Nogger's blog reports that China orders giant grains stock-take
(emphasis mine) [my comment]
Thursday, 26 March 2009
China Orders Giant Grains Stock-Take, Cat, Pigeons Etc
Do China's Wheat Reserves Really Exist?
Remember that one from this very blog a month or two back? [I do: Does China's 60 million tons of wheat reserves actually exists?]
It would seem that even the government themselves have begun to smell a rodent or two. And it's not even Year of the Rat
If they don't mind slipping the odd bit of melamine in some baby formula, then the average Chinese storekeeper isn't going to be above half-inching a few million tonnes of grain here & there now are they?
Rumours are rife of such skulduggery not to mention falsifying records to claim storage on grain that doesn't exist, Chinese Vice Premier Li Keqiang has ordered a complete stock-take of the country's entire grain inventory. [This will be interesting]
That could throw up some very interesting figures. [Agreed]
Li must have been reading Nogger's Blog himself. [Possibly]
I bet there are a few Chinese store keepers busy buying grain out of their own pockets right now to make up for one hell of a giant shortfall. If they have the money to buy them that is, if not I think I'd be packing in a serious hurry rather than waiting for the "auditors" to come knocking at my door.
I don't think that the old "when you said stock-take, I thought you said take stock, me very sorry," will wash with these boys. They take their jobs a little bit more seriously than that.
"Every warehouse must be checked. Every inventory book must be examined. And the examination must be complete and thorough. [Someone is worried] As a development country with a population of more than a billion. grain has always been the first and foremost issue to maintain peace and stability," Li said.
"Only when we know the exact amount of our grain stock, can we make wise decisions in purchasing and stocking grain [and China's decisions in purchasing and stocking grain could have BIG ramifications], and managing the grain stock to cope with the need of development and reform."
A typical Chinese audit
My reaction: For those of you who don't remember, Northern China was hit by worst drought in 50 years. So China's wheat reserves or lack thereof is a somewhat pressing issue, especially considering the catastrophic fall in 2009 global food production.
Personally, I believe the combinations of a poor 2009 crop combined with overstated wheat reserves means China will be importing quite a lot of grain in the second half of this year.