Analysis Report on Value of Industrialization
of China’s Agriculture from 2006 to 2008

Abstract:

Industrialized operation of agriculture plays a more and more important role in the development of China 's agriculture economy. After decades of development, the industrialized operation of China 's agriculture develops rapidly, the number of industrialized organizations increases a lot, the group of leading enterprises booms, the profit combination system is improving, and the capacity of pulling the income of farmers.

1. Basic condition of agriculture industrialization

Against the new demand for agriculture, enterprises should promote the industrialization though the change in operation concept, development method, and acceleration of development. This has achieved obvious result by the end of the “Tenth Five-year Plan” period.

(1) Rapid development of industrialized operation organizations. There are 135,725 agriculture industrialized organizations, 19.1% more over that of 2004. Among these are 61,268 leading enterprises or 45.1% with 4010 with sales over 100 million RMB; 62,914 intermediaries or 46.4% in which 15,060 participate in the agriculture industrialized professional operation; 11,543 professional markets or 8.5% of the total number of industrialized enterprises, in which 3824 has trade volume of over 50 million RMB. The total volume of fixed assets is 978.5 billion RMB, 20.8% more. The fixed asset of leading enterprises is 871 billion RMB, 89% of the total volume. The staff of industrialized organizations is 34.19 million, 2.5% more, in which that of leading enterprises is 21 million, 61.4% of the total number.

(2) Maturity of profit combination system. In all kinds of combination of industrialized organizations with farmers, contract takes 55.3%, cooperation 16%, stock holding cooperation 15.2%, and other forms 13.5%. Contract, cooperation and stock holding cooperation take 86.5% of all the forms, 6.6% more than that of 2004. In contract relationship, order relation has reached 59,549, taking 43.9%, 10.9% more than the previous year; the total value of orders is 377.9 billion RMB, and implement rate of contracts reaches 80.7%, 0.1% higher.

(3) Improvement in comprehensive profit. The sales of leading enterprises is 1844.4 billion RMB, net profit 118.2 billion RMB, tax 58.64 billion RMB, increasing by 29.4%, 31.4% and 21.7% than 2004. The income of intermediaries is 272.5 billion RMB, 29.3% more than that of 2004; the trade volume in professional markets is 943.9 billion RMB, net profit 39.4 billion RMB, tax 12 billion, growing by 9%, 5.9% and 9.6%.

(4) Increased pulling strength. Among all the industrialized organizations, there are 62000 planting enterprises with 0.969 billion acres; grazing enterprises 43000 with 0.739 billion live stocks; marine product enterprises 8579 with raising area of 77.21 million acres of water. Industrialized organizations pulled 87.26 million farmers (in which orders pulled 59.53 million), 3.2% more, and takes 35.2% of the farmers in China . The increases income from the industrialized organization is 116.6 billion RMB, and on the average 1136 RMB per capita, 11.1% higher.

(5) Enhanced level of opening up. In 2005, leading enterprises realized export of 23.127 billion USD, 11.2% more and took 83.8% of the total export of agriculture and 0.5% more than the previous year. Meanwhile, leading enterprises strengthened international cooperation and attracted foreign investment. In 2005, 9384 leading enterprises induced foreign investment with a total investment of 6.9 billion USD, 5.65 more than that of 2004.

（ 6 ） Improvement in policy environment. All government departments strengthened their support to agriculture industrialization. In 2005, the bank loans of leading enterprises were 235.9 billion RMB, 24.6% more than that of 2004; the financial support was 9.7 billion RMB, 15.9% more.

2. New trend of agriculture industrialization

T he Fifth Plenary Session of the Sixteenth Congress of CPC planned the deployment of the establishment of socialist new village and made higher requirements for the industrialization of agriculture and also provided vaster room of development. All kinds of industrialized organizations participated in the construction to promote the transition from rapid development to innovation and creation.

(1) Expansion of organization functions. Agriculture industrialized organizations transit from individual operation participants to new agriculture production bodies. This plays a more and more important role in the rural economy development, new village construction and national macro-economy development. Some capable leading enterprises made full use of their advantage in capital and participated in rural infrastructure construction and social public undertakings, and played a vital role in improving the condition of rural areas.

(2) Innovation in pulling methods. Organizations actively suited the requirements of socialized production and organized market to expand their methods of pulling the development of agriculture and the increase in the income of farmers. On the basis of “company + farmers,” several more types of combination such as “company + base + farmers,” “company + intermediary + farmers,” “professional market + farmers,” and “cooperation organization + farmers” emerged.

(3) Increase capacity of processing. The deep processing capacity of leading enterprises is greatly improved.

(4) Increased channels of investment. The investment in agriculture industrialization has changed from the single finance investment to the diversified structure with finance investment as the direction, private capital, industrial and commercial capital and oversea capital as main body and financing loan capital as support. At present, the Bank of Agriculture Development has clarified that the support targets expand from leading enterprises of corn, cotton and oil to all leading enterprises of agriculture industrialization above the municipal level.

(5) Expansion of outward field. Leading enterprises all strengthened their competitiveness and enhanced their own outward level to implement “going out” strategy by investment in construction, merging and purchasing, share holding, renting, listing and technology share holding. At present, there are more than 40 leading agriculture enterprises with oversea investment, or cooperation, or listing, with a total investment of over 13.5 billion RMB (1.245 billion USD, 5.224 billion RMB and 12.05 million EU), and the investment involves over 30 countries and regions in Asia, Africa, North America, Europe and Australia. Some capable leading enterprises have been listed overseas by capital operation.

Table of Contents
Chapter One. General Introduction	 1
Section one. Goal of the report	2
Section two. Research scope	3
Section three. Research field	4
Section four. Data source	5
Section five. Research methods	6
Section six. General definition	7
Section seven. Market definition	8
Section eight. Index system of market competitiveness	9
Section nine. Research target	10
Chapter Two. Investment Status Quo Agriculture Industrialization Field	12
Section one. General introduction	13
Section two. Definition and features	14
Section three. Features of this industry	15
Section four. Status quo of development	16
1. Analysis on investment status quo	17
2. Analysis on national investment	18
3. Analysis on scale of investment since opening up	19
Section five. Analysis on status quo of domestic private investment in agriculture 	20
Section six. Achievements of agriculture investment in recent years	21
1. Financial support of agriculture has reached historical height	22
2. From financial dislocation to financial regurgitation feeding of farmers	23
Section seven. The promotion of industrialization to new village construction	25
Chapter Three. Use of Oversea Investment in Recent Years	26
Section one. Review and prospect of oversea investment	27
Section two. Features of oversea investment	28
Section three. Status quo and prospect of Hong Kong investment in mainland China	29
Section four. Analysis on comparative advantages and environment supervision of Hong Kong
 investment
Section five. Analysis on Taiwan investment	 32
Chapter Four. Analysis on Cases of Competitiveness of Agriculture Industrialization 33
Section one. Theories of technology development	34
Section two. Analysis on competitiveness 	35
Section three. Analysis on elements of impacting the competitiveness improvement of China’s
 agriculture	36
Section four. Cases research of technology progress and competitiveness of agriculture 
industrialization	37
Section five. Thinking of case research and definition of relative concepts	38
Section six. Calculation of technology progress	39
Section seven. Case research of impact of technology progress to agriculture industrialization
Chapter Five. Analysis on Policy Environment Supervision of Agriculture Investment Market
Section one. Analysis on macro-economic policies	43
1. Financial policies	44
2. Target selection of financial investment	45
3. Financial subsidies
Section two. Taxation policies	47
1. Comparison of China’s agriculture taxation policies with those of other countries
2. Continuous reform in rural taxation policies	49
Section three. Analysis of finance on infrastructure of agriculture supervision	50
Section four. Analysis on investment and financing system of agriculture	51
Section five. Analysis on loan of agriculture	52
1. Loan support policies of domestic agriculture	53
2. Status quo of financial support	54
Chapter Six. Analysis on Investment of Key Listed Agriculture Enterprises Supervision	56
Section one. Analysis on investment value	57
Section two. Analysis on investment in key enterprises in 2006	58
Section three. Analysis on capital efficiency	59
Section sour. Investment opportunities provided by exterior environment	60
Section five. Investment opportunities provided by interior environment	61
Section six. Seven agriculture sections focused on by investors	62
Section seven. Brief analysis on listed leading agriculture enterprises 	63
1. Analysis on investment value of the first group of key listed leading agriculture enterprises
2. Analysis on investment value of the second group of key listed leading agriculture enterprises
3. Analysis on investment value of the third group of key listed leading agriculture enterprises
	67
Chapter Seven. Assessment of Investment Value of Key Leading Enterprises	68
Section one. Strategic choice of investment	69
Section two. Focus on the policy and see the price	70
Section three. Exploration of modes to seek for shining point	71
Section four. Prediction of disaster to seize the opportunity	72
Section five. Focus on energy to dig potential	73
Chapter Eight. Potential Investment Opportunities in Agriculture	75
Section one. Analysis on investment in listed key agriculture enterprises	76
1. Analysis on investment value in 2006	77
2. Analysis on investment value in 2007	78
Section two. Analysis on capital efficiency of listed enterprises	79
Section three. Investment opportunities provided by exterior environment	80
Section four. Investment opportunities provided by interior environment	81
Section five. Seven agriculture sections focused on by investors	82
Chapter Nine. International Comparison of Investment in China’s Agriculture Industrialization
Section one. Analysis on international investment market 	85
Section two. International comparison of domestic investment market	86
Section three. Analysis on major elements impacting the domestic investment market 	87
Chapter Ten. Analysis on Potential Investment Opportunities	89
Section one. Evaluation of prospects 	90
Section two. Analysis on market competitiveness	91
1. Content of agriculture competitiveness	92
2. Components of agriculture competitiveness	93
Section two. Overall judgment on developing potential	94
1. Potential of agricultural products processing industry	95
2. Potential of organism agriculture	96
3. Potential of eco-agriculture	97
4. Potential of info-agriculture	98
5. Potential of brand agriculture	99
6. Potential of agriculture sections	100
	101
Chapter Eleven. Investment in Agriculture and Industrialization Restructuring	102
Section one. Strategic thinking modes	103
Section two. Analysis on modes	104
1. Selection of various modes	105
2. Modes in the market economy	106
a. Pulled by leading enterprises	107
b. Pulled by intermediaries	108
c. Pulled by professional markets	109
d. Pulled by market combination	110
e. Pulled by combination of agriculture, science and education	111
f. Pulled by professional associations	112
Section three. Existing problems and solution	113
Chapter Twelve. Status Quo of Oversea Investment Usage by Different Industries in Agriculture
Section one. Plant production	116
1. Status quo from 2005 to 2006	117
2. Trend from 2007 to 2008	118
Section two. Forest	industry119
1. Status quo from 2005 to 2006	120
2. Trend from 2007 to 2008  121
Section three. Livestock farming	122
1. Status quo from 2005 to 2006	123
2. Trend from 2007 to 2008	124
Section four. Fishing industry	125
1. Status quo from 2005 to 2006	126
2. Trend from 2007 to 2008	127
Section five. Oversea loans and oversea direct investment	128
1. Review and prospect	129
2. Major source, scale field and scope	130
Chapter Thirteen. Key Investment Fields in the Future Years 	133
Section one. Key investment fields of agriculture infrastructure in 2007	134
Section two. Investment distribution of agriculture infrastructure in 2008	135
Section three. Possible distribution of development after 2010	136
1. Source and engine of growth	137
2. Possible distribution of development after 2010	138
Chapter Fourteen. Precaution of Risks of Investment in Agriculture Industrialization	140
Section one. Analysis on risks of competition	141
Section two. Risks of investment	142
Section three. Analysis on risks of nature	143
Section four. 	Analysis on risks of market144
Section five. Analysis on risks of rules and policies	145
Section six. Analysis on risks of managment	146
Section seven. Analysis on risks of technology	147
Section eight. Analysis on risks of investment	148
Section nine. Prevention of risks 	149
1. Prevention of policy risks	150
2. Prevention of financing risks	151
3. Prevention of moral risks	152
4. Prevention of technology risks	153
5. Prevention of job selection risks	154
Chapter Fifteen. Selection of Strategies of Agriculture Industrialization Investment	156
Section four. Changes of market prices	158
Section five. Analysis on trade	159
Section six. Analysis on major sales channels	160
Section seven. Prices in different markets	161
Section eight. Analysis on market competition	162
1. Analysis and prediction of water plants raising from 2006 to 2008	163
2. Analysis and prediction of water plants consumption in different countries from 2006 to 2008
Section nine. Analysis on Import and Export of Relative Products from 2004 to 2006	165
1. Import and export of water plant products in 2004	166
2. Import and export of water plant products in 2005	167
3. Import and export of water plant products in 2006	168
4. Import and export of water plant products in 2007	169
Chapter Nine. Crabs	171
Section one. Analysis on domestic production	172
1. Review	173
2. Experience of rapid development of crab raising industry	174
Section two. Interpretation of policies on crab raising	175
Section three. Analysis on consumption 	176
1. Analysis on domestic consumption market	177
2. Analysis on international consumption market	178
Section four. Changes in market prices	179
Section five. Analysis on trade 	180
Section six. Analysis on major sales channels	181
Section seven. Prices in different markets	182
Section eight. Analysis on market competitiveness of products	183
1. Analysis and prediction of production from 2006 to 2008	184
2. Analysis and prediction of consumption from 2006 to 2008	185
Section nine. Analysis on import and export of relative products from 2004 to 2006	186
1. Analysis on import and export in 2004	187
2. Analysis on import and export in 2005	188
3. Analysis on import and export in 2006	189
4. Analysis on import and export in 2007	190
Chapter Ten. Turtles	192
Section one. Analysis on domestic production	193
1. Review	194
2. Experience of rapid development of turtle raising industry	195
Section two. Interpretation of policies on turtle raising	196
Section three. Analysis on consumption	197
1. Analysis on domestic consumption market		198
2. Analysis on international consumption market	199
Section four. Changes in market prices	200
Section five. Analysis on trade	201
Section six. Analysis on major sales channels	202
Section seven. Prices in different markets	203
Section eight. Analysis on market competitiveness of products	204
1. Analysis and prediction of production from 2006 to 2008	205
2. Analysis and prediction of consumption from 2006 to 2008	206
Section nine. Analysis on import and export of relative products from 2004 to 2006	207
1. Analysis on import and export in 2004	208
2. Analysis on import and export in 2005	209
3. Analysis on import and export in 2006	210
4. Analysis on import and export in 2007	211
Chapter Eleven. Analysis on Developing Trend and Developing Strategies of Seafood Industry
Section one. Developing trend	214
1. Prediction of developing trend in 2007	215
2. Developing trend of seafood raising and seafood forage 	216
Section two. Analysis on developing strategy of China	217
1. Features	218
2. Marketing strategies	219
3. Market trade policies	220
4. Operation policies	221
5. Advertisement brand policies	222
Section three. Analysis on leading enterprises	223
Section four. Analysis on market competition structure	224
1. Competition modes	225
2. Competition structure	226
3. Strategies of major brands	227
Chapter Twelve. Research Conclusion	229
Section one. About industry research	230
Section two. Research conclusion	231

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