CHINA (9 February)
In China mainland, the winter wheat, normally accounting for some 95 percent of total wheat output, is currently in the ground. The sown area for this season is estimated to have expanded by about 5 percent, or 1 million hectare from last year as a result of attractive prices and favourable planting conditions. Weather conditions to date have been beneficial in the major wheat producing regions.
Total cereal production in 2004 is estimated at 359 million tonnes (milled basis), up 11 percent on last year (wheat by 5.6 percent, rice 15 percent and maize 11 percent), marking the first increase in year on year production since 1998, as a result of nearly perfect weather, strong prices and a series of government incentive support policies. However, China will change its net trade position in cereals from a net exporter in 2003/04 (July/June with net export of 9.6 million tonnes) to a net importer in 2004/05 (with net import 3 million tonnes), reflecting reduced production in the last several years and very low carryover stocks.
The State Council, China’s cabinet, in its major policy document on rural affairs issued in January 2005 stated that China will continue the agricultural support policies (tax cuts, direct subsidies and subsidies for seeds and tools, minimum protective prices) this year to increase grain production and farmers’ income. Crop areas for wheat, rice and maize are forecast to continue to rise in 2005. But China is expected still to face a grain deficit and would continue to be a net grain importer in 2005/06.
GEORGIA (9 February)
Latest reports indicate that Georgia harvested about 663 000 tonnes of cereals in 2004, nearly 66 000 tonnes down on the harvest in 2003. Last year’s harvest included some 217 000 tonnes of wheat, 385 000 tonnes of maize and some 50 000 tonnes of barley. Adverse weather conditions and political developments in the country are reported to have contributed to lower than expected harvest. Georgia requires some 1.3 million tonnes of cereals per year to meet domestic requirements. Aggregate cereal import requirement is estimated at about 575 000 tonnes including some 125 000 tonnes in food aid.
WFP, under a three-year Protracted Relief and Recovery Operation (PRRO), has distributed a total of 7 500 tonnes of food to some 220 000 beneficiaries since the start of the PRRO in July 2003. The current PRRO, which is scheduled to come to an end by June 2006, comprises of relief and recovery components, mainly food distribution to vulnerable groups and Food-for-Work programmes.