Rising Maize Price Frowns Processing Equipment Suppliers

Since Oct. 2012, maize prices impacted by a series of factors like government policy support, maize storage, and supply, keep rising in Jilin province, the biggest commercial crop production base in China. Outbreak of month and windstorm impacted supply of maize and also accelerate expected maize price. Many maize processing equipment suppliers complain about the rising price and insufficient maize supply. Farmer suffered from month and windstorm said that they had to pay for the disease and expense.

The skyrocketing maize price improves farmers’ income and meanwhile stimulates the expansion of maize cultivated area. The indicative price regulated by government has an obvious positive impact on maize price in Jilin. Since the damage of windstorm and month, maize capacity largely reduced and also added its cost which results in a relatively higher expected price in farmers’ heart and a storage. As the damage in maize flour industry, many maize processing equipment suppliers are not optimistic.

Although maize is not a necessary part of our food, it still takes an important part on food primary process field. And numerous diets use maize as an additive to add nutrition or taste. For example, maize starch is widely used in making food, and maize is an important raw material of making alcohol. Besides maize flour industry, livestock feed and maize processing industry also felt the impact of increasing maize price.

A manager of KMEC, a famous maize processing equipment suppliers in China said although domestic market isn’t their target, sale of maize processing machines at home dropped almost 3 percent compared with the same period of last year. It is estimated that maize price in China will remains its continuous growing trend till April. 2013.