September 7, 2011


China unveils 2011-15 agricultural output target 


China's Ministry of Agriculture has released the country's 12th Five-Year Plan for agricultural development, which has outlined major targets for agricultural output over the next five years.


According to the plan, the grain planting area in the country will be maintained at 1.6 billion mu (0.106 billion hectares) so that China will keep its grain production capacity at over 540 million tonnes per year-compared with 546 million in 2010.


In the meantime, cotton output will rise to seven million tonnes-up from 5.7 million in 2010, and oil-bearing crops 35 million tonnes-up from 32.3 million tonnes in 2010.


The plan also states that the added value of primary industry will grow by around 5% per year from 2011 to 2015, while farmers' income will increase at a pace of over 7% in the next five years. A total of 40 million rural labourers will be transferred out of farm jobs in the next five years, according to the plan.


The government has been exploring various ways to boost productivity, including upgrading farm technology, more intensive input of factors of production in key agricultural zones, as well as mass relocations intended to make way for large-scale mechanised farm operations.


Nevertheless, the gap between demand and supply is likely to widen over time, with demand expected to grow much faster than supply, which is set to raise the needs for agricultural commodity imports by China.

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