China will face a strenuous harvesting period due to energy crisis thus affecting the production of agricultural goods around the globe.
China being amongst the biggest producers in the agricultural sector of the world economy, faces power supply shortage which may slow down growth level, Provinces in china where corn and soybeans are produced are worst hit by this industrial energy crisis.
This energy crisis is raising concerns on how china will handle the production of corn, soya beans and cotton due to certain plants ordered to suspend production sections to conserve electricity. in the last year china imported a large amount of agricultural products due to shortage in the market.
Power shortage in the economy has resulted in the closing of companies in the northern region that specializes in soybean processing such as the Wilmar International Ltd.’s Yihai Kerry unit. The electricity turbulence could reduce operating rates of corn processors that produces starch and syrub
The country needs to ensure sufficient power supply to keep up with expectations for a bumper harvest. “This will affect the supply and prices of agricultural products, which is a matter of importance for the national economy and people’s livelihood,” according to Futures Daily, a state-backed media.
Companies are taking measures to ensure production continues by purchasing generators in case of prolonged power cuts, Futures Daily reported, citing traders and producers. Electricity is needed to dry the crops, an important process before storage and sale. Corn and peanut supplies may deteriorate in quality if they’re not processed in time.