China vows to shorten supply chain of agricultural products

16:16, December 03, 2010      

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China is battling rising prices with various levels of government mapping out concrete curbing measures. China says it will make efforts to shorten the supply chain of agricultural products.

An effort to rein in rising food prices.

The Chinese government plans to boost direct supplies of agricultural products from farmers to supermarkets.

Chang Xiaocun, Director of Department of Market System Dev't, MOFCOM said "We will continue to encourage the direct supply relationship between farmers and supermarkets. The government aims to increase the share of the direct supply to over 30 percent from current level of over 10 percent from 2011 to 2015."

The Ministry's figures show that a direct supply chain can lower costs by shortening the path. As much as 15 percent can be saved.

This is a pilot project between a Walmart store and 10 thousand farmers in a Beijing suburb. The direct supply contracts are signed for agricultural products here. The supermarket says the move has effectively cut costs.

Ms. Ma, one customer said "The price is even cheaper than at some markets. For example, white turnip costs 0.9 yuan per 500 grams here, but it's 1.5 yuan at some markets."

The Ministry of Commerce says the move not only boosts income for farmers, but it's also more effective for quality control and food safety supervision.

Source: CNTV.cn

(Editor:李佳)

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