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The Advanced Agriculture Market in China

In recent years, the advanced agriculture generally comes into the public eye and grows rapidly because of its high productivity with high quality. As a historical agricultural country with largest population in the world, China is always seeking after the new methods in agriculture so as to make the progress. From the advent of hybrid rice to the automation technology widely used in irrigation, harvest and soilless culture, China has already been hardly working on the direction of advanced agriculture. Nowadays, the advanced agriculture in China receives more and more attention as the increasing food demand  calls for it. Meanwhile, the plants grown by advanced agriculture have gradually enjoyed warm welcome while various distribution channels and government’s policies help to make the advanced agriculture become the major force in the following decades.

Increasing food demand calls for advanced agriculture in China

China gradually abandons the traditional farming methods by applying more technologies in order to develop advanced agriculture throughout the whole country.Precision agriculture and expert system help to increase the resource utilization and improve the agricultural efficiency. Automation machines are applied to liberate the agricultural labor force to some extent. The vertical farming system is introduced to feed the burgeoning urban population. Lots of other new technologies are now researched in the universities to satisfy the rising needs of advanced agriculture.

Why is China so fascinated in expanding advanced agriculture? Let’s have a quick look at some figures. Agricultural land in China diminishing 300 every year due to natural disasters and poor land management while population will reach 1.5 billion in 2030. The growing demand for food urges China to enhance the productivity. However, Chinese agriculture is losing labor since 80% of the population will live in cities by 2050. Thus advanced agriculture with the application of hi-technology becomes the best solution to solve the problem of efficiency.
Premium plants raised by advanced agriculture receive warm welcome

Premium plants like vegetables or fruits at a high quality which are raised by advanced agriculture have received a warm welcome, especially among the middle- to high- income customers.

Imported fruits are thought to be safer and have higher quality, which sells best among the premium plants. These fruits often claim to be purely natural and pollution-free as foreigners have advanced cultivation techniques.Ole is a high-end supermarket who offers imported fruits to customers with relatively high incomes. It has opened more than 40 stores in over 20 cities for just 11 years and has strong growth in the annual transaction. Another example is that China’s second largest e-commerce company, JD.com, just invested US$70 million in an importer of fresh products, FruitDay.Boutique markets like Ole or FuritDay springing up meet the citizens’ growing needs of high-quality life. The same thing happens to organic vegetables without pesticide because people think the organic one can provide a healthier diet. Accordingly, the shelves of organic vegetables, as well as their varieties in the supermarket, have been expanded.

What people concern now is not that they lack money but the quality of products in the market. They are willing to expend more money to get better products because these are what we eat every day and important for health. Therefore, the premium plants will definitely have more market in China for the following decades with the rising attention of healthy life, which leads to the development of advanced agriculture in China.

Various distribution channels help to promote

There are now plenty of different distribution channels existing in China, which make people easier to buy premium agricultural products. Supermarkets are everywhere especially in the first- and second- tier cities, where people can buy imported products or domestic organic ones. Special high-end markets focusing on fresh products gain great popularity due to their profession. Online shopping centers like TMALL (Taobao Mall -In Chinese 天猫) and JD.COM (JingDong Mall – In Chinese 京东商城) have cooperated directly with many foreign producers in order to provide customers with fresher and quicker products. Meanwhile, local markets situated near neighborhoods also offer local organic products to their loyal customers. Thanks to these various distribution channels, people now can get the fresher and healthier products of advanced agriculture easier and quicker.

Government’s encouragement brings the confidence

Early in 2012, the Chinese government has put forward the plan to construct the advanced agriculture. In order to reach the goal, the government encourages introducing foreign advanced technology so as to improve the production level of Chinese agriculture. Many delegations have been sent to foreign countries like U.S and France to learn their advanced technologies applied in agriculture and bring them to China. Universities or research institutions are also invested heavily in developing Chinese advanced agriculture. Furthermore, the built of Shanghai Free Zone facilitate foreigners’ investment in Chinese advanced agriculture and it’s an explicit signal from the Chinese government to attract more international capital and technology as well. These series of actions shows the government’s determination in developing agriculture in order that all the Chinese people will live a life with sufficient fresh, clean and healthy food.

Advanced agriculture is the trend and China is already on its way. With the help of technology and government’s incentives, advanced agriculture has no doubt a bright prospect. Following the pace of development in agricultures, various distribution channels will constantly promote its products and thus people will gradually take premium products of advanced agriculture as their first choice.

Daxue consulting Expertise

Daxue Consulting can provide you support in entering the growing agricultural market in China. We conduct all the market research and consulting services you may need, such as store-checks, retail analysis, implementation feasibility, market survey etc. To know more about agriculture in China, do not hesitate to contact our dedicated project managers by email at dx@daxueconsulting.com.

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