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One year after the release of the "Suggestions for Accelerating Development of Modern Crop Seed Industry", some progresses have been achieved, except that in the reform of R&D system.China sharply reduces 2012 subsidy for fuel ethanol, aiming to stabilize the soaring corn price.Vegetable oil players in China have raised the prices of rapeseed oil and peanut oil in early April, 2012, due to the rising cost of raw materials and fuel.China increases national purchasing price of wheat, which may weaken domestic demand for feed wheat in 2012.Henan-based Chuying Agro-Pastoral plans to invest USD47.62 million to breed Tibetan pigs in Milin County of Tibet Autonomous Region, aiming to develop the high-end pig business.CGLC, a leading state-owned grain logistic company, may be taken over by COFCO or Sinograin. Greenpeace issues a report about some tea products containing residue of banned pesticides.Sumitomo will enter Chinese rice distribution market in partnership with China's Jilin Grain Group.Beef cattle industry shows investment prospect in China because of the growth potential in beef demand, especially in middle-end and high-end markets.CAY will organize coffee enterprises to purchase the unsold coffee beans from coffee farmers in Yunnan Province. Most listed pesticide companies in China have experienced another tough year in 2011. 2011-2020 Plan for China Crop Seed Industry is estimated to put forward by June 2012.Since the infamous food safety scandal of melamine contaminated baby milk powder in 2008, the Chinese government has enacted more strict policies to ensure food safety. However, there are still some food safety scandals reported this year, indicating that the way ahead is still long. Rome was not built in a day, and it is not expected that food safety problems can be solved in a short term. On the other hand, people are paying more and more attention to food safety and demand for safe food is urgent. Let's put aside the government's policy for a moment. What should companies do in this situation or are there any opportunities for them' Many companies believe that the high-end market has great potential. They are entering the high-end market of rice, chicken, vegetables, pork, fruits, etc. and the safety is the key selling point of their products. Besides, some companies are building their own farm bases to strengthen the control for raw material. At present, many companies just purchase agricultural produces from farmers, and thus their control over the production of these agricultural produces is very weak. It is expected that it is a trend for companies to build their own farm bases or take other ways to strengthen the management of production of agricultural produces.