Exports of Agricultural Products in 2005

Expanding exports of agricultural products is an important channel to increase income of farmers, expedite opening up of agricultural industry and optimize structure of agriculture. The Ministry of Commerce always takes it as an important task to endeavor to expand exports of agricultural products.

In 2005, exports of agricultural products overcame the influence of issues on food security like Avian influenza, foot and mouth disease and Malachite green, and realized faster growth. In the first 11 months, exports amounted to US$24.37 billion, up by 19.3% on a year-on-year basis. Trade deficit in agriculture further fell to US$1.53 billion, down by 71.6% compared with the same period of the previous year. It is predicted that exports in 2005 may reach US$26.5 billion, hitting a new high and US$ 16 billion more than that at the beginning of the Tenth Five-Year Plan, up by 5.6%. According to WTO statistics, exports of agricultural products in 2004 ranked No. 5 worldwide.

Exports of horticultural products, the comparatively advantageous products in China, maintained a good momentum of development. In Jan. through Oct., exports of horticultural products were US$5.78 billion, up by 24%, of garlic and orange up by 42% and 44% respectively, especially, of value added horticultural products like canned tomato paste and apple juice up by 61% and 53% respectively.

Exports of corn recovered growth. In 2005, national positive support policy on corn exports took an obvious effect. In Jan. through Oct., China exported 7.58 million tons of corn with a value of US$970 million, up by 2.9 and 2.5 times respectively. Under the drive of exports of corn, grain exports turned the status of big decrease in 2004 (export volume decreased by 77%) into great increase (export volume increased by 121%), value was US$580 million more than that in the same period of the previous year, accounting for 15% of total exports of agricultural products.

Exports to Korea and EU showed a favorable tendency of increase, to Middle East, CIS and new markets increased rapidly. Driven up by the recovery of exports of animal derived products to EU and exports of corn to Korea, in the first 10 months, exports of Chinese agricultural products to EU and Korea were up by 40% and 41% respectively, besides, exports to Middle East, CIS and Latin America increased with a high speed, hitting 40%, 45% and 42% respectively. Exports of live sheep to Middle East were recovered after the recovery of exports to Jordan in 2004 and to Kuwait in 2005.

Exports in Shandong and other major regions presented a better tendency of growth, and in Jilin and Xinjiang increased sharply. Shandong is the biggest province in exports of agricultural products in China. In the first 10 months, exports of the Province amounted to US$5.5 billion with a year-on-year increase of 28%. Exports of 5 provinces in the nation exceeded US$1.5 billion and of 3 provinces were more than that in the same period of the previous year. Besides, exports of 4 central provinces, Jilin, Xinjiang, Inner Mongolia and Gansu, rose by over 50%.

In order to enlarge exports of competitive agricultural products, the Ministry of Commerce took the following measures with other relative departments in 2005:

1, To make better the development planning, improve the policy environment of agricultural products exports. In 2005, the Ministry of Commerce and relative research institution compiled together the development plan on exports of agricultural products in the eleventh five-year plan. It was the first five year plan for exports of agricultural products, and took current situation into account, analyzed the international export environment, competition advantages and major problems faced with by agricultural products, and put forward the development target and policy measures of enlarging exports of agricultural products. Besides, the Ministry issued policy measures to further expand exports of agricultural products on the basis of deep investigation, studied to provide financial support policies for exports of agricultural products and improved export credit insurance.

2, To Enhance public information service and training. In order to help 160 enterprises engaging in exports of agricultural products to timely obtain information, the Ministry of Commerce updated the monthly report of imports and exports of Chinese agricultural products in 2005, published monthly report of exports of 11 major products like tea and garlic, and opened a topic on agricultural products exports on the MOFCOM website.

3, To keep on promotion of export credit insurance for agricultural products exports. With mutual efforts of the Ministry of Commerce, Ministry of Finance and China Export and Credit Insurance Corporation, the Corporation directly guaranteed US$1.093 billion exports of agricultural products.

4, To strongly supported enterprises to exploit international market.

5, To actively respond to the influence of epidemic. The Ministry of Commerce together with relative departments researched and issued preferential policies to support poultry industry, positively engage in external explanation and foreign negotiations.