Corn Demand in China to Outstrip Supplies on Livestock Feed, Biochemicals

China’s demand for corn will grow faster than supply in the next 10 years on rising production of livestock feed and biochemicals, Grain News reported, citing Shang Qiangmin, the director of the China National Grain & Oils Information Center.

The growth of industrial use in the past few years has “exceeded imagination,” Shang told a grain conference, according to the newspaper. For the year through Sept. 30, the volume of corn used to produce starch and other biochemical products will surge by 5 million metric tons from a year ago to 50 million tons, Shang was cited as saying.

China cannot plug the corn shortage through imports because global prices are higher and the quantity is limited, so it has to curb demand, the paper said, citing Shang.

Shang’s center forecast China’s output last year at 172.5 million tons versus consumption of 172 million tons, the newspaper said. The output is regarded as too high by other researchers and the figures do not match the reality of surging prices, the paper said.

(Source: http://www.bloomberg.com/news/2011-04-29/corn-demand-in-china-to-outstrip-supplies-on-livestock-feed-biochemicals.html)