Justine Moxham

Analyst, China Research

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The end of grain self-sufficiency

Overview

China’s grain self-sufficiency policy has worked so far – but will not do so for much longer. Reductions in acreage under cultivation and stagnating yields will ensure that production lags rising demand. In support of its grain strategy, the government has increased agricultural subsidies six-fold since 2004. These subsidies will continue to boost consumer demand in rural areas – underpinning what has become an important new investment theme in the retail and other consumer goods...

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