China is looking at a possible record-breaking wheat crisis as the nation heads into winter, the country’s agriculture minister said.
“Not long ago we went to the grassroots to do a survey and many farming experts and technicians told us that crop conditions this year could be the worst in history,” said Minister of Agriculture and Rural Affairs Tang Renjian. “This year’s grain production indeed faces huge difficulties.”
Aside from the rising commodities prices as the markets respond to the Russia-Ukraine war, China experienced a rare heavy rainfall last year that led to the delay of about one-third of the normal wheat acreage.
The two warring nations also account for about 29% of global wheat exports.
Chinese President Xi Jinping has been rallying the country to increase its independence with respect to wheat, saying “the rice bowls of the Chinese people must be filled with Chinese grain.” The target is to self-produce around 95% of the grain it consumes but so far has only reached 80%.
Information for this briefing was found via Nikkei Asia, Foreign Policy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
