Others News
- Stricter controls on corn deep processing
Date: 25-Sep-2007 Sources: (Shenzhen Daily)
THE government has decided to list corn deep processing as a restrictive type of industry for foreign investment, and has temporarily forbidden foreign investment in bio-liquid fuel production projects and mergers, acquisitions and reorganizations of domestic ethanol production enterprises in the experimental period.
According to the Guiding Opinion on Promoting Healthy Development of Corn Deep-processing Industry issued by the National Development and Reform Commission (NDRC), China's top economic planner, China will implement strict industry access standards and a verification system for corn deep-processing projects, requiring all new projects or expansion projects to be verified by the NDRC. No new corn deep-processing projects will be verified until 2010.
It also asks those projects that have been put on record but haven't started construction yet, to stop construction.
In recent years, the accumulative production capacity of corn deep-processing projects newly launched, expanded or to be built in China, has greatly outstripped the country's corn output, resulting in a decrease in the corn supply for nationwide transfer and influencing the normal development of feed processing and poultry and livestock raising.
The reckless development of corn deep processing is likely to make producers in southern China rely on imports for raw materials, which will increase risk of China's food security, squat in the supply of corn for feed and further affect the normal supply of pork, poultry, egg, milk and other necessities. Moreover, the corn price hike will change the normal price parity between corn and rice, wheat, soybean and other crops, thus influencing the rationalization of the grain-growing structure, and it can also change the global corn supply and demand structure, triggering off fluctuation in international grain prices.
The Guiding Opinion proposed that the proportion of corn consumption for deep- processing projects will be controlled to within 26 percent of the total corn consumption in the 2006-2010 period.
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