BIZCHINA / Investment Alerts
Cross-Straits projects planned for agriculture
By Zhan Lisheng in Guangzhou and Li Dapeng in Fuzhou (China Daily)
Updated: 2006-04-19 06:23
Policies and development plans for closer agricultural co-operation with
Taiwan are being drawn up by officials in South China's Guangdong
Province and East China's Fujian Province.
Cheng Ganrong, an official with Guangdong's agricultural department, told
China Daily yesterday the province will set up experimental zones for
agricultural schemes in the cities of Foshan in the Pearl River Delta and
Zhanjiang, in the west of the province.
He said it was part of the 15 measures outlined by the Communist Party of
China during the Cross-Straits Economic and Trade Forum held last week in
Beijing.
The official said the province would announce favourable policies to
attract more Taiwan business people to invest in its agricultural sector.
Guangdong is considering setting up a zone for Taiwan farmers' investment
in the city of Jiangmen, where many Taiwan farmers have already set up
projects.
Cheng said that an association would be launched this year to facilitate
cross-Straits agricultural exchange and communications.
"The association is expected to serve as a platform for agricultural
communication and co-operation between Guangdong and Taiwan and for the
introduction of agricultural professionals and management mechanisms from
Taiwan," he said.
Taiwan-funded agricultural enterprises have helped the province greatly
boost its agricultural development, said Cheng.
New technologies and facilities have invigorated and modernized the
agricultural sector in the province, he added.
Official statistics indicate that Taiwan business people have set up more
than 1,000 agricultural enterprises in the province and their investments
have surpassed US$1 billion since the early 1990s.
Popular locations for their agricultural investments are the Pearl River
Delta Region cities as well as Zhanjiang, Maoming and Zhaoqing in the
west of the province.
Most are involved in the development of orchards, floral cultivation and
poultry farms.
At a forum held recently in Foshan, Li Ronggen, vice-governor of
Guangdong, said that the province would like to strengthen co-operation
with Taiwan in the processing of agricultural products, in agricultural
production, marketing and sales, international trade, and new
technologies.
The vice-governor said that the Guangdong-Taiwan agricultural
co-operation is an important element in the province's 11th Five-Year
Plan (2006-10).
According to Zhuang Xiujuan, a professor with South China University of
Agriculture, the Guangdong-Taiwan agricultural co-operation will be good
for both sides.
Guangdong boasts a similar climate, an excellent investment environment
and huge market, and adequate supplies of land and labourers, she said.
The expert suggested that the agricultural sector of the province could
learn more about agricultural management and marketing from Taiwan
business people, in addition to their planting know-how.
In Fujian, the provincial government is making efforts to expand the
cross-Straits experimental zones for agricultural co-operation in the
cities of Fuzhou and Zhangzhou to the whole province this year.
The province's contracted investment from Taiwan in agricultural projects
is expected to reach US$120 million this year.
Wang Jianwen, vice-director with the administrative committee of the
development park for Taiwan farmers in Zhangpu of Fujian Province, said:
"Thanks to the central government's support to our park, we are trying to
build it into a new platform for Taiwan farmers developing in the
mainland."
Twelve Taiwan-based companies have already entered the park, which has a
planned final area of 667 hectares, to begin their operations, with a
total investment of US$15 million.
Lu Zhuang-chuan, a man from Taiwan now operating his farm in a similar
environment, Fuzhou Development Park for Taiwanese Farmers, said: "There
is no problem on the distribution of my products, but the output in my
farms is still short for demand."
Lu has decided to rent 15 more hectares of farmland this year in addition
to his present 15 hectares to make up for losses caused by the two strong
typhoons that hit Fujian last year.
"The cost in labour and transportation here is only about one-third of
that in Taiwan, so our products are very competitive," said Lu.
According to statistics, Fujian had approved 1,783 agricultural projects
invested in by Taiwan business people by the end of 2005.
(For more biz stories, please visit Industry Updates)
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