Reuters reported, citing a government report, that China has set higher grains and oilseeds production targets and increased its 2025 budget for storing agricultural commodities. This is to secure its long-term food security as it also grapples with a burgeoning trade war with the United States.
On March 5, China announced it would set a production target of about 700 million tonnes for 2025. This is a higher goal than its 2024 target of 650 million tonnes after a record harvest of 706.5 million tonnes last year.
According to an official report, China also raised its 2025 budget for stockpiling grain, edible oils, and other materials by 6.1% from a year ago to 131.66 billion yuan ($18.12 billion).
China, the world’s largest importer of agricultural goods for its 1.4 billion people, imported more than 157 million tonnes of grains and soybeans last year but is seeking to reduce its heavy dependence on supplies that mostly come from Brazil and the United States.
On March 4, the United States imposed an additional 10% tariff on various imported products from China, raising the overall total to 20%. China, which was engaged in a months-long trade war with the United States in 2018, countered by imposing additional tariffs of its own, including a 10% tariff on US soybeans and sorghum and a 15% tariff on US wheat and corn.
The total value of China’s agriculture imports fell 8% in 2024 to $215 billion, according to customs data, as its domestic agricultural output increased.
The report also said China will advance the construction and improve the connectivity of storage facilities for grain, cotton, sugar, meat and fertilizer.
China, which imports about 80% of the soybeans it consumes, said it will expand the coverage of full-cost and production income insurance for soybeans, a move intended to encourage farmers to plant the oilseed.
At the same time, China said it will continue efforts to lower the use of soymeal in livestock feed. For several years, using low-protein animal feed or alternative meals such as rapeseed or cotton has been explored to reduce demand for imported soybeans.
Additionally, it said China will refine its grain pricing mechanism and implement a minimum purchase price policy for rice and wheat.