Agriculture Sector

Agriculture Sector

Postby winston » Thu May 08, 2008 4:44 pm

I'm still exploring who will benefit from all these subsidies eg. seeds companies, fertilizers, farm equipments, retailers, cement, building materials etc..

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China Gives `Unprecedented' Support to Farming, Minister Says

By William Bi

May 8 (Bloomberg) -- China, the world's fastest-growing major economy, is giving more support than ever to farmers to stem declining interest in agriculture and meet rising food demand, the government said.

``Unprecedented'' emphasis is being placed on farming, Minister of Agriculture Sun Zhengcai said in a question-and- answer statement posted on a government Web site. Financial and policy support, coupled with progress in technology, will help the country of 1.3 billion people to feed itself, Sun added.

China's demand for food, boosted by urbanization and higher incomes, contributed to record gains in agricultural commodities this year. Increased domestic production may boost stockpiles of grain and reduce import needs, while helping to ease inflation that reached an 11-year high in February.

``Agricultural infrastructure is still fragile,'' Sun said in the statement dated yesterday. It's becoming increasingly difficult to achieve self-sufficiency in grains and other products, he added.

China has 226 million registered rural residents working in urban centers, buying food instead of growing it, the minister said. In the past 10 years, city dwellers' food spending rose 80 percent, stoking demand for meat and feed grains, he said.

Damage from natural disasters, higher farming costs, declining profits and lack of transport capacity for grain are some of the immediate concerns, Sun said.

Rising Consumption

In the long run, consumption of grain will rise because of increased demand for food, animal feed and industrial usage, as well as population growth, Sun said. China had a net gain of 90 million people in the past 10 years, he said.

Crop output is restricted by availability of land and water, slower gains in yields and low returns on farming, Sun said.

Spending to support agriculture this year gained 85 percent from a year ago to 95 billion yuan ($13.6 billion), Sun said. Grain output can stabilize at 500 million metric tons, he added.

While the world faces a possible food crisis, China has seen only ``reasonable'' gains in agricultural product prices, Sun said. Food stockpiles are twice the world average, and include about 40 million to 50 million tons of rice, he said.

``We have food in our hands, so no stress in our hearts.''
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Agriculture - General News

Postby winston » Fri May 09, 2008 12:24 pm

UPDATE 1-China caps prices for fertiliser, ingredients-NDRC
Thu May 8, 2008 10:03am EDT

BEIJING, May 8 (Reuters) - China's central planner warned fertiliser companies on Thursday not to raise prices of important ingredients and set a maximum range for mark-ups on imported fertiliser, amid concerns about rising prices.

Soaring oil prices helped to boost fertiliser prices both internationally and in China, leading planners to worry that farmers might stint on fertiliser and stunt the grains harvest.

"Right now spring planting is under way across China, so in order to curb inappropriate price gains, protect farmers' profits and promote agricultural productivity, we are strengthening control over potassium chloride and compound fertiliser prices," the National Development and Reform Commission said on its website on Thursday.

Importers Sinochem and Sinoagri are only allowed to mark up prices to domestic fertiliser producers by 5 percent, or to trading companies by 3 percent. Prices at the point of sale could only be marked up 7 percent compared with the producers' price, the NDRC said.

It added that it would set the import price for overseas shipments delivered to the port.

"Prices cannot rise any more, although they are allowed to fall," it said.

China last month slapped an additional 100 percentage points on the export tariff on fertiliser, to prevent producers from profiteering from soaring international prices. Its move came after Chinese importers agreed to pay triple for potash and sharply reduce volumes purchased under term contracts.

Sinofert Holdings Ltd (0297.HK: Quote, Profile, Research), the Sinochem unit that is China's largest distributor of imported fertilisers, expects a shortage of up to one-quarter of China's annual demand of 11 million to 12 million tonnes of potash, its vice president said this week.

Agricultural officials and economists have written that soaring prices, especially for agricultural imports such as fertilisers and diesel, could reduce farmers' willingness to grow crops or stimulate further food inflation.

An official from the State Administration of Grain denied on Thursday that the official figure of grain reserves was inflated, saying that storage capacity outstripped output, so it was natural that China would have some empty granaries.

"The current reserve figure is true and reliable. There is no reason to believe otherwise from the information we have now," Zeng Liying, deputy director of the administration, told the official Xinhua news agency.

Lower grains production would raise the cost of feed, extending a rise in meat prices that drove headline inflation last year.

"Minimum rice prices have only risen by 10 percent, but fertiliser prices are up 30 to 40 percent,"
said Liao Xiyuan, researcher with China National Rice Research Institute.

China is targeting a grains harvest of more than 500 million tonnes this year, as it seeks a fifth consecutive year of rising harvests, the Ministry of Agriculture said this week.
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Re: Agriculture Sector

Postby winston » Wed Aug 06, 2008 10:46 pm

- Goldman Sachs, a United States-based private equity investment firm, recently acquired full control of more than 10 poultry farms on the mainland for as much as US$300 million, establishing a presence in the mainland livestock industry, according to a mainland media report yesterday.
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Re: Agriculture Sector

Postby kennynah » Wed Aug 06, 2008 11:05 pm

wah liao....@ ~usd10million....

how come they never come to our yio chu kang....pig farm...?
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Re: Agriculture Sector

Postby blid2def » Wed Aug 06, 2008 11:09 pm

Then ask them to send the Ma Ling brand luncheon meat here! KNN, so many months liao, still no stock!
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Re: Agriculture Sector

Postby kennynah » Wed Aug 06, 2008 11:17 pm

eh...i saw the MaLing LC meat at sheng shiong recently...but wah liao...the price shot up so much..

i remember last time, one normal size can (now they have mini cans..), cost ~<S$2...that day i saw....>$3....inflation man....

and i just love a thick thick slice of LC meat...pan fried until almost chow tar...crispy on the outside...soft on the inside...and fold a bread over it...and makan.... shiok man...simple taste i have...
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Re: Agriculture Sector

Postby winston » Thu Aug 07, 2008 10:23 pm

IF YOU LISTENED TO US IN APRIL, YOU SAVED A LOT OF MONEY by Brian Hunt

The "stupid" market in fertilizer stocks is getting "less stupid."


Back in April, we warned you things had gotten crazy in fertilizer stocks. Popular names like Potash, Agrium, and Mosaic had doubled in just a few months. Everyone on CNBC called them a screaming buy. Never mind they were trading for ridiculous valuations. We said anyone buying would get burned.

In the past month, the market has fulfilled our prediction. Fertilizer shares are down 20% from their highs and have shattered their uptrend. Good news leads to selling. Great news leads to more selling. And bad news? Don't ask.

Long-term, the argument for agriculture and fertilizer shares is a great one. But like all bull markets, this one ran too far too fast. News reports of runaway food prices made everyone pile into fertilizer shares without considering the value they were getting for their money. Consider the darlings of early 2008 "dead money" for a while.
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Re: Agriculture Sector

Postby LenaHuat » Thu Aug 07, 2008 11:15 pm

kennynah wrote:eh...i saw the MaLing LC meat at sheng shiong recently...but wah liao...the price shot up so much..

i remember last time, one normal size can (now they have mini cans..), cost ~<S$2...that day i saw....>$3....inflation man....

and i just love a thick thick slice of LC meat...pan fried until almost chow tar...crispy on the outside...soft on the inside...and fold a bread over it...and makan.... shiok man...simple taste i have...


Me, too luv this :D . Must be MaLing and not any other brand.
grandrake wrote:Then ask them to send the Ma Ling brand luncheon meat here! KNN, so many months liao, still no stock!

It's oredi available. This weekend must look for it at foodcourts. Gonna have this once a month.
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Re: Agriculture Sector

Postby blid2def » Fri Aug 08, 2008 12:43 am

Oh available already? Cool... what was the reason last time for the supply crunch? So zun now Olympics starting suddenly got supply again. Must be they reserve 200 tons for the Olympics...
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Re: Agriculture Sector

Postby kennynah » Fri Aug 08, 2008 1:01 am

nope...."they" were targeting you purposely..."they" know where u you live and ensured that all the ah pek grocery stores, NTUC, mini-marts, etc....could not be supplied with MaLing LCs....

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