Sixth Industry Lets Farmers Share More of the Benefits from the Integration of the Three Industries
An ordinary apple sells for only a few yuan at the farm gate, but once processed into apple juice, apple cider vinegar or dried apple, its value multiplies; and if it is a branded apple with a distinct "identity," or even a product protected by a geographical indication, its value rises even more. For the New Year holiday, going to orchards in the countryside to pick fruit and relax not only gives city dwellers the pleasure of rural life, but also brings farmers considerable income.
This is a vivid example of how the "little apple" industry, by improving processing, sales, services and other links, promotes the integration of the primary, secondary and tertiary industries and leverages a "big market."
The Central Rural Work Conference held recently pointed out that we should vigorously develop agricultural industrialization. Shift from "production orientation" to "consumption orientation." We should introduce modern industrial organization methods such as industrial chains and value chains into agriculture, and promote the integrated interaction of the primary, secondary and tertiary industries.
"This means that China will focus on promoting the 'sixth industry,' that is, the 'sixth sector,' developing new growth points for the economy and letting farmers share more of the profits from the secondary and tertiary industries," said Zheng Fengtian, a professor at the School of Agricultural Economics and Rural Development at Renmin University of China.
It is understood that the "sixth industry" is a concept proposed by Japanese agricultural experts. It encourages farmers to diversify their operations, that is, not only to grow crops (primary industry), but also to engage in agricultural product processing (secondary industry) and to sell agricultural products and their processed products (tertiary industry), so as to obtain more added value and open up bright prospects for the sustainable development of agriculture and rural areas. "1+2+3" equals 6, and "1×2×3" also equals 6; this is the essence of the "sixth industry."
"The 'sixth sector' has been promoted relatively well in Japan and South Korea. In the past we paid more attention to the production link of agricultural products, but in fact the production process has multifunctional value. For example, plants can be viewed during flowering and picked during fruiting, and primary agricultural products can enter a larger market after processing," said Zhu Lizhi, a researcher at the Institute of Agricultural Economics and Development of the Chinese Academy of Agricultural Sciences.
Data from the Ministry of Agriculture show that at present China has 330,000 various types of agricultural industrialization organizations. Among them are more than 120,000 leading enterprises, with annual sales revenue of 7.9 trillion yuan. Various industrialization organizations reach and drive 120 million rural households, and households participating in industrialized operations increase their income by more than 3,000 yuan per household each year.
Minister of Agriculture Han Changfu said that in the future we will improve the efficiency of agricultural product processing and circulation, promote the storage, preservation and processing of agricultural products, vigorously develop agricultural industrialized operations of the "company + farmer" and "company + cooperative" types, strengthen the construction of the market system at the place of origin, support the development of direct sales, distribution, e-commerce and other agricultural product circulation formats, and lead the brand cultivation and industrial upgrading of planting and breeding industries, so that farmers can share more of the value-added benefits of the industrial chain.
At the same time, we will further develop the multiple functions of agriculture, vigorously develop leisure agriculture and one-village-one-product programs, enhance the ecological, leisure and cultural value of agriculture, and focus on building a "sixth industry" that integrates the primary, secondary and tertiary industries.
"We cannot let a bumper harvest of agricultural products be wasted in the fields, and we cannot let farmers always fall into the predicament of having to sell at a low price," Han Changfu said. In 2015 China will expand the scope and scale of subsidies for primary processing facilities for agricultural products, and vigorously develop storage, preservation, grading and classification, packaging, transportation and marketing, and so on.
The Central Rural Work Conference stressed that making the agricultural industry bigger and stronger can create many new industries, new business formats and new models, and cultivate new growth points for the economy. We should stimulate farmers' vitality for creation, innovation and entrepreneurship, and create a vivid situation of mass entrepreneurship and innovation by all.
In the soon-to-pass 2014, China's agricultural product e-commerce developed rapidly, effectively promoting the linkage between production and sales, reducing circulation links and lowering costs. It is understood that in 2015 China will build a national support system for agricultural product e-commerce, promote cooperation between various types of business entities and large e-commerce platforms, jointly explore multiple marketing models such as graded and classified branded agricultural products and "farm-gate market + e-commerce enterprise + urban terminal distribution," and accelerate the construction of village-level information service stations (personnel), and so on.