Modernizing China's Agriculture to Boost Economy

Published on February 18, 2015 14:44 by Water Network Research, Official research team of The Water Network in Government

Investing in infrastructure in rural areas could help digest some of the excess capacity in China's steel and cement industries, as well as create new jobs, wrote Li in the latest issue of the Chinese Communist Party journal Qiushi

The Chinese economy grew at its slowest pace in 24 years in 2014 as property prices cooled, hitting demand for a range of commodities.

Overhauling farming models and improving efficiency in distribution systems could also boost rural incomes, Li said in the article published late on Sunday.

"Farmers are the country's largest consumer group...by increasing farmers' incomes through accelerating agricultural modernization, we can activate farmers' huge potential consumption demand."

About 45 percent of China's population, or 630 million people, still make a living from agriculture, estimate analysts, but their productivity lags far behind that of developed countries.

Although the country is self-sufficient in its most important food crops, it has paid a huge price for its intensive farming practices with excessive use of fertilizers, pesticides and plastic sheeting causing serious environmental damage and threatening food safety, said Li.

Farmers need to focus on consumer demand rather than on production volumes, said the Premier, and urged them to produce safe food and specialty products including organic ones.

"Currently, the quality and safety of agricultural products is generally stable, but hidden risks linger and people still frequently break the law," Li wrote.

The agricultural sector also needs to integrate processing so that farmers get added value from their output, and more efficient distribution would help reduce farmers' costs, he said.

Source: Reuters

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