China Maize Market - Growth, Trends, and Forecasts (2023 - 2028)

China Maize Market - Growth, Trends, and Forecasts (2023 - 2028)

The China Maize Market is projected to register a CAGR of 3.1% over the forecast period.

• Corn, also known as maize, is a cereal grain that is one of the most widely grown crops in the world. It is cultivated in almost every part of the world and is a major staple food. It may be in the form of sweet corn, flour corn, flint corn, or dent corn, and also it comes in many colors, viz, yellow corn, white corn, blue corn, and purple corn. Maize is widely used as fuel and fodder for animals. It constitutes fiber, vitamins, carbohydrates, protein, magnesium, potassium, and minerals. In addition to these nutrients, corn also contains anti-oxidants, including lutein and zeaxanthin, which are important for eye health. Maize lowers cholesterol levels, reduces the risk of heart diseases, prevents digestive problems, prevents anemia, and promotes human growth.
• According to the Food and Agriculture Organization (FAO), China’s maize production contributed 260.8 million metric tons in the year 2020, which increased by 272.7 million metric tons in 2021. Many maize varieties are coming up with trait resistance capabilities in farmland to mitigate pest and disease infestations. This led to good results for three high-yielding Chinese varieties – Guidan 162, Jinyu No.8, and Xianyu 335 – all sold to farmers by the center. The seeds are relatively resistant to drought conditions and are ready for harvest within 80 to 84 days.
• 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 place of rice in China. This enormous growth results from 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, and only 10% is used for human food and seeds. However, the recent outbreak of African swine fever (ASF) in pigs and coronavirus has undermined corn feed usage and hit the livestock sector hardest in the region.

• China's commercial feed industry plays a crucial role in supporting the growth of corn in the region. Corn, predominantly used for animal feed, has surpassed wheat and rice to become China's largest crop. China is now among the world's largest producers of livestock products and animal feed manufacturers.
• 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. According to the United States Department of Agriculture (USDA) report, China's 2021 chicken meat production was forecasted at 15.3 million metric tons, representing a 3% increase from the estimated 14.9 million metric tons in 2020.
• The 2021-22 feed corn and residual use forecast were 211 MMT, 15 million metric tons more than FAS China's 2020-21 estimate, as feed mills switched back to corn rations. The price difference between maize and wheat has returned to previous levels, with corn prices being 11–17 USD (70–110 RMB) per tonne less expensive than wheat in South China and NCP compared to the same time last year.
• Many feed mills across much of the country have reportedly stopped substituting wheat. Nonetheless, the wheat inventory that feed mills in the southwest and NCP regions previously purchased is still being consumed. Maize, also known as corn, is a cereal grain widely cultivated as a tall annual cereal grass bearing kernels on large ears. It has become a staple food in many parts of the world.

• Corn is one of the major crops grown in China. According to the United States Department of Agriculture (USDA) report, in 2021–2022, corn production reached 272.6 million metric tonnes, up 4.6 percent from the previous year. This increase was made possible by a 5 percent increase in planting area despite slightly lower yields due to crop damage from flooding in the Huang–Huai–Hai River in the North China Plain (NCP) region.
• This increase in output fell short of the industry's forecast, which called for an increase of 15-20 million metric tonnes that year. Total fall grain output in the major grain-producing province of Henan was 27.41 million metric tons, down by 10.8 percent. Corn production was down by 12.4 percent or 2.9 million metric tons.
• Post's fiscal year 2021-22, corn import is estimated to be 20 million metric tons, 6 million metric tons below USDA's official estimate. FAS China expects local corn prices to decline from last year's high eventually and that stock building will decline and demand will weaken as imported corn stocks eventually enter the marketplace.
• According to the ITC Trademap, the United States, Ukraine, Bulgaria, Russia, and Myanmar are the major destination for exporters of corn valued at USD 5,585,530 thousand, USD 2,348,401 thousand, USD 44,720 thousand, USD 21,271 thousand, and USD 11,130 thousand, which will escalate imports of corn in China during coming years.

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