This is China’s third subsidy notification since its 2001 accession to the global trade body. The previous notifications were in 2010 (for calendar years 2002-2004) and 2006 (for calendar years 1999-2001).

The new data shows a dramatic increase in recent farm subsidy provision, which grew from 310 billion RMB yuan to 593 billion RMB yuan – or approximately US$85 billion – over the four year period. The growth reflects a long-term trend towards increased support for agriculture in China, all of which has been reported as green box.

According to these new figures, China made no outlays on trade-distorting subsidies in the WTO’s ‘amber’ or ‘blue’ boxes. Blue box subsidies are production-limiting measures that are considered trade-distorting by the global trade body; amber box subsidies are the most trade-distorting form of permitted support under the WTO system.

The only trade-distorting payments provided fell below the permitted ‘de minimis’ ceiling, which is equivalent to 8.5 percent of the country’s value of production under a special agreement reached when China joined the global trade body in 2001. De minimis spending is a category of trade-distorting support that is currently allowed in small amounts under WTO rules – usually up to five percent of the country’s value of production.

For the year 2008, China reported positive de minimis support for cotton, rice, corn, rapeseed, soybeans, and pork, although support for none of these products exceeded three percent of the value of production, and in most cases was far lower.

Instead, over half of the support provided was classed as ‘general services’ payments that do not distort agricultural production or trade. This category covers research, pest and disease control, extension and advisory services, and infrastructure.

One particular sub-category of general services reported represented as much as 166 billion RMB yuan in 2008, or a little over one quarter of all subsidies notified. Described as ‘other general services’, it included the operating costs of buildings and facilities, and the salaries, expenses, and pensions of agricultural agency staff.

General services subsidies for infrastructural services were also important, representing 125 billion RMB yuan or one-fifth of all spending: these covered outlays for services such as flood control engineering, draining and irrigation facilities, rural roads, and soil and water conservation.

Environmental, food security spending rises

Financial support for most measures increased over the period, with spending on environmental measures increasing by around 40 percent to reach 68 billion RMB yuan in 2008. Payments for public stockholding for food security increased by around 30 percent to reach 58 billion RMB yuan, while payments for natural disaster relief jumped five-fold to reach 55 billion RMB yuan. The subsidy increase is linked to a series of reforms that China has introduced in recent years that aim to improve farmer welfare, reduce rural-urban disparities and improve domestic demand.

However, in a notable exception to the general trend towards increased farm support, subsidies for domestic food aid fell from 99 million RMB yuan to 64 million RMB yuan over the same time.

While direct payments to farmers also nearly doubled, they still represent less than four percent of total farm support – in contrast to other WTO members such as the EU, where such payments account for a significant share of the subsidies provided to producers.

Although China is also entitled to provide agricultural input and investment subsidies under a clause providing ‘special and differential treatment’ to developing countries, Beijing reported that no such payments were made.

While in absolute terms China’s farm subsidies are now close to the levels provided by agricultural trading giants such as the US and the EU, on a per capita basis the country’s farmers continue to receive far less than their counterparts elsewhere (see Bridges Weekly, 7 September 2011 and 26 January 2011, respectively).

With the new subsidy notification, China joins other countries such as the US, Japan, and India, which have all also recently submitted new farm support data to the WTO (see Bridges Weekly, 7 September 2011 and 15 June 2011, respectively). China and India both recently came under fire from the US for not notifying their subsidies to the global trade body on a regular basis.

The forecast is lower than what the market expects, as estimates around July had already placed the volume at 6 million tons or above in the period, analysts said.

“The figure is probably closer to somewhere between 5 million and 10 million tons,” said an analyst with the influential Shanghai JC Intelligence Co. agriculture consultancy.

The CNGOIC reports also said China bought 3 million-4 million tons of corn in the first half of the year, and may import 1.5 million tons of wheat in the 2011-12 crop year.

The wheat import volume may reach 2 million-3 million tons, the JCI analyst said.

-By Chuin-Wei Yap, Dow Jones Newswires; 8610 8400 7704; chuin-wei.yap@dowjones.com.

(END) Dow Jones Newswires

October 24, 2011 23:50 ET (03:50 GMT)

Covering 300,000 square meters, the center will serve 260 million citizens in north China. The center will process 2.3 million metric tons of vegetable protein and 900,000 metric tons of cooking oil products every year.

The development project was initiated on April 28, 2009 with a total investment of 4 billion yuan ($620.2 million), 2.6 billion yuan of which was spent to build the center.

Ning Gaoning, president of COFCO, said the launch of the project in Tianjin marks a “breakthrough” for the company, as it will allow COFCO to be ranked among the world’s largest cooking oil processors.

Zeng Liying, deputy director of the State Administration of Grain said the center will help COFCO to become more competitive.

The China National Grain and Oils Information Centre (CNGOIC) also said 2011 soybean output was expected to fall 10.5 percent from last year to 13.5 million tons.

CNGOIC said last month that corn output was expected to rise to 181.5 million tons, while soybean production would fall 7.9 percent to 14 million tons.

The centre also estimated China will process 55 million tons of soybeans this year, which would represent an operation ratio of about 55 percent, down from last year’s 64.9 percent and 61.9 percent in 2009.

Because the appraisal value of the proposed transferred equity has not been ultimately confirmed, the final equity transfer price will be determined and stated clearly in the formal Equity Transfer Agreement. In accordance with the Letter of Intent, within 15 days from the signing date of this Letter of Intent, China Modern Agriculture shall pay an early security deposit of equity transfer to Jinshangjing Company with the total amount of RMB 14MM. The final Equity Transfer Agreement will be signed within 90 days from the signing date of this Letter of Intent.

The acquisition is expected to add approximately $4.5MM to the net profit for the year ending June 30, and the annual production capacity of fresh milk will be increased by about 30,000 tons.

About China Modern Agricultural Information

China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information. For more information please visit http://www.hljzhongxian.com/zx/eng_zx .

Cautionary Statement Regarding Forward Looking Information

Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our 8K/A dated March 31, 2011, and other recent filings. These filings are available at http://www.sec.gov/ . We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: China Modern Agricultural Information, Inc.

China remains one of the largest markets for Canada’s canola crop, but exports to the country have been hampered since 2009 when China placed import restrictions related to blackleg, a common fungal disease in canola. Currently, canola that tests positive for blackleg can only be delivered to crushing facilities far away from where China grows its own rapeseed crop.

“This is tremendous news for our canola producers and processors and is a testament to our strong and collaborative working relationship with China,” said Canadian agriculture minister Gerry Ritz in the news release.

“This development demonstrates that the growing Canada-China commercial relationship is benefiting Canadian farmers and their families,” added Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, in the release. “We value and welcome the continued access as China is now the world’s second-largest economy. It is important that we further develop our trading relationship with China to create opportunities for hard-working Canadians”

The announcement is part of an ongoing strategy to achieve a stable trading environment with China for Canadian canola, said the release.

“We welcome China’s commitment to work in partnership to maintain trade in canola while jointly tackling research to reduce the threat of blackleg,” said Canola Council of Canada President JoAnne Buth in the release.

During the first ten months of the 2010/11 (Aug/Jul) crop year Canada had exported 692,000 tons of canola to China, making it the fourth largest export destination, according to the most recent Canadian Grain Commission data as of the end of May. That compares with the previous year when Canada had sent 1.841 million tons of canola by the end of May.

Through the first nine months of fiscal 2011, the Company increased gross revenues 64% over the same period in 2010, reaching USD$17,201,388 for the first nine months of 2011.

About China Modern Agricultural Information

China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information. For more information please visit http://www.hljzhongxian.com/zx/eng_zx .

Cautionary Statement Regarding Forward Looking Information

Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our 8K/A dated March 31, 2011, and other recent filings. These filings are available at http://www.sec.gov/ . We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

This news release was distributed by GlobeNewswire, www.globenewswire.com

During the week June 13 – 19, meat prices rose from the previous week with pork up 4.8 percent, beef up 0.6 percent, chicken up 0.5 percent and mutton up 0.4 percent.

Prices of eight aquatic products rose 1.2 percent mostly due to higher costs for transportation in summer.

Prices of flour and rice both climbed 0.2 percent from the previous week. Egg prices gained 0.8 percent week-on-week, but the growth rate was down 0.7 percentage points.

The prices of 18 staple vegetables dropped 1.9 percent for the fourth week running due to plentiful supply.

Producer goods including minerals, construction materials and rubber gained with minerals up 0.6 percent, construction materials up 0.3 percent and rubber up 0.1 percent. Prices of chemical products, non-ferrous metals and steel fell.

Food prices have a key weighting in the calculation of the consumer price index (CPI), a major gauge of inflation, which hit a 34-month high of 5.5 percent year-on-year in May.

More than 96 percent of the wheat grown in the country’s major agricultural provinces of Henan, Shandong, Anhui, Jiangsu and Hebei was gathered by harvesting machines, a rise of half to one percentage point year-on-year, the ministry said in a statement on its website.

Around 500,000 combine harvesters were put into use across the country during the summer harvest, a rise of 30,000 units year-on-year, the statement said.

Diesel prices remained stable at 7.3 yuan ($1.12) per liter in China’s major agricultural regions during the summer harvest, the statement added.

The ministry said last week that the country will see an increase in wheat output for the eight consecutive year this year.