Shandong’s Agricultural Exports Win the World’s Trust

Efforts have also been made to establish a traceability system. Using modern information technology, data are kept on every plant from seed to sale.

In order to improve oversight, government agencies have divided the critical tasks of agricultural supervision. New measures have been set in place to guarantee that regulations are executed and dangerous products are controlled.

Establishing a Production Quality Credibility System

To instill in local businesses a stronger sense of discipline and social responsibility, the Shandong provincial government has sponsored educational programs in management, law and ethics for agricultural exporters. Shandong’s regulatory agencies have joined efforts with other branches of the provincial government to set up a complete system of supervision and oversight to guarantee fair and credible business practice. Mechanisms have been set up to allow the public to report business malpractice, allow corporations to appeal against punishment, reward credible businesses and punish those with poor records. An information sharing system has also been initiated. Meanwhile measures have been taken to enhance government oversight as well as self-discipline by agricultural businesses.

Tapping the Global Market with Multiple Approaches

Shandong has welcomed many world-famous brands and agricultural products, hoping to penetrate the international market and export its produce globally. The province also imported new breeds and technologies to increase local exports. The goal is to grow products that are in demand abroad. By marshalling its resources, Shandong has fostered a group of flagship exporters with large scale and influence. It is also cultivating distinctive agricultural brands that are expected to boost the prestige of Shandong’s exports. By coordinating knowledge of market trends and commodity information with local enterprises, it is helping to open foreign markets in an intelligent way.

A Boon for Both Domestic and International Consumers

Shandong runs many quality demonstration zones for agricultural exports. The province has developed a plan for such areas to team up with local supermarkets, which will procure produce from these demonstration zones. So far over 70 franchised stores have joined in, cooperating with over 2,400 agricultural cooperatives and purchasing 40 percent of stock directly from them. Such partnerships are a win-win-win deal: 670,000 hectares of demonstration zones find stable customers, supermarkets cut their cost by about 10 percent, and consumers have more reliable food.

Shandong’s export-oriented farms are now better organized and managed. At present 532,000 hectares are being farmed for export in line with standardized production procedures, and there are 1,849 standardized animal farms across the province. These involve all of the province’s major agricultural exports. Forty-five of the leading national agricultural companies and 258 of the provincial ones are centered in Shandong. Companies licensed for food export produce 22.7 percent of the national total, and local food producers who have registered abroad make up 24.35 percent of all such companies nationwide.

Thanks to these efforts, the reputation of Shandong’s agricultural exports is growing globally. With support from the Ministry of Commerce, the province has held successful promotion activities in such cities as Tokyo, Osaka, Paris, London, Toronto, and Geneva. Meanwhile it has accelerated product certification and many local products, such as Longkou starch vermicelli and Jinxiang garlic, have been approved.  

Like other Chinese industries, Shandong’s agriculture has expanded its presence abroad. By the end of August, 2014, Shandong had approved the establishment of 126 overseas agricultural corporations with a total investment of US $2.63 billion from the Chinese side. The businesses include cotton, rubber and vegetable planting, fishery, timber processing, and textiles. Enterprises are in over 30 countries and regions, 13 of them based in Russia, with a total Chinese investment of US $590 million. They can process 720,000 cubic meters of timber annually, and create around 3,000 jobs for local residents. The two largest Chinese ventures in Russia are the China-Russia Forestry Cooperation Plan Phase I and the Tomsk Timber Industry and Trade Cooperation Zone, with a planned investment of US $680 million.  

ZHANG LIJUAN is a journalist with China Report.