China to limit corn use in non-animal-feed projects

In an effort to secure grain supplies for livestock farmers China is taking steps to limit the use of gain and edible oils as raw materials in non-animal-feed projects, according to China’s top economic planner, the National Development & Reform Commission (NDRC). Corn is used to make non-feed products ranging from ethanol to starch and sweeteners, which consume about one-third of China's corn output.

This consumption diverts supply from animal feed millers in the world's most populous country, raising the prospect of corn shortages, as consumption is expected to grow much faster than output. Within the new guidelines processors will be barred from buying more corn than their consumption level in 2009 and the government will increase value-added taxes on corn-based products. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine and International Milling Directory from Perendale Publishers