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People's Daily Online>>China Business

China's agricultural sector faces low profit margins

By Jiang Feng (People's Daily)

15:26, January 12, 2012

Edited and translated by People's Daily Online

The main risks of investing in China's agricultural sector include low profit margins, high dependence on natural factors, and unclear policies involving factors of production, according to a report.

The report “2011 Report on Investment in China's Agricultural Sector" is jointly released by China Rural Technology Development Center and Yangling Agricultural High-tech Industries Demonstration Zone.

It provides an overview of the investment in China's agricultural sector and initial public offerings (IPOs) launched by Chinese agriculture companies from 2006 to 2011, and evaluates future investment opportunities and risks.

From 2006 to the first half of 2011, the number of investment deals in China's agricultural sector totaled 114, of which, 104 deals disclosed a combined investment amount of nearly 1.8 billion U.S. dollars.

Investments in the China’s agricultural sector hit a record high of 891 million U.S. dollars in 2010, with 47 deals completed. In addition, agricultural investment is more concentrated in eastern regions than in central and western regions.

According to the report, related government agencies should promote investment in the agricultural sector through tax incentives for agricultural investment, establishment of high-tech agricultural business incubators, and government guidance funds.


Leave your comment2 comments

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wende at 2012-01-1371.255.83.*
How did the inflation on food prices come about when farmers are getting less profits?
helen at 2012-01-12175.142.223.*
Agriculture in China is one of the most important industry facing the Chinese government and the CPC.Only right to help these farmers through subsidies - fertiliser, monetary rewards, social ameneties .....Self sufficiency in food is of utmost importance and the rural folks are working hard to provide for the urban Chinese.

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