Chinese canola production up, soybean production costs rise

Tag : chinese agriculture

BEIJING, CHINA  Chinese rapeseed (canola) production is forecastto reach 11.85 million tonnes for 2008, up 400,000 million tonnesfrom the previous year, which was higher than the past three years,the Chinese Ministry of Agriculture (MOA) recently said. Theincrease was attributed to an increase in the area planted, whichwas done in response to higher oilseed prices, the MOA said. Thecountry also subsidizes rapeseed production, paying farmers $21 perhectare.
A recent field survey conducted by the Dalian Commodity Exchange inChina, found that soybean production costs in the countrysHeilongjiang Province have increased sharply, driven by theincreased prices for seeds, fertilizers, pesticides, labor and landrental. The survey showed the combined production costs exceeded$587 per hectare, up 48% over 2007. Costs per tonne are expected toreach $550, up 23% over 2007.