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Summer Grain Harvest in China 2011

The Ministry of Agriculturle, China recently acconced that China has the grain production of 126 million tons in 2011 summer, increasing by 2.5% than 2010 and  representing the 8th consecutive year of grain production increase.

It was expected to slow down the inflation in China. China is encounting high inflation rate since 2009. Food prices increased dramatically as well, especially for pork.Monitoring data in a whole market in Beijing ( Xin tian Di, CCTV China)  showed the pork price in july 2011 is 70% higher than that in 2010. Other food prices, including cereal, vegetable, fruits all have price increase. The drought happening in the 2011 spring fueled the expectation of people on production decrease and higher price, and has actually driven the prices up. The release of this news, hopefully, can calm down people's worry, and slow down the inflation.

Of course I am happy with the result, but in the same time, given the limited land/water, climate change, natural disasters, urbanization etc, I am not so positive on the continuing increase of grain. In another words, the potential of grain production is close to its limit,--gov. and farmers are trying every efforts in increasing the production: fertilizer, pestcide, irrigation without much consideration of underground water balance, --all impose challenges for the sustainable development.

The potencial improvement, from my view, is to enhance the reserve system and management, meaning less waste, which will contribute the food security in a "green' way.

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Dear Weijing, I guess that when you speak about the reserve system and management, you refer to the large scale storage facilities and government policies for managing reserves. In your view, how are these affecting storage, waste and incentives for the intended beneficiaries in IFAD projects? Are IFAD-financed investments addressing issues of waste, storage, and contributing to food grain reserves?

Posted on 7/17/11 7:34 AM.

Dear Chase, thanks very much for your comment! Really pertinent! I do not know well whether IFAD support the storage of food, but I know that IFAD helps to build the capacity of farmers in stocking frage for feed, which is important too, as livestock provides meet and contribute to food security and nutrition.

At national level, the storage capacity is crutial. China has a very big grain reserve, estimated to be 30~35% of the annual consumption, which means 165 MT to 190 MT. The capacity building and improved managment of reserve is therefore important. The good thing is that government realized it and starts to pay more attention.

Posted on 7/18/11 5:43 AM in reply to Chase Palmeri.