Seed China Monthly Report(Seed China Monthly Report 202410)

In terms of market analysis, as of 10 Oct., over 54.8% of autumn grain has been harvested nationwide, 1.7% faster than the same period last year. Regions such as southwest China, the Huang-Huai-Hai region, and northwest China have already reaped over half of their crops. Chongqing was expected to produce approximately three million kg of rice seeds in 2024, sufficient for over 333,333 ha of cultivation. Supported by government subsidies and local policies, the region's hybrid rice seed production area has grown to 1,460 ha, ensuring a solid foundation for sustainable rice planting.

In terms of company and supply, on 30 Sept., Chia Tai Seeds announced its approval for listing on the NEEQ and plans to apply for the Beijing Stock Exchange in 2025 to expedite its IPO. On 21 Oct., Hubei Kangnong announced the completion of a capital reduction for its subsidiary, Ningxia Kangnong, leading to the withdrawal of its equity in the company.

In terms of trade analysis, in Jan.–Sept. 2024, China imported approximately 124.86 million tonnes of grain, rising by 8.28% YoY. In Sept. alone, 13.91 million tonnes of grain were imported, down 5.67% MoM. In Sept. 2024, China's import volume of seeds of soybean, corn and vegetables fell by 38.81% MoM to 209.03 tonnes, while the export volume increased by 0.94% MoM to 266.59 tonnes.

In terms of policy, on 25 Sept., the National Food and Strategic Reserves Administration of China released a notice on the 2024 autumn grain procurement, detailing key measures for acquiring grains like corn, rice, and soybeans. On 27 Sept., Beijing announced measures to bolster the development of key seed enterprises, aiming to boost innovation, encourage R&D investment, and enhance innovation capabilities and competitiveness of these companies.

As for variety, China's Ministry of Agriculture and Rural Affairs announced Shandong Province's approved main crop varieties for 2024, which included 30 wheat varieties and 2 corn varieties, while 13 new rice varieties were announced to have passed the preliminary review by the Crop Variety Validation Committee of Hunan Province.

The USD/CNY exchange rate used is USD1.00=CNY7.0709, sourced from the People's Bank of China on 1 Oct., 2024.