Seed China Monthly Report

In terms of market analysis, China achieved a bumper summer grain harvest in 2024, with total output reaching 149.78 million tonnes, up 2.50% from 2023. In mid-July, listed seed giants released their H1 2024 performance forecasts, with Dunhuang Seed soaring, Longping High-Tech rebounding, DBN narrowing losses, and Fengle Seed increasing losses.

In terms of company and supply, on 24 June, Zhongnongfa Seed decided to bolster its position in the agricultural seed market by acquiring an additional 34.74% stake in Huacheng Seed, following an earlier acquisition of 18.39% stake.

In terms of trade analysis, in Jan.–June 2024, China imported approximately 82.53 million tonnes of grain, rising by 4.97% YoY. In June 2024 alone, 15.04 million tonnes of grain were imported, down 3.32% MoM. In June 2024, China's import volume of seeds of soybean, corn and vegetables rose by 15.77% MoM to 639.84 tonnes, while the export volume dropped by 35.70% MoM to 193.06 tonnes.

In terms of policy, in late June, Shaanxi released its 2024 subsidy scheme to safeguard grain and oil production, with subsidies provided for applying "one spray and three preventions" technique, expanding rapeseed cultivation, promoting strip intercropping of soybean and corn, and advancing green high-yielding efficient practices for grain and oil crops production. The Office of the National Crop Variety Approval Committee has amended the national standards for the approval of wheat and cotton varieties. These revisions will be open for public comment until 31 July, 2024, and are set to be officially implemented on 1 Jan., 2025. On 30 June, the Department of Agriculture and Animal Husbandry of the Inner Mongolia Autonomous Region publicised the 2024 subsidy plan to promote high-yielding, high-quality soybean and corn varieties well-suited for local cultivation conditions.

In terms of variety, on 28 June, the Yunnan Seed Management Station released the province's seventh-batch identified non-main crop varieties for 2024, which included 17 non-main crop varieties. On 27 June, China's Ministry of Agriculture and Rural Affairs announced the approved main crop varieties of Hainan Province for 2024, composed of 11 rice varieties.

The USD/CNY exchange rate used is USD1.00=CNY7.1265, sourced from the People's Bank of China on 1 July, 2024.