China grain demand outstrips production
Chinese grain producers received $6.9 billion in subsidies in 2007 as Beijing attempted to meet rising demand in the country.
But, according to a report in the China Daily Friday, it was not enough. Despite producing 500 million tons of grain (the fourth straight year of growth in production), supply still fell short of demand, meaning China was required to import grain from foreign nations.
In a speech outlining the importance of the grain subsidies, China's vice-minister of agriculture Wei Chao’an said the country had to keep its grain production industry strong enough to withstand natural disasters, as well as climbing demand.
The past year has been a dry one for China, as drought has affected everything from farming to the water levels on the Yangtze River, which have dropped so low that barges using the river are taking five days longer than normal to transit between certain inland destinations, Lloyd's List reported.
China grain demand outstrips production
