Research Reports
A Study on Changes of the Main Production Areas in Chinese Agriculture
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AuthorJeon, Hyoungjin
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Publication Date2008.11.01
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Original
Agricultural trade between Korea and China has increased rapidly since they formed the bilateral diplomatic relationship in 1992. As a result, Chinese's share in the Korean agricultural import market has progressively expanded.
The purpose of this study is to analyze the domestic demand and supply situations of some main agricultural products as well as to trace the changes in their main production areas in China. Ultimately, this study try to derive some policy implications from the analyses.
Some research findings from this study are as follows;
First, the core factor of the change in the main production area is natural and geographic conditions for most products in China. As the market economy expands, however, the relative profitability has become an important variable which has significant consequences in the farmers' decision making.
Second, agricultural policy factor is still important until nowadays in China. The 'Geographical Distribution Planning of Advantageous Agricultural Crops' which Chinese government has introduced since 2003 affected the formations of main production areas and their changes for most agricultural products. China tried to facilitate the concentration of some agricultural products in the main production areas through the boosting policies. In those areas, the agricultural industrialization models of "Leading Enterprises, Production Base and Farmers" appeared and developed the qualities as well as the competitive advantages to make it exporting industries.
Third, Northeast of China, especially Heilongjiang province, is specialized as the main production area of medium and round grains of rice. Thus, it may be potential threat to the Korean rice industry with regard to the tariffication of rice sometime in the future. Korea need to respond strictly when it comes to have negotiations for FTA with China in considering the effects on rice industry.
Fourth, the importance of monitering and tracing the market situations in China has increased as the import dependency ratios of corn and soybean from China are rising recently. Korea also needs to diversify its import partners other than China for the stable supply of these grains.
Fifth, Korea imports some spicy vegetables most of which are produced in the large-scale vegetable exporting bases at Shandong province in China. If it is inevitable for Korea to import them from China for the stable domestic supply of spicy vegetables, it should emphasize the safety rather than the quantity of imported vegetables. That's why Korea need to consider the possibilities of establishing quarantine office at the main production areas in China to enhance the safety of importing vegetables.
Finally, Korea may benchmark Chinese's models of the agricultural industrialization projects to intensify the linkage of agriculture and food industry. The agricultural industrialization policies are vitalized at the main production areas of each item in China.
Researchers: Hyoung-Jin Jeon, Myong-Keun Eor, Jing-Hu Li
E-mail address: hjchon@krei.re.kr
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