China's agricultural advantages stand out, expected to take over from Made in China
Chinese agriculture has its own characteristics; in the new market environment, it will be able to build on its strengths and avoid its weaknesses, further highlighting its advantages. A slightly optimistic expectation is that it will take over from Made in China and become a new engine for China's continued rapid economic growth.
30 years ago, China's manufacturing sector collectively considered one question: where are our advantages, and how can we secure our own place in the international market? Who could have imagined that 30 years later, Made in China would serve the globe and be the primary engine of China's economic takeoff.
Traditional wisdom
"In agriculture and food security, China has a wealth of experience that all developing countries in the world can draw on." Earlier this month, FAO Director-General Graziano da Silva said.
The backdrop is that the FAO and the Chinese government announced they had reached several plans aimed at strengthening their partnership in South-South cooperation
Graziano da Silva summarized and introduced a traditional farming system in Zhejiang, namely raising fish in rice paddies. The rice provides shelter and organic food for the fish. In turn, the fish loosen the soil, increase crop nutrients and oxygen levels, and feed on insects and weeds that harm the rice crop. This rice-fish symbiotic system has existed for a thousand years, and has been designated by the FAO as a Globally Important Agricultural Heritage Systems (GIAHS) site.
Modern science and technology
Henan Daily reported that "Jiuxianzi," a superior leek variety bred by the Leek Research Institute of Fugou County, Henan, was carried aboard the first microgravity science experiment satellite, the "Shijian-10" satellite, and launched into space from the Jiuquan Satellite Launch Center in Gansu by a Long March 2D carrier rocket.
The man behind the news is Liu Shunde, now 46 years old, who founded the Henan Province Fugou County Leek Research Institute, the Fugou County Lvjiu Organic Leek Planting Professional Cooperative, and Henan Lvjiu Agricultural Technology Co., Ltd. After 26 years of specialized accumulation, his base is not only the first organic leek planting base in Henan Province, but its leek seeds are also sold across the country and exported to 6 countries and regions in Southeast Asia.
This is a very good case. In China's agricultural production, against the backdrop of being nurtured by the domestic market, supported by the external technological environment, its own accumulation, and institutional transformation and the flow of input factors, competitive advantages are gradually emerging.
Comparative advantage
The varieties in which U.S. agricultural products have a comparative advantage are soybeans, corn and cotton. Large operating scale, high production efficiency and significant price advantages.
At the same time, China's agriculture also has its own advantages in the international market. In 2015, exports of vegetables, fruits and aquatic products reached 13.3 billion USD, 6.9 billion USD and 20.3 billion USD respectively, together accounting for 57.3% of total agricultural exports; the trade surpluses were 12.7 billion USD, 1 billion USD and 11.4 billion USD respectively.
As for tea, another major export product, it is of course a labor-intensive product, and now labor is relatively difficult to secure. So last month, the Zhejiang Provincial Department of Agriculture issued the "Action Plan for Advancing 'Machine Substitution for Labor' in the Agricultural Sector (2016-2018)." It involves: promoting 50,000 units (sets) of tea production and processing machinery, basically achieving mechanization in tea production and processing, with the mechanization rate of tea garden pruning and mass-market tea picking reaching above 90%, and the mechanization rate of famous and premium tea processing reaching above 95%.
Last year, China's domestic soybean imports were 81.69 million tons. Liao Xiyuan, Director of the Science, Technology and Education Department of the Ministry of Agriculture, said, "The import volume in 2015 is equivalent to what would require 670 million mu of cultivated land in China to produce. If it were all produced domestically, that is unimaginable, and it would certainly crowd out other crops. Therefore, to meet domestic soybean consumption demand, while developing domestic production, we must also rely on imports to make up the shortfall."
But domestic soybeans still have advantages, reflected in the making of traditional soy products and condiments. Therefore, in the "Guiding Opinions on Promoting the Development of Soybean Production" issued by the Ministry of Agriculture, it is proposed that by 2020 the soybean area reach 140 million mu, an increase of 40 million mu over the current level.
The comparative advantage of China's agricultural production lies in agricultural products that involve a large input of labor, require intensive cultivation, and are of medium technology.
Agricultural e-commerce
A major advantage, or potential advantage, of Chinese agriculture today is its leading agricultural e-commerce.
In the "Implementation Opinions of the General Office of the Liaoning Provincial People's Government on Promoting the Accelerated Development of Rural E-commerce," the goals are: by 2020, the rate of e-commerce application coverage in rural areas across the province reaches 100%, and a number of rural e-commerce demonstration counties (cities), townships (towns), villages and enterprises with a typical driving role are cultivated.
As for the urban consumer market, various fresh food e-commerce players keep emerging, and ultimately there will be market winners that sort out the supply chain. Of course, for the international market, B2B is more important. With the rapid spread of the mobile internet in rural China and the deepening of user applications, more and more farmers are keeping in touch with customers through apps, providing prices, communicating about business, and concluding transactions.
Summary:
Agricultural e-commerce has played a media role, letting the outside world suddenly understand the comparative advantages of Chinese agriculture. Chinese agriculture has its own characteristics; in the new market environment, it will be able to build on its strengths and avoid its weaknesses, further highlighting its advantages. A slightly optimistic expectation is that it will take over from Made in China and become a new engine for China's continued rapid economic growth.