Guangzhou, Guangdong -- (SBWire) -- 07/08/2011 --On June 15, 2011, the State Council promulgated eight measures on promoting the development of logistics industry. These measures are specifically to put forward the development of agricultural products logistics and improve policies on added value tax of agricultural products, according to CCM’s first issue of China Agriculture Investment Express.

Specific measures include: to greatly develop agricultural supermarkets; break the connection between agriculture schools and agricultural enterprises; strictly implement the policies related to fresh agricultural products distribution channels; to speed up development of modern logistics concerning food and cotton. At present, the underdeveloped of agricultural products logistics has blocked the development of agriculture in China.

The measures have a great influence on logistics industry of agricultural products and that is good for China's resource integration in logistics industry of agricultural products, encourage small and medium-sized agricultural enterprises to strengthen cooperation and improve the inefficient logistics service.

The first issue of China Agriculture Investment Express also shows that the measures benefits the logistics industry related to agricultural products a lot. First of all, they are favorable for solving the problems of packing difficulty, storage and transport difficulty in agricultural products logistics industry at present. Secondly, they are expected to help reduce the cost of manufacturers of agricultural products logistics and improve the profitability of enterprises. Then, the measures will promote the reduction in prices of agricultural products, stablize the prices of agricultural commodities and guarantee security of food. Moreover, they are helpful to reduce tax of agricultural products enterprises.

At present, if the difficulties of agricultual products logistics transport are settled, it will enhance enthusiasm of farmers to plant and increase the income of farmers, promoting the development of China's agriculture. Data show that fruits and vegetable lose 25% to 30% during picking, transportation and storage in China. Based on this, there are 100 million tonnes of fruits and vegetable rotting in China each year, while the loss rate of fruits and vegetable is controlled under 5% by developed countries, especially for the US whose rate maintains 1% to 2%. What worth mentioning as well is that the loss rate for grain accounts for 12% to 14.8% of total output.

Expert said that, low efficiency of the agricultural products logistics hinders the development of Chinese agricultural industry. In the long run, this measures promulgated by Chinese government are beneficial to strengthen the international competitiveness of domestic agricultural enterprises, improve the products and services of agricultural products in China, increase the investment in logistics industry related to agricultural products and improve the logistics network of agricultural products.

Source: China Agriculture Investment Express July 2011

Content of China Agriculture Investment Express July 2011:
8 measures promoting China agricultural products logistics
Policies on foreign investment in China stricter
Laws and regulations on food safety accelerate M&A in food industry
Phosphorus ore resource draws wide attention
M&A to continue in feed industry
M&A in global agricultural industry increasing
Two listed pesticide companies transformed into mining corp.
Major domestic M&A in pesticide industry
Shandong Kingenda seeks M&A
COFCO further strengthens and expands wine market
Bright Food shows ambition in domestic and overseas M&A
Longping High-Tech: road to industry consolidation
China BlueChemical to strengthen profitability through acquisition
……

China Agriculture Investment Express, which is a bi-monthly newsletter published by CCM International Limited, offers timely update and close follow up of Chinese agricultural industry, analyzing market data and trends, as well as related policies. Major columns include policy and legislation, industry dynamic, company dynamic and price update.

If you are interested in July issue of China Agriculture Investment Express, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

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