Why is the development of traditional advantageous industries struggling?

Zhejiang has always been known as the "Home of Silk," but today the traditional agricultural specialty industry of sericulture is beset with crises and declining steadily. A recent survey by the Zhejiang Provincial Department of Agriculture shows that since 2008, both the number of silkworm eggs reared and the silkworm cocoon output in Zhejiang have declined for six consecutive years, and this year's spring silkworm production is still shrinking, with the industry facing a very severe development situation.

According to statistics, in 2013 the total mulberry field area in Zhejiang Province was 908,000 mu, with an annual rearing volume of 1.179 million sheets and a cocoon output of 55,000 tonnes, down 6.5%, 9.2% and 9.7% respectively from the previous year. At present, Zhejiang has 14 silkworm egg production enterprises, which last year produced 767,000 sheets of first-generation hybrid silkworm eggs, a year-on-year decrease of nearly 30%; the total profit of these enterprises was only 1.3 million yuan, with only half of them making a surplus.

Even more worrying is that after six consecutive years of shrinkage, this year's spring silkworm production in Zhejiang Province is still shrinking, with the spring silkworm rearing volume and cocoon output each falling by more than 10%. Combined with the sharp drop in spring cocoon purchase prices, farmers' enthusiasm for planting mulberry and raising silkworms has been further dampened this year. It is estimated that the summer and autumn silkworm egg distribution volume will be 420,000 sheets, a decline of 16%.

Research by the Zhejiang Provincial Department of Agriculture concludes that there are four main reasons for the continued decline of the sericulture industry:

First, overall productivity is low and market competitiveness is weak. Compared with tea, fruit and other crops, sericulture, with a per-mu output value of only 3,077 yuan, involves high labour intensity while its land output rate and comparative returns are extremely low, causing the sericulture industry to remain in a weak position in increasingly fierce industrial competition. Because of this, many sericulture bases located in the developed areas of the Hangjiahu Plain have been continuously encroached upon during the processes of industrialisation and urbanisation. Today, sericulture is increasingly becoming a side-line family occupation in farmers' household income.

Second, the degree of scale operation is low and production methods are traditional. The survey shows that compared with other agricultural industries, sericulture has a low degree of intensification and is mostly based on small-scale household operations. At present, those engaged in sericulture display a phenomenon of "ageing and low education levels," with an average of only 2.6 sheets of silkworm eggs reared per household across the province. Professional large-scale operators, family farms, farmers' cooperatives, leading agricultural enterprises and other new types of entities are hard to find, economies of scale are difficult to realise, and capital investment is negligible.

Third, scientific and technological innovation capacity is weak and modern technological support is insufficient. Affected by the reform of the scientific research system and constrained by the characteristics of the sericulture industry, the survey found that investment in basic sericulture research is seriously insufficient, researchers are draining away, and practical new achievements available for promotion and application are extremely scarce. The dominant varieties currently used in Zhejiang have been in use for more than 30 years, and mulberry varieties suitable for striped mulberry cultivation and year-round striped mulberry cultivation techniques are virtually non-existent. The mechanisation of the sericulture industry lags far behind other industries such as rice and vegetables.

Fourth, the cocoon and silk industry chain is long and constrained by numerous factors. Sericulture involves planting, breeding and the cocoon and silk industry, with a long industry chain; changes at any link will affect cocoon prices and directly impact farmers' income. At the same time, the cocoon purchase mechanism is not standardised, the degree of marketisation is low, there is artificial price suppression and disorderly competition, and the interests of agriculture, industry and trade have long been separated, so that quality cocoons cannot command quality prices.

Based on the above situation, the agriculture department recommends that while increasing financial support for the sericulture industry and strengthening the seed industry system, investment in scientific and technological innovation should also be increased. In addition, for the key cocoon production bases in the Hangjiahu area, an ecological compensation mechanism for sericulture should be established, plain greening policies should be enjoyed, and a long-term industry development plan should be formulated to promote the development of the sericulture economy in the region. To eliminate non-standard collection and drying order and disorderly competition, the cocoon collection and drying mechanism should be standardised, and an open, competitive and orderly market system should be established to achieve quality prices for quality goods.