .4090   |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| Source: |         |         |         |         |         |         |
| PRC     |         |         |         |         |         |         |
| C       |         |         |         |         |         |         |
| ustoms  |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+

### Table 12. Barley Trade Table 

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

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

  Australia                 155,088     459,787     464,136     461,633     1,540,644

  Canada                    144,242     235,636     107,616     32,946      520,439

  Germany                   0           0           0           0           0

  Japan                     0           0           0           0           0

  Lebanon                   0           0           0           0           0

  China                                 0           0           0           0

  Taiwan                    0           0           0           0           0

  Belgium                   0           0           0           0           0

  Denmark                   0           0           0           0           0

  United Kingdom            0           0           0           0           0

  Others                    140,976     14,790      0           0           155,766

  Grand Total               440,305     710,212     571,752     494,579     2,216,848

  Source: China Customs                                                      

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

+----------+-----------+----------+-----------+----------+-----------+
| **China  |           |          |           |          |           |
| Barley   |           |          |           |          |           |
| Imports  |           |          |           |          |           |
| by by    |           |          |           |          |           |
| Origin,  |           |          |           |          |           |
| MY       |           |          |           |          |           |
| 2        |           |          |           |          |           |
| 006/2007 |           |          |           |          |           |
| (Metric  |           |          |           |          |           |
| Tons)**  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Country  | Oct-Dec   | Jan-Mar  | April-Jun | Jun-Sept | Total     |
+----------+-----------+----------+-----------+----------+-----------+
| A        | 287,436   |          |           |          | 287,436   |
| ustralia |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Canada   | 84,094    |          |           |          | 84,094    |
+----------+-----------+----------+-----------+----------+-----------+
| Germany  | 1         |          |           |          | 1         |
+----------+-----------+----------+-----------+----------+-----------+
| Japan    | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Lebanon  | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| China    | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Taiwan   | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Belgium  | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Denmark  | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| United   | 0         |          |           |          | 0         |
| Kingdom  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Others   | 0         |          |           |          | 0         |
+----------+-----------+----------+-----------+----------+-----------+
| Grand    | 371,530   |          |           |          | 371,530   |
| Total    |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| Source:  |           |          |           |          |           |
| China    |           |          |           |          |           |
| Customs  |           |          |           |          |           |
|          |           |          |           |          |           |
|          |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+
| HS       |           |          |           |          |           |
| Codes:10 |           |          |           |          |           |
| 030010,1 |           |          |           |          |           |
| 0030090  |           |          |           |          |           |
+----------+-----------+----------+-----------+----------+-----------+

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

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

  Korea, South          1,062     0          371         1,855      3,287

  United States         0         0          7           7          15

  Taiwan                0         0          0           0          0

  Vietnam               0         0          0           0          0

  Belgium               0         0          0           0          0

  Thailand              0         0          0           0          0

  Russia                0         0          0           0          0

  Canada                0         0          0           0          0

  Australia             0         0          3           0          3

  Bahrain               0         0          1           0          1

  Others                0         0          3           0          3

  Grand Total           1,063     0          385         1,862      3,310

  Source: China Customs                                              

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

  --------------------- --------- ---------- ----------- ---------- -----------
  China Barley Exports                                              
  by Destination, MY                                                
  2006/2007 (Metric                                                 
  Tons)                                                             

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

  Korea, South          3,290                                       3,290

  United States         12                                          12

  Thailand              1                                           1

  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           3,304                                       3,304
  --------------------- --------- ---------- ----------- ---------- -----------

### Table 13. Sorghum Trade Table 

+---------------+-------------+--------+-----+------+----------------+
| China Sorghum |             |        |     |      |                |
| Imports by    |             |        |     |      |                |
| Origin, MY    |             |        |     |      |                |
| 200           |             |        |     |      |                |
| 5/2006(Metric |             |        |     |      |                |
| Tons)         |             |        |     |      |                |
+---------------+-------------+--------+-----+------+----------------+
| Country       | Oct-Dec     | J      | Apr | Jun- | Total          |
|               |             | an-Mar | il- | Sept |                |
|               |             |        | Jun |      |                |
+---------------+-------------+--------+-----+------+----------------+
| Myanmar       | 2,054       | 2,396  | 772 | 3    | 8,897          |
|               |             |        |     | ,675 |                |
+---------------+-------------+--------+-----+------+----------------+
| India         | 2,054       | 2,396  | 772 | 3    | 8,897          |
|               |             |        |     | ,675 |                |
+---------------+-------------+--------+-----+------+----------------+
| 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   | 0    | 0              |
+---------------+-------------+--------+-----+------+----------------+
| Grand Total   | 2,054       | 2,396  | 772 | 3    | 8,897          |
|               |             |        |     | ,675 |                |
+---------------+-------------+--------+-----+------+----------------+
| Source: China |             |        |     |      |                |
| Customs       |             |        |     |      |                |
|               |             |        |     |      |                |
|               |             |        |     |      |                |
+---------------+-------------+--------+-----+------+----------------+
| HS            |             |        |     |      |                |
| Codes:100     |             |        |     |      |                |
| 70010,1007009 |             |        |     |      |                |
+---------------+-------------+--------+-----+------+----------------+

  -------------------------- -------------- --------- ----------- ---------- -----------------
  **China Sorghum Imports by                                                 
  Origin, MY                                                                 
  2006/2007(Metric Tons)**                                                   

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

  Myanmar                    2,188                                           2,188

  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                2,188                                           2,188

  Source: China Customs                                                       

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

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

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

  Taiwan               6,457        6,741     5,595          1,036      19,829

  Japan                92           210       82             134        517

  Korea, South         1,528        1,327     699            464        4,018

  Philippines          0            0         0              0          0

  Singapore            42           84        195            236        557

  Belgium              0            0         0              0          0

  Bahrain              0            0         0              0          0

  Netherlands          0            0         144            191        334

  Thailand             0            21        21             21         63

  Saudi Arabia         0            22        0              0          22

  Others               33           105       155            98         391

  Grand Total          8,152        8,510     6,890          2,179      25,731

  Source: China                                                          
  Customs                                                               

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

  ------------------- ------------ --------- -------------- ---------- ---------
  **China Sorghum                                                      
  Export by                                                            
  Destination, MY                                                      
  2006/2007(Metric                                                     
  Tons)**                                                              

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

  Taiwan              6,152                                            6,152

  Japan               3,212                                            3,212

  Korea, South        1,650                                            1,650

  Philippines         301                                              301

  Singapore           171                                              171

  Belgium             71                                               71

  Bahrain             58                                               58

  Netherlands         48                                               48

  Thailand            42                                               42

  Saudi Arabia        24                                               24

  Others              17                                               17

  Grand Total         11,747                                           11,747

  Source: China                                                         
  Customs                                                              

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

[^1]: ^\*^ Post has found that due to problems with survey and reporting
    methodology, certain National Bureau of Statistics data, including
    grain yield is not consistent with Post's intelligence. As such, NSB
    yield data is included in the following table but not used as the
    basis of production estimates.