(CN) Assisting Chinese farming to grow

[Guest guest]

China Daily

http://www1.chinadaily.com.cn/cndy/2002-12-18/98222.html

(FAN XIAOJIAN)

12/18/2002

 

To strengthen the country's agricultural competitiveness after the country's

entry into the World Trade Organization (WTO), major efforts should be

devoted to pushing forward agricultural industrialization by developing

leading agricultural enterprises.

Industrialized management is a great innovation for the country's

agricultural management system.

 

When farmers are organized by enterprises to carry out industrialized

management of agriculture on the basis of the household contract

responsibility system, they will get more comprehensive services and

agricultural resources will be better allocated.

 

Currently, the most popular forms of industrialized management of

agriculture are farmers and enterprises, or farmers, enterprises and

co-operative organizations.

 

The selection of the different farming models should be subject to whether

or not they can enhance the competitiveness of the country's agricultural

sector and agricultural enterprises because industrialized management of

agriculture aims to effectively organize small-scale farm households.

 

Industrialization can advance the strategic adjustment of the country's

agricultural structure. It will help improve the quality of agricultural

products, diversify the breeds and types of products, encourage regional

distribution of agricultural resources and promote the further processing of

products.

 

It will also help develop agricultural technology and improve farming

methods.

 

An effective way to realize agricultural modernization, agricultural

industrialization will sharpen the competitive edge of the industry in the

international market.

 

Up to now, agricultural industrialization has made some headway in China.

 

The production and management of staple agricultural products in some

regions, like wheat, corn, soybean, cotton and sugar cane, has been

industrialized and some leading agricultural enterprises with strong

competitiveness have emerged. Also, farmers and enterprises have become more

quality conscious.

 

They have also invested heavily in technological innovation. Some

enterprises have set up their own research and development (R & D) centres.

 

Industrial associations have been created in some regions, playing an

important role in disciplining market order, co-ordinating prices,

arbitrating disputes over trade conflicts and probing industrial damage.

 

However, after it became a full WTO member last year, the country's

agricultural sector met tough challenges as enterprises had to directly

participate in fierce international competition.

 

Currently, domestic enterprises still lag behind their counterparts

overseas.

 

The quality of many of their products and services cannot meet international

standards, which largely hinders their export.

 

Most enterprises are still weak in technological innovation. They are slow

in upgrading products by producing high value added goods. They have also

been frustrated by their small scale sales and short industrial chains.

 

In addition, industrial associations and intermediary agencies have not

fully brought out their potential in advancing the agricultural processing

industry and maintaining market order.

 

Over recent years, the government has drafted a series of preferential

policies to give financing, taxation and credit support to agricultural

enterprises. But enterprises should do more.

 

The enterprises should be highly conscious of market demands. The quality of

products should be further stressed and more efforts should be made to

guarantee the quality of products.

 

As for marketing, enterprises should make full use of information technology

and modern sales methods to keep abreast with the latest supply and demand

trends in the market. Enterprises should learn e-business and logistics

methods to better organize their marketing.

 

The " order-oriented " method, whereas enterprises sign contracts for material

supplies with farmers before harvests, should be comprehensively adopted.

 

Sale contracts between enterprises and farmers should be regulated to

improve contract fulfilment. In the contract, due rights and

responsibilities of both parties should be clearly defined.

 

Enterprises should also help farmers learn the concepts of industrialization

and a rule-based market economy.

 

Meanwhile, these enterprises should pump more funds into R & D programmes,

technology spreading and brand marketing.

 

Standardized management should be applied in producing, processing,

packaging, transporting, selling and hygienic quarantining of agricultural

products to meet the requirement of international quality certification.

 

A fair and reasonable distribution mechanism between enterprises and farmers

is needed. Enterprises' demand of a stable supply of products and farmers'

requirements for a long-term market are the basis of co-operation.

 

The distribution system should therefore be based on voluntary

participation, mutual benefit and fairness.

 

In addition, corporate management should be improved and an effective

mechanism of industrial self-discipline should be set up for the better

growth of the industry.

 

The author is vice-minister of agriculture.