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Quick Facts

• Population of 1.3 billion people
• Gross Domestic Product (GDP) of US$4.5 trillion, making it the second largest economy in the world
• Per capita GDP is US$3,800.
• Landmass slightly smaller than the United States

Since economic reforms began in 1979, China’s economy has grown more than tenfold. These economic changes have brought relative prosperity to millions of Chinese, and there is a large and growing middle class in the urban areas.

General Characteristics of Market & Culture

Agriculture equals 15 percent of the nation’s GDP or US $675 Billion.

• Poultry production equals 11.8 million metric tons annually.
• Pork production equals 41.6 million metric tons annually.
• Ten percent of the landmass is arable, and most of this land is in the eastern portion of the country.  Arable land is shrinking as industry develops rapidly.
• Imports from the U.S. equal 5.2 million metric tons. Imports of soybeans have dramatically increased in recent years and over the past five years China has become the largest, single-country importer of U.S. soybean.
• Corn imports from the U.S. range from 0.0 to 5.0 million metric tons.  It is anticipated that with China’s entry into the WTO, China will become a more significant import market for high quality and IP corn even though it is currently an exporter of corn.
• Wheat imports from the U.S. range form 0.0 to 750,000 thousand metric tons.  Imports of wheat are expected to increase under WTO accession because of demand for high-protein-content wheat by millers in the urban areas. Demand will be strongest for low-protein western white and high protein dark northern spring wheat. However this market may not be large.

Changes in Demand for Food

As the incomes of China’s consumers continue to rise, demand for more, higher-quality, and safer food products will continue to grow. Good producers are increasingly putting their focus on higher-margin and higher value-added products.  As a means of responding to these demands for quality and safety, the public and private sectors have developed and implemented mandatory and voluntary quality control, management, and assurances schemes. Taste and nutrition are both important traits to affluent consumers. The use of GMO crops in the food supply is not currently a major consumer issue in China.  However, the government is developing regulations to control GMO product. 

IP Products

There are changes taking place in the China market that are creating a demand for high quality and IP crops.  For example: 

• China’s more prosperous urban populations are demanding higher quality food products, thus driving food processors to improve the quality of their inputs.
• China’s food processors are seeking to increase the export of their products into foreign markets that have high governmental and consumer standards.

Regional Markets

China is not one single market but it is composed of several distinctive regional markets. While the central government establishes national policies for the development of the agricultural sector, most business is conducted at provincial and regional levels. Each region oversees its own food distribution system, and interregional trade has not been significant in the past. The major regional markets include the following:

• Northeast
• Beijing
• Central Provinces
• Sichuan Provinces
• Greater Shanghai
• Greater Guangdong Province

Diet

The Chinese diet is largely dependent on what is produced in the region they live. Dishes with rice, potatoes, cornmeal, tofu, and other grains are staples. Noodles are very common.  Dishes made with pork, beef, chicken, or fish are popular but expensive.  Fruits and vegetables are eaten in season, and dairy products are limited.

The above is a summary of the market profile. 
View the Detailed China Market Profile Here. html | pdf

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