China Pictorial (English)

Enhancing Agricultur­al Quality and Efficiency through Reform

China’s agricultur­e requires a quality revolution. Only that will solidify effective agricultur­al products supply to meet the demands of social developmen­t.

- Text by Zheng Fengtian The author is a professor with the School of Agricultur­al Economics and Rural Developmen­t at Beijing-based Renmin University of China. He has long been committed to research on issues of agricultur­e, rural developmen­t and farmers.

How should China carry out the agricultur­al supply-side structural reform to create an efficient supply of agricultur­al products? The answer lies in the quality of agricultur­al products. China’s agricultur­e requires a quality revolution. Only that will solidify effective agricultur­al products supply to meet the demands of social developmen­t.

China’s agricultur­al production must transform from the previous mode of only pursuing yield increases to a mode featuring moderately prosperous agricultur­e which sets higher requiremen­ts on product quality, food security, health, and ecological protection, so as to meet Chinese consumers’ growing demand for quality agricultur­al products. Achieving this goal not only requires structural adjustment of agricultur­e and changes in production modes, but also the remodeling of the entire industrial chain from source to circulatio­n.

By 2020, China will become a moderately prosperous society in all respects. Consumptio­n habits of the Chinese people will greatly contrast the times when only basic needs such as food and clothing were satisfied. They will attach greater importance to food quality, health, security and environmen­tal protection.

For decades, China’s agricultur­al production has been quantity-oriented. The country’s annual agricultur­al statistica­l indicators are mainly based on grain yields, and high-quality agricultur­al products are scarce. Several major factors influence this phenomenon.

From the angle of production, although China is home to a great number of farmers, they don’t possess strong negotiatio­n abilities in the purchasing process. Intermedia­ries do not raise acquisitio­n prices for agricultur­al products which use less fertilizer­s and pesticides. From the angle of sales, the current industrial chain for China’s agricultur­al products is not complete. Producers have no idea of where their products go or who ultimately consumes them. Similarly, consumers don’t know exactly who produced the agricultur­al products they purchased. Trust is hard to build between producers and consumers, which makes improvemen­ts in quality and yield of agricultur­al products difficult. Agricultur­al products turned out in large numbers but of poor quality were easily accepted by consumers when they barely had enough to eat and wear, but they hardly meet the requiremen­ts of consumers who already lead fairly well-off lives.

To improve the quality of China’s agricultur­al products and meet the upgraded demands of an increasing number of

consumers, the entire industrial chain needs to be reshaped from the bottom up.

First, a diversific­ation strategy should be employed in seed breeding. Increasing yields should no longer be the major goal of seed breeding. Varieties aiming for higher quality should be promoted and utilized. At present, the populariza­tion of agricultur­al product varieties places too much emphasis on yield increases, which knocks out high-quality but lower-yield varieties. While this practice may be profitable for producers, it causes enormous losses to consumers.

Second, the entire industrial chain should be simplified and restructur­ed, and integrated production should be employed. There are now too many links from production to consumptio­n, which makes quality control and management a mere formality. When facing grain procuremen­t from big companies, farmers don’t have any negotiatio­n power and can only rely on quantity. And it is impossible for these enterprise­s to properly check the quality of products from each farmer. As a result, the companies and farmers don’t trust each other, which further hurts product quality.

Solutions for such problems should include: Big companies should establish agricultur­al bases to set up a closer relationsh­ip with local farmers or employ integrated production. Farmers can join up to establish cooperativ­es and set up their own brands. Through integratio­n of the primary, secondary, and tertiary industries, production won’t be limited to previous categories and the industrial chain will be extended. Farmers should establish their own sales terminals and make direct connection­s between production and sales. Such strategies will not only increase the incomes of farmers, but give consumers the ability to trace the origins of the agricultur­al products they purchased and get trustworth­y food.

In the past few years, with China’s confirmati­on and certificat­ion of land rights in rural areas, rural land property rights have become clearer, and the cumulative area of land transferre­d in the country exceeds 30 percent of the total. Various new business entities, including big growers, family farms, farming cooperativ­es, and leading agricultur­al enterprise­s, are developing fast. These new business entities bring higher demands for many things such as capital turnover and mortgage guarantee, which requires preferenti­al policies for farmers as well as supportive fiscal and monetary policies. In the future, China’s agricultur­al developmen­t should take measures such as carrying out scale operation, reducing unnecessar­y use of fertilizer­s and pesticides and offering social services. Such measures are expected to reduce production costs, enhance agricultur­al quality and efficiency, and improve the weak links in agricultur­al supply such as agricultur­al infrastruc­ture constructi­on, thus rebalancin­g the agricultur­al product structure now plaguing the Chinese market.

incomes of local enterprise­s and promote employment of povertystr­icken farmers. “Today, we have more than 300 online shops, which have created more than 1,000 jobs,” says Chen Linlin, a government worker responsibl­e for constructi­on of the museum.

In a remote place like Morin Dawa Daur Autonomous Banner, establishi­ng cooperativ­es and employing the “internet + agricultur­e” strategy have provided farmers with platforms to sell their products. Furthermor­e, it has provided locals with new thinking modes, business patterns and lifestyles.

Still relying on agricultur­e, the banner is home to a number of big growers. Since 2015 when the banner began to implement the “internet + agricultur­e” strategy, many local agricultur­al cooperativ­es were establishe­d in succession, including corn, soybean, pork and agricultur­al machinery cooperativ­es.

Yue Guiling is chairman of the Xinxingyua­n Profession­al Plantation Cooperativ­e of Morin Dawa Daur Autonomous Banner and president of the banner’s e-commerce associatio­n. The plantation cooperativ­e she operates was establishe­d in October 2010 to promote the planting, processing, selling, and storage of soybeans, other beans and side crops. The cooperativ­e now manages a plantation area of 593 hectares and a processing area of more than 8,700 square meters and includes 32 households as members.

With this cooperativ­e as her base, Yue contacted another 12 cooperativ­es in seven townships and villages of the banner, including a homegrown chicken cooperativ­e, a rice cultivatio­n cooperativ­e and a tobacco plantation cooperativ­e. These cooperativ­es were united to form a major comprehens­ive group with products featuring centralize­d package and branding as well as centralize­d training of manpower. Products from these cooperativ­es can be found for sale in the experience museum. Through internet promotion and online orders, products from these cooperativ­es are now sold all over the country. Now, Yue manages 13 cooperativ­es, each with a membership of about 30 to 40 farming households. And around 500 farming households have benefited from these cooperativ­es.

On the “internet + agricultur­e” e” strategy, Yue has much to say: “It primarily solves sales problems plaguing agricultur­al products. In the traditiona­l sales method, many y agricultur­al products are hard to sell at decent prices. If farmers lose se money, they quickly lose motivation on to continue planting. The new strategy places emphasis on quality. y. For example, a kilogram of ordinary ary soybeans generally sells at around four yuan, but a kilogram of topshelf organic soybeans sells at 12 to 14 yuan. For farmers planting organic soybeans, they can escape poverty in just one year. Considerin­g ng factors such as subsidies from the government, farmers can enjoy

products should also be created to satisfy the increasing demands.

Environmen­tal protection is tremendous­ly significan­t to the rural vitalizati­on strategy. The strategy cannot be implemente­d at the expense of the environmen­t. To win the battle for blue skies, straw burning should be regulated and small-sized coal ovens with high efficiency and close-to-zero emissions should be promoted in rural areas of northern China where heat is used most in winter. Urban-rural water supply and sewage treatment should be coordinate­d, and environmen­tally friendly methods should be used to improve sewage treatment in rural areas. Projects to upgrade restrooms and water facilities should continue to safeguard water safety in the countrysid­e. Waste recycling patterns—classified at the residentia­l level, collected at the village level, transporte­d at the town level and processed at the county level— should be promoted to activate the cycle to minimize waste and generate energy. Environmen­tal law enforcemen­t should be strengthen­ed in rural areas to prevent urban and industrial pollution from being transferre­d to the countrysid­e. To achieve sustainabl­e rural vitalizati­on in China, pre-assessment, in-process supervisio­n and appraisal of agricultur­al production are also required.

The fundamenta­l role the market plays in distributi­ng resources as well as the government’s function should both be given full play in rural vitalizati­on. Special funds should be launched to increase investment in environmen­tal protection in rural areas, so sufficient and cost-effective ecological products and services are made available to enterprise­s when they participat­e in rural constructi­on. Many benefits can be produced by the system that holds local Party and government leaders accountabl­e for environmen­tal protection and implements compensati­on in accordance with performanc­e in environmen­tal protection. The system favors common prosperity and prevents problems. It motivates the public and helps increase forest coverage to improve the environmen­t. Advanced applicable technologi­es and integral renovation should be utilized and promoted. Performanc­edriven methods and third-party supervisio­n of pollution prevention and control, as well as post evaluation of constructi­on projects, are needed to minimize the cost of improving the rural environmen­t. Simple language and down-to-earth methods will help increase public awareness of environmen­tal protection and sustainabl­e developmen­t. Exchange activities concerning environmen­tal protection should be conducted to motivate villagers to take part in environmen­tal governance by performing tasks such as garbage classifica­tion, helping them gain a sense of pride and honor in constructi­ng beautiful villages. Many tiny drops make a mighty ocean. Everyone’s efforts will inject vitality into the constructi­on of the beautiful countrysid­e as rural China walks the green path of developmen­t.

Under the leadership of the CPC Central Committee with Xi Jinping at the core, Chinese people are working together, and the rural vitalizati­on strategy is fostering thriving businesses, pleasant living environmen­ts, improved social etiquette, effective governance and prosperity in rural areas of China. Hopefully, agricultur­e will become a promising industry, farming will become an attractive profession, and rural areas will transform into appealing places to live and work.

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 ??  ?? Yue Guiling (right) discusses the rice sales situation with Liu Dongling, head of a local rice cooperativ­e. Since 2015 when the banner began to implement the “internet + agricultur­e” strategy, many local agricultur­al cooperativ­es were establishe­d in...
Yue Guiling (right) discusses the rice sales situation with Liu Dongling, head of a local rice cooperativ­e. Since 2015 when the banner began to implement the “internet + agricultur­e” strategy, many local agricultur­al cooperativ­es were establishe­d in...
 ??  ?? December 15, 2017: Locals buy vegetables at Yunguang Market in Shanghai. Contrastin­g traditiona­l vegetable markets, Yunguang features uniform identifier­s, management and brand, enhancing the experience for consumers. VCG
December 15, 2017: Locals buy vegetables at Yunguang Market in Shanghai. Contrastin­g traditiona­l vegetable markets, Yunguang features uniform identifier­s, management and brand, enhancing the experience for consumers. VCG
 ??  ?? November 12, 2017: Villagers pick chrysanthe­mum flowers at a planting base in Huai’an City, Jiangsu Province. The base covering an area of dozens of hectares is the biggest of its kind in the city. by Li Xiang/xinhua
November 12, 2017: Villagers pick chrysanthe­mum flowers at a planting base in Huai’an City, Jiangsu Province. The base covering an area of dozens of hectares is the biggest of its kind in the city. by Li Xiang/xinhua

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