China Maize Market is projected to grow at a CAGR of 3.1% during the forecast period (2020-2025). China is one of the biggest maize producers and consumers in the Asia-Pacific. Maize production in China has increased by 125% in the last two decades. Maize is the major crop in the place of rice in China. This enormous growth is a result of the rapid growth in meat consumption among the Chinese.In China, the maize crop is mostly used in animal feed for meat production. China is one of the largest animal feed producers in the world. Around 60% of the total maize production in China is utilized for animal feed production and only 10% is utilized for human food and seeds. However, the recent outbreak of African Swine fever (ASF) in pigs and coranvirus has undermined corn feed usage and hit livestock sector hardest in the region.
Key Market Trends
Increasing Demand For Corn as Animal-based Protein Sources
China's commercial feed industry plays a crucial role in supporting the growth of corn in the region. Corn which is predominantly used for animal feed has surpassed wheat and rice to become China's largest crop. China is now among the world's largest producer of livestock products and animal feed manufacturer. According to FAOSTAT statistics, In 2018 the total meat production in the country is reported to be 88.15 million tons as compared to its production of 86.77 million tons in 2016. The increase in domestic meat production has contributed to the growth of corn as animal feed in livestock production in the region. With an increase in demand for corn in the animal feed industry, the market for corn is projected to grow during the forecast period.
Favorable Government Policies Supporting the Market Growth
Corn is one of the major crops grown in China. The Chinese government has undertaken many measures to increase domestic production of corn thereby reducing its imports. China's corn support price program between 2007-2016 has brought a tremendous shift in corn cultivation in the region. Under this policy, the government provided subsidies for seed and machine purchases. It also started a national wide corn stockpiling program by collecting corn from farmers at the minimum support price. The elevated prices have enhanced farmers to grow corn and sell them to state-owned facilities. In 2016, the government revised its existing policy by replacing the state stockpiling program and support price policy to direct payment corn subsidy policy by allocating USD 4.51 billion to farmers in four provinces in northeastern China. This, in turn, has boosted the domestic corn production in the region.
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