In 2016 grain deliveries from Russia to China increased impetuously

BEIJING, January, 5 (Xinhuanet) -- Although statistics for the past year 2016 in China is still unavailable , Russian farmers have reason to joy: Chinese consumer demand for grain from Russia has been raising dynamically at almost all checkpoints between two countries.
Thus, the Heihe checkpoint, which is one of the critical checkpoints on the Chinese-Russian border, set a new record in terms of volume of Russian grain imports. As of December 20, 2016, 201 thousand tons of grain were imported from Russia through this checkpoint with an increase of 21 percent on annual basis, reports the quarantine service of Heilongjiang Province (Northeast China).

The city of Dongning in the south of Heilongjiang province, which was previously called "China's first district in terms of use of foreign agricultural resources" and "the country's largest center in terms of turnover of grain imported from Russia," did not stay second after Heihe in terms of growth in Russian grain imports. In the first half of 2016, Dongning imported 30.4 thousand tons of grain from Russia, which amounted to USD 7.2 million in value terms. The growth rates were 16.4 and 20.5 percent. accordingly, as the local administration informed.
“Increase in grain imports from neighboring Russia is caused by weakening of China's grain trade policy with Russia,” said Yang Chuan, an expert for Russia of the Chinese Diplomatic Academy in his interview with Xinhua News Agency.

For many years China has been forbidding the import of wheat and some other types of grain crops from Russia because of phytosanitary problems. Rice and soybeans were imported to China, but in small volumes. The situation began to change only when two countries signed a protocol on conditions for supply of Russian grain to Chinese market at the end of 2015. Under this protocol, China allowed import of Russian grain from the regions of Siberia and the Far East.

Immediately afterwards, Russian grain producers showed enthusiasm for grain supply to China, Yang Chuan said.
According to the expert, the surge of Chinese consumer interest in Russian-made grain is also associated with the sanctions imposed by the West against Russia along with ruble devaluation, that significantly stimulated export of Russian grain to China.

China is the world's largest grain producer and a major grain importer. The grain yelds in the country amounted to more than 600 million tons, while the volume of grain imports exceeded 100 million tons, the demand for imported soybeans is especially high.

In Russia, the grain yelds exceeded 110 million tons last year. In recent years, Russia has become one of the world's largest grain exporters. The export volume reaches 30 million tons per year.

"Grain trading between China and Russia promises good prospects," said Yang Chuan.

Moderate cost and good quality have increased the attractiveness of Russian grain for Chinese importers, many of whom have decided to develop deep processing of grain imported from Russia.

For example, in March 2016, construction of facilities for the project of processing organic agricultural products in Dongning began, it will process 200,000 tons of grain crops imported from Russia per year.

While permission to export grain to Chinese market was obtained not by all regions of Russia, russian grain producers are seeking permission to export grain from the European part of Russia, including such regions as the Krasnodar Territory, as well as permission to export to China not only raw materials, but also finished products. They expect to increase volume of grain export to China to 1 million tons in a few years.

Source: russian.people.com.cn
Source photo: photogenica.ru