Han said the government will continue to crack down on illegal food additives as well as substandard pesticide residues.
China's demand for food will still remain high as the population increases with the ending of the one-child policy. According to Chinese media reports, grain output reached over 620 million tons in 2015. The figure has increased over 12 consecutive years.
Of that amount, however, about one-fifth was imported, according to a report by China Radio International (CRI).
"Grain from foreign countries is indeed cheaper than ours, much cheaper," Han told CRI in an interview. He said the scale of China's agriculture is small and the cost is high.
"So we don't have any advantage in grain prices. For that reason, we've imported a large amount of grain."
He added that China will not seek a consecutive increase in grain output during the next five years, but authorities will consolidate and improve grain output capacity.
Wei Longbao, deputy dean of the China Academy for Rural Development at Zhejiang University, said that since 2003 the government has been offering subsidies and buying agricultural products at protective prices to encourage farmers to grow more grain.
"That policy has played a key role in increasing China's agricultural production for 11 successive years," he said in a recent commentary.
"But things have changed in the global agricultural market. As prices of agricultural products overseas have remained low for quite a long time, prices in the domestic market have been falling too.
"Even though the government still buys grains at protective prices, which are higher than market prices, enterprises that need farm products have been eyeing overseas markets to fulfill their requirements."
Wei said the government needs to adjust its policies to ensure food security. One way of doing this is for Chinese agricultural enterprises to go global.
"Some Chinese agricultural enterprises have the technology and funds to operate farms overseas, and the government should encourage them to do so, for the time has come for China to coordinate global resources to ensure its food security," he said.
One country which has figured high on China's priority list when it comes to agriculture is Australia, said KPMG's Ferguson.
Australian supply
In February, the Australian Treasurer Scott Morrison gave his approval for Chinese billionaire Lu Xianfeng's Moon Lake Investments to buy Van Diemen's Land Company (VDL) — Australia's largest dairy farm — for A$280 million ($210 million).
The company comprises more than 25 dairy farms and covers 17,800 hectares.
But some of the nation's top business and political leaders have warned the purchase could weaken the local market, with the farm's supply instead used to meet the huge demand for baby formula in China.
In recent months, Australian supermarket shelves have been stripped of baby formula, dubbed "white gold" in China, as millions of tins have been shipped there at a much higher price. Milk is an essential ingredient of formula.
Morrison has defended the sale, saying it met the "national interest" test.
"Moon Lake has advised that it intends to continue to supply the milk produced at VDL under the same contractual terms that are currently in place," he said in a statement.
"This provides assurance that there will not be an impact on the supply of milk and milk products in Australia."
Hans Hendrischke, professor of Chinese business and management at the University of Sydney Business School, echoed the view that food quality and safety have become major issues in China.
"China does have a problem with food processing and the government is addressing the issue," he said. "But the issue is complex and the food-processing industry is competitive and fragmented."
The sector has lost the public trust, he added.
"Chinese investors are looking for a supply chain people will be happy with. Australia is one such country.
"They are buying big farms, not small holdings. They are looking at food processing and extending supply chains."
