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China urgently needs to establish a food import protection system to guard against the price of food
[China Agricultural Machinery Industry News] Since last year, farmers in many areas of China have reported that food prices are too low and their income is too low. The peasants are very distressed by the constant emergence of food sales. In the media interview, even peasants found that 30,000 kilograms of corn was collected in their own yard when they were harvested a month ago. They were not willing to sell because the price was too low.
China urgently needs to establish a food import protection system to guard against the price of food
Since last year, farmers in many parts of China have reported that food prices are too low and their income is too low. The peasants are very distressed by the constant emergence of food sales. In the media interview, even peasants found that 30,000 kilograms of corn was collected in their own yard when they were harvested a month ago. They were not willing to sell because the price was too low.
Farmers’ friends reflected that “food prices are too low†and prices hurt farmers; but from the perspective of the international market, China’s food prices are still at a high level. For example, in the first few months, the price of wheat in China was 823 yuan higher than that of imported wheat of the same quality, 790 yuan per ton of rice, and 428 yuan per ton of corn.
China's grain production has been harvested year after year, and grain stocks are at historically high levels, which may have an impact on food prices. At the same time, China's grain imports have grown substantially, and low-priced imported food has hit the domestic market. Some insiders believe that imports of soybeans, edible oils and peanuts are all at a high level, and imports of corn and wheat are also rising.
Data show that in 2015 China's soybean imports were 81.694 million tons, an increase of 14.4% year-on-year. If grain was added, the grain import volume reached 130 million tons in 2015. The large amount of grain imports has caused a worry. In the case of food imports, China has lacked the right to speak and pricing for a long time. Relevant industry associations are also loose and cannot play a role, which has made China more passive in the international grain market.
It is imperative to establish a food import protection system when food prices are upside down. On this topic, researcher Hu Dinghuan of the Institute of Agricultural Economics and Development of the Chinese Academy of Agricultural Sciences made a comment:
Hu Dinghuan: The "three highs" pressure across food security has become a consensus among domestic experts. Everyone thinks this is a phenomenon that is likely to happen in the future. The “three highs†are also high domestic grain production, high domestic food stocks and large quantities of imported food. There are of course many reasons for this phenomenon. The summary is mainly due to the continuous improvement of China's grain production capacity, while the cost of grain production, land use, labor, and agricultural materials are increasing. In addition, the food prices in the international market are originally lower than ours, and the price of oil is high, the international economy is not booming, and food prices are still falling. Therefore, the gap between domestic food prices and imported food prices is very large. For example, the price of foreign soybeans is 800 to 1,000 yuan lower than that of the domestic market, and corn is also about 500 yuan per ton. Corn is a very important feed crop for us. In this market situation, it is expected that between 2015 and 2016, we may import more than 3.2 million tons of corn.
How can grain imports reduce the situation of China's grain production? At present, our country is advancing supply-side structural reforms, and has made many efforts to improve the competitiveness of agricultural products in the international market, and has formed many important ideas and policies. For example, the newly proposed agricultural land “separation of powers†​​divides land rights into ownership, contracting rights, and management rights, thereby gradually transferring land to large grain growers, expanding land area, reducing food production costs, and increasing farmers’ incomes. Food enthusiasm.
But I feel that this requires a long process. The governance of the current "three highs" phenomenon may be "the water can't save the near fire." Therefore, I believe that what needs to be considered now is how to raise the threshold for importing food, that is, how to restrict imports to protect domestic food production and protect farmers' enthusiasm.
This practice was not proposed by China. In the 1990s, Japan and South Korea did a lot of things in this regard. They used various methods to resist US products in the import of soybeans, rice, and beef. We can learn from this experience and adopt a neighboring country at a critical time. Nearly the new US President Trump came to power. One of his policy ideas is trade protectionism, which is to increase employment by developing US domestic industry, which may affect the export of China's industrial products to the United States. Therefore, it is necessary to raise the threshold of imports to protect domestic agriculture, increase employment opportunities in agriculture, and transfer part of the population from industry to agriculture. Of course, relevant industry associations should also play a very important role in efforts to protect domestic food production and to combine all forces with the outside world.
Cheng Guoqiang, a researcher at the Development Research Center of the State Council, said that China's grain is currently facing the "three highs" pressure of high output, high imports and high inventories. On the one hand, grain production has increased by 12, while import substitution of corn and rice has disrupted the domestic market. At present, the stock of corn is over 250 million tons, which is a serious oversupply. Rice stocks are at a high of 150 million tons. Chen Xiwen, former member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and the former deputy head of the Central Rural Work Leading Group, believes that although the current total is growing, some of the gaps are getting bigger and bigger, while the other part is overcapacity. Second, the competitiveness is not enough. The lack of scientific and technological progress and the low efficiency of labor production have led to uncompetitive product prices, which is the main reason.
(Original title: It is imperative to establish an import protection system for food prices upside down)