Rural Revitalization in China: Highlights of the No. 1 Central Document
The No.1 Central Document was first introduced in 2004 and yearly outlines the priorities in the field of agriculture and rural affairs. Avoiding food losses, upgrading the infrastructure of rural e-commerce, further developing agriculture modernization, and improving rural industries development are just a few of the priorities mentioned in China's No. 1 Central Document for 2024. The document is seen as an indicator of policy priorities and a roadmap for rural revitalization development.
Food Security
Ensuring national food security remains the top priority in China, with a target of producing over 650 million metric tons of grain in 2024. To achieve this, efforts will focus on stabilizing crop areas and increasing yields per hectare by using certified seeds and advanced technologies. Soybean production will be boosted by planting high-oil, high-yielding varieties. Additionally, the minimum purchase price for wheat (third grade) in 2024 has been set at 2360 RMB/ton (302 euro/ton), a slight increase compared to the price in 2023. Authorities will also determine a minimum purchase price for rice.
In recent years, the meat consumption per capita in China has increased and shifted away from primarily pork to different kinds of meat. Where in 2014 pork meat still accounted for 63.3% of the total meat consumption, it has dropped to 49.1% in 2023, while at the same time the production kept growing. To balance the supply and demand the pig production should be adjusted to the market, and also the basic production capacity of beef and mutton, supporting aquaculture farming and developing forest foods (beans, nuts, mushrooms etc.) should be stabilized.
The dairy market in China is reaching its saturation point after more than 30 years of development. Since 2023, the dairy sector has been facings an overproduction of raw milk, resulting in a continual decline in the price of raw milk and operating losses for farmers. In China, the consumption of butter and cheese with a long shelf life are low compared to the consumption of major dairy foods like milk, yogurt and milk powder, which makes the milk prices more volatile. The diary industry will enter a shifting phase from quantity to quality, improving the standards for liquid milk, standardizing the labeling for milk powder, and boosting the consumption of fresh milk will become the prioriteis for the dairy industry.
When it comes to breeding innovation, breeding technology is core, for both seed and animal husbandry breeding. China is aiming to broaden and accelerate the introduction of biotechnology and new breeding techniques in the breeding sector. The current focus of breeding technology in China is on digitization applications.
Reducing Food Losses
Avoiding food losses contributes directly to food security and is a topic that has been gaining more and more attention in China. China aims to reduce losses and waste throughout the entire food supply chain, including the cold chain logistics and development of agricultural industrial parks.
Modernization of Agriculture
Protected agriculture (greenhouses and intensive livestock) is one of China's solutions for boosting food production and supply chain resilience. The first plan of modern protected agriculture outlines the steps to be taken between 2023 - 2030 towards modernization of agriculture.
Digitalization and Rural E-commerce
To further develop agriculture digitalization, China will establish pilot zones, upgrade the digitalization level in large-scale farms and improve smart agriculture standard systems.
Rural e-commerce is mentioned in the No.1 Document for the first time this year. Live-streaming is booming in China, with live-commerce as a typical feature. Live commerce is one of the distribution channels used to sell agri-products directly from field to the consumer. Live-streaming platforms from Alibaba, ByteDance, Tencent and Pinduoduo have helped to turn China's agricultural e-commerce into a 60 Euro billion market. With this change in consumer behavior, it is important to upgrade the whole supply chain of rural e-commerce, from cool chain logistics to storage and processing. Ensuring a stable quality of the products is essential to keep and gain the attraction of online shoppers.
Green and Ecological Agriculture
The document mentions several measures to be taken when it comes to the development of ecological agriculture and the protection and restoration of rural ecosystems. Reducing the use of fertilizer and pesticide, strengthening the utilization of agricultural waste by recycling plastic film and using manure, promoting the model of citcular farming and improving and protecting aquatic biodiversity. A good example of the last measure is a fishing ban for important areas of the Yangtze River that China introduced in 2020 and that will last for 10 years. This ban aims to not only protect the aquatic biodiversity, but will also help with preventing water loss and soil erosion.
Putting Knowledge into Practice
China's small-scale farms contribute the majority of agricultural output while facing great challenges, like a lack of planting knowledge and market information. At the same time, experts, researchers and students in agriculture-related studies do possess this knowledge, but face difficulties in putting this knowledge into practice.
To narrow the gap between scientific research and practice, China Agricultural University (CAU) initiated a program called Science and Technology Backyards (STB). STB connects groups of graduate students to agricultural villages, where they will stay and solve practical problems insustainable agricultural production and rural development. This initiative integrates scientific research, practical training and transfering knowledge, and has become an important platform for transforming agricultural science and technology innovation into a service that can be provided to farmers at zero-distance, zero-time difference and zero-cost.
With support from the local STB program, Xihuaixhuang village (Beijing) in 2022 increased the income of planting from a 1.5 Ha arable piece of land by seven times compared to 2020. A great achievement and a great example of the positive impact of the STB program.
Rural Employment
To ensure rural employment and to increase farmers' incomes, measures like building local specialty brands, promoting rural tourism, setting up handicraft workshops, and the support of the development of specialized and local farm products are mentioned in the No. 1 document.
Conclusion
The No.1 Central Document provides the direction for both the agricultural and the rural development. It provides opportunities for the Dutch government to engage with China, on topics like sustainable agriculture. For Dutch companies it's provides the chance to look for opportunities, as the document indicates in which fields the agricultural sector will develop, like in modernizing production and improving breeding.
The No.1 Central Document (in Chinese) can be found here.
Written by Lily Zhang - Team Beijing
July 2024