The European Union (EU) will see its agriculture exports to China exceed 2 billion euros in five years, if current trade trends continue, said a EU representative.

As its economy continues to develop, China's urban middle class will grow from 120 million to 150 million in five years, which bodes well for the burgeoning farm trade between the two sides, said Raimondo Serra, Agricultural Counselor with the Delegation of the European Commission in China.

EU's agriculture exports are likely to hit 4 billion euros, when China's urban middle class reaches 200 to 250 million, said Serra at a forum during the "Sino-Italian Green Week" which runs from July 3 to 6.

As more people become more affluent their tastes are expanding to include more western-style foods, bringing greater opportunities for EU's farm trade in China, Serra said.

"China, however, can produce most products and has a comparative advantage in labor-intensive crop farming," he said, adding China's production of garlic, mushrooms, tomato paste and frozen strawberries can put heavy pressure on the EU.

"But the EU can't just build a defensive strategy," Serra said.

China, which is short of land and water resources, has production limitations and the country has been a net food importer since 2003.

"The EU has opportunities in China, especially in value-added products. In an environment of relatively low tariffs, we have to be more offensive-minded," Serra said.

According to him, from 2001 to 2005, the value of wines exported from EU to China rose from 12 million to 36 million euros, that of virgin olive oil grew from 500,000 euros to 8.4 million euros, and cheese export volume also jumped from 500,000 euros to 2.7 million euros.

The export volume of processed agricultural products from EU to China increased from 110 million to 206 million euros in the past five years.

China is one of EU's major trading partners. According to Serra, last year, EU's imports from China totaled 158 billion euros and its exports to China reached 52 billion euros, accounting for, respectively, 13.5 percent and 4.9 percent of its total import and export volumes.

Agriculture trade, however, took a little portion. Serra said EU imported 2.1 billion euros worth of farm produce from China last year and its export volume to China reached 900 million euros, taking up, respectively, 3.8 percent and 2.4 percent of EU's total agriculture imports and exports.

"Sino-Italian Green Week", co-held by Chinese and Italian governments, puts on show a series of activities, such as environmental forums and exhibitions of Italian architecture and design, from July 3 to July 6.

Source: Xinhua