Chinese authorities have issued their first policy document of 2016, underscoring the importance of rural reform and developing modern agriculture. This is the 13th year in a row for a rural-focused document.
The key policy document from the Central Committee of the Communist Party of China and the State Council revealed that China will apply new development concepts to achieve moderate prosperity in rural areas. The document also said that China should improve its output capacity to ensure grain security and supply, and at the same time work on narrowing the urban-rural income gap.
The supply-side structural reform in the agriculture sector was identified as a focus that the country should work more on.
Supply-side reform needed to reshape growth pattern
China's agricultural sector is facing an imbalance in which some produce are in over-supply, while others are in extreme shortage. The burgeoning animal husbandry and fishery industries across the country are examples of the glut in production. And there's now a growing voice calling for supply-side reform to address that imbalance.
Freezing temperatures outside, but this is no reason to quit shepherding. Han Jianfei has worked on his farm for the past twenty years.
The business was lucrative in the early phase. Each year, he sold nearly one thousand sheep. But now, the number has fallen to three hundred.
"The price of mutton is decreasing year by year. But the cost of raising a sheep is on the increase. We have made very limited profits from this business," Han Jianfei, manager of Tianjin Jianyeda Aquacultural Base, said.
Han also runs several fresh-water fisheries on the farm. But the situation is almost the same as with the sheep business. The over-supply of fish on the market has made fishery less attractive.
"At the beginning, we sold fish directly in the market. However, we found that this could not guarantee a fixed income, as the supply and demand pattern changes from time to time," Han said.
China's agricultural production is now facing a problem of over-capacity. It means the supply of certain products is far beyond the actual demand. So the country has made supply-side reform the main focus of its agricultural strategy this year.
The supply-side reform will ensure that farmers benefit from agricultural development.
The Chinese government plans to channel more money to rural areas, and encourage private investment into agriculture projects.
And the top economic planner suggests combining agriculture with secondary and service industries.
"China will promote the blending of different industries in rural areas, and construct a modern agricultural industrial system. Measures will be taken to yield more benefits for the agricultural sector, increase farmers' income and the prosperity of rural areas," Li Pumin, chief secretary of Nat'l Development and Reform Commission, said.
This policy is welcomed by Han Jianfei who is now eager to make a change. And he's already getting started on building his new business.
"Considering this situation, we decided to restructure our business by integrating tourism, to attract customers to fish here," Han said.
As for the sheep business, Han plans to cooperate with online dealers. He hopes to make his own brand name from his quality products. And if all goes well, he may never quit shepherding.
