This document summarizes China's rural market reforms and policies to support small farmers' participation in large markets. It discusses the stages of rural market development from 1978 onward. It then describes several models small farmers use to connect to large markets, including through logistics companies, supermarkets, agricultural cooperatives, and partnerships with leading agricultural enterprises. Case studies illustrate each model's benefits in improving farmers' incomes and market access.
APR Workshop 2010-Market Development & Agriculture-Wu Laping
1. Market Development & Agriculture Laping Wu Professor, College of Economics and Management, China Agricultural University Email: wulp@cau.edu.cn China-IFAD South-South Cooperation Seminar on Comprehensive Agricultural Development and Poverty Reduction Nanning Guangxi, Nov. 4-6, 2010
2. Laping Wu College of Econ. & Management China Agricultural University TEL: 62738573(fax), 62738816 Email: [email_address] Http://www.cau.edu.cn/cem E-card
26. 4. Small scale and big market: how small farmers adapt to the big MKT
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31. Population of several provinces Data source: China statistical yearbook, 2010 Rural share (%) Population(10000) Regions No 10 9 8 7 6 5 4 3 2 1 42.10 5180 Zhejiang 54.00 5720 Hubei 57.90 6131 Anhui 56.80 6406 Hunan 57.00 7034 Hebei 44.40 7725 Jiangsu 61.30 8185 Sichuan 51.68 9470 Shandong 62.30 9487 Henan 36.60 9638 Guangdong
32. Population of major countries Data source: world bank 2143 Australia 6141 United Kingdom 5983 Italy 8211 Germany 6228 France 3331 Canada Population(10000 persons) Country or Region
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41. Self-logistics model: Wal-Mart supermarket suppliers Distribution center Super markets customers Distribution Information flow
42. suppliers distribution model: Carrefour Information flow Goods flows Branch of supermarket Headquarter of SuperMKT Suppliers Branch of supermarket Branch of supermarket
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51. High priority to agri & rural development (7No. 1 documents) 2004: Boost growth in farmers’ incomes 2005: Improve overall production capacity 2006: Building a new socialist countryside 2007: Developing modern agriculture 2008: Strengthening foundation of ag. infrastructure 2009: Improve ag-development & farmer’s income 2010: Integrated development of rural & urban area
Country or Region Mid-year Population (10 000 persons) World 669725 China 132466 Canada 3331 France 6228 Germany 8211 Italy 5983 United Kingdom 6141 Australia 2143