China’s corn processing industry entered a new era

On April 19th, the reporter learned from the “Annual Analysis and Forecast Report of China’s Corn Market and Starch Industry” that 2017 was a year when China’s corn policy reform was fully implemented. Northeast China gradually restored the advantages of corn raw materials and starch The influence of the market, coupled with the removal of restrictions on foreign investment in areas such as corn deep processing and the production of biological liquid fuels, the layout of corn starch and deep processing is shifting to the north and the competitive landscape is gradually changing. The development of the corn processing industry has entered a new era. The report was jointly issued by the China Starch Industry Association and AIG Agriculture, the National Grain and Oil Information Center, and Yongan Futures.



“The corn processing industry, as a processing industry for agricultural products, connects workers and peasants, communicates with urban and rural areas, and also works as a farmer. It is an important civilian production industry for cultivators and for the benefit of food eateries.” said Qiu Yi, President of China Starch Industry Association, 2017. China’s starch production reached 27.2 million tons, a record high, a year-on-year increase of 15.4%. Among them, corn starch production reached a record high of 25.95 million tons; the output of starch deep-processing products was 14.5 million tons, an increase of 1.86 million tons compared to 2016, and the output of the top 10 corn starch enterprises (groups) accounted for 57.2% of the national output; corn starch Demand increased by 13.8% to 25.5 million tons. However, there are industries in the industry with low concentration of processing industries, unreasonable industrial structure, lack of endogenous growth incentives, weak innovation capacity, and low development quality and efficiency, especially small-scale enterprises, low management standards, and short industrial chains. The technical equipment level is not high, the supply of high quality products is insufficient, and the quality of green brand processing products is lacking. It is expected that the new production capacity will exceed 5 million tons in 2018, and corn starch will still be in the stage of overcapacity, which will promote the merger and reorganization among enterprises.



Dr. Aimin Liu, chief research consultant of Aegre Agriculture, stated that in 2017, global corn consumption grew rapidly, and China’s corn imports reached 2.8253 million tons. It is expected that in 2018, China’s corn planting area will be difficult to continue to decline, and there will be room for growth in import volume. The total consumption will continue to increase, and the price will show an upward trend.