China's pending entry
into the WTO and the rapid development of its open market system
have pushed the country's agricultural sector to seek more advanced
management methods, according to senior agricultural officials.
The so-called "industrialized management of agriculture,"
which focuses on integrating farming production, processing
and market sales, has been put at the top of the central government's
development plan for the next five years.
Vice-Premier Wen Jiabao told a national meeting in Beijing yesterday
that one advantage of adopting such management methods is to
help farmers better satisfy market demands.
China will establish a group of leading agro-enterprises to
deal with fiercer international competition after its entry
into the WTO, said Vice-Minister of Agriculture Wan Baorui.
Qualified agro-enterprises will be combined to set up leading
groups so they can be developed into major players in the international
market, said Wan.
These groups will also be encouraged to co-operate with foreign
companies in the fields of capital, technology and management.
It was announced yesterday that 151 national leading agro-enterprises
have already been set up, said Wan.
They will work under preferential policies set by the government,
including financial, banking, taxation and foreign trade support
In the 10th Five-Year Plan period (2000-05), more leading groups
with more advanced technological facilities and more economic
power will be established, said the vice-minister.
These enterprises are expected to play leading roles in agricultural
restructuring, which will benefit farmers by increasing their
More market-orientated methods, including the adoption of a
share-holding system, will be used to consolidate the strength
of the agro-enterprises.
For example, qualified enterprises will be encouraged to list
on the stock exchange in order to get more development funds,
according to Wan.
These enterprises will also be encouraged by the government
to improve their technological innovation and their ability
to compete in the marketplace.
China's individual farmers face great challenges from the open
market. But co-operation between agro-enterprises and farmers
will integrate agricultural production with the processing and
marketing sectors, and greatly improve the competitiveness of
Farmers will hold shares in enterprises and the country will
encourage the development of "agencies" as a bridge
between the two parts of the industry and protect the farmers'
rights and interests.
According to the Ministry of Agriculture, there are around 30,000
agricultural management organizations involving 39 million farmers.
(China Daily 11/08/2000)