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Last updated at: (Beijing Time) Tuesday, August 20, 2002

Farm Products Processing Industry Helps China's Agriculture Prosper

The agricultural processing industry has been the engine fueling the development of Chinese agriculture and filling farmers' wallets.


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The agricultural processing industry has been the engine fueling the development of Chinese agriculture and filling farmers' wallets.

The importance of agricultural processing in the national economy has been steadily rising during the reform years, typically the last five years of the 20th century.

According to figures released by the National Bureau of Statistics (NBS), the farm products processing industry has becomethe most dynamic industry with a growth rate topping other currentindustries in the national economy.

In the last 10 years, its average annual growth reached 9.2 percent, higher than the current growth of the national economy and the value added by this industry hit 84.6 percent, up 5.8 percentage points since 1995.

Ou Xinqian, vice-minister of the State Economic and Trade Commission, said the fast growth of the agricultural processing industry had boosted the market for Chinese agricultural products,and promoted the upgrade of agriculture generally.

The huge leaps in the industry created the power to propel the national economy, Ou said.

Processing farm products also brings Chinese farmers better incomes. More and more township enterprises are forging a relationship that shares benefits with local farmers, which ensures business profits and at same time also cuts risks for agricultural producers.

So far, the agricultural processing industry has created more than 15 million job opportunities for Chinese farmers throughout the country.

The industry is also speeding up the restructuring of Chinese agriculture.

Du Qinglin, Chinese Minster of Agriculture, revealed Chinese government targets for setting up a secured system for farm products supply, a system of processing industries, a system of quality control and safety, a system of technical innovations and system of policy support to conform with WTO rules.

Du said China had to rely on these five systems to broaden agricultural reforms and economic restructuring in rural areas.

According to the analysis drawn by Liu Zengsheng, director of the Bureau of Township Enterprises of the Ministry of Agriculture,setting up the above five systems will gradually help change the severe situation facing Chinese agriculture after the WTO entry and will increase the competitiveness of Chinese farm products.

By the year 2005, farm product processing will play a more vital role in the national economy and with the continuous optimizing of regional resources, China is sure to participate ininternational competition with new vigor, Liu predicted.


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