June 29, 2006

China aims for 7 percent annual growth for farm exports

China's Ministry of Commerce is aiming for the country's farm exports to grow 7 percent annually to reach US$38 billion by 2010. 

China earned US$27.2 billion from farm produce export last year.

The ministry's foreign trade department said this "modest" objective would allow China to grow better quality farm produce and raise its competitiveness in the world market.

China currently accounts for 3.2 percent of the world's farm produce trade while farm produce constituted 3.6 percent of the country's total exports last year.

China's farm produce exports have seen strong growth in the past two years as international prices had been much higher than domestic ones.

Of the 30 staples monitored by the ministry, 20 registered a growth in 2005.

For example, the average export price for chickens were four to five times higher than the domestic price last year.

China has also set up a special fund to provide export credit insurance for domestic farmers.

More than a quarter of farm produce exporters who had their credit insured last year were in the poultry trade.

The ministry of Commerce plans to release monthly reports for 14 other products and export guides on six additional regional markets this year.