BEIJING, Oct 25 (Reuters) - China’s grain output is expected to surpass a record 700 million metric tons this year, a senior agriculture ministry official said on Friday, urging continued efforts to ensure stable supplies.

That is 0.7% higher than the 2023 harvest of 695.41 million tons, according to data from the National Bureau of Statistics.

Heavily dependent on imports from Brazil and the United States to feed its population of 1.4 billion, the world’s largest grain producer has stepped up investment in farm machinery and seed technology in recent years as it seeks food security.

“China’s grain output has remained stable for nine consecutive years at over 1.3 trillion jin and this year it is expected to exceed 1.4 trillion jin for the first time,” Zhang Xingwang, vice minister of agriculture and rural affairs, told a news conference in Beijing.

The volumes quoted are equivalent to 650 million tonnes and 700 million tonnes, respectively.

But soybean stocks remain dependent on imports and corn planting is still short of demand, Zhang added. "The domestic food supply and demand are in a tight balance, with no substantial changes, and efforts to ensure a stable and secure grain supply cannot be relaxed," he said.

To boost productivity, the ministry has selected and cultivated several high-oil, high-yielding soybean varieties, he said.

The ministry also plans measures on subsidies for soybean processing and stock acquisition.

Another ministry official said state-owned storage company Sinograin would increase the scale of its corn purchases, which would help boost both farmers' income and planting.

Pork prices remained stable in the fourth quarter and profit margins on hogs are expected to remain at a normal level, the official added.

China has struggled to recover from record prices for pork, beef and dairy products last year after a rapid expansion of farms amid declining consumption led to an oversupply.

Efforts to reduce herd size have paid off, with prices moderating after farmers increased culling of pigs, beef cattle and dairy cattle.

Zhang said the growth rate of dairy cow breeding has slowed.

The ministry said it will continue to monitor the pace of production, particularly for pigs, as higher productivity among breeding sows has sent more piglets to the market, which could affect prices next year.

China had about 40.62 million breeding sows as of the end of September, it added.

Source: Notícias Agrícolas