No

    No.1DocumentFuelsSeedIndustry ;鏊

    ;Agriculturaltechnologybecomes ;akeywordofthisyear

    ;Agriculturaltechnologyhasbe—

    ;comethekeywordsduringrecentag- ;riculturaldevelopments.ChenXiwen, ;directoroftheofficefortheCPCCen- ;tralCommittee’sLeadingGroupon

    ;Rural厂.rkemphasizedonmanydif-

    ;ferentoccasionsthatitisverydi伍cult

    ;toincreasethegrainproductionsimply ;throughmorematerialinput.The ;importanceistomakeuseoftheavail- ;ableagriculturalresourcestoaccelerate ;institutionalreformandself-innovation ;oftheagriculturaltechnology,andraise ;thecontributionratiooftechnologyad—

    ;vancementonagriculturalproduction. ;OnDec.26,2011,thedaybefore

    ;theCentralAgriculturalH厂Drking

    ;Meetingwasheld,theMinistryof ;Agricultureissuedthe”12thFive-Year

    ;PlanfortheFarmingTechnologyDe—

    ;velopment’thesignificanceofwhichis

    ;immenselyprofound.

    ;1heNo.1Documentstatesthat

    ;toensurethestableandsustainable ;developmentofagriculture,andad—

    ;equatesupplyofagriculturalproducts, ;thetechnologywouldbethefunda—

    ;mentalwayout.The~rmingtechnol—

    ;ogyconstitutesthebasisfornational ;grainsecurityandistheinevitable ;choiceforremovingtheobstaclesthat ;fettertheresourceandenvironment.It ;isthedrivingforcethatspeedsupthe ;buildingofmodernagriculture,being ;distinguishinglycharacterizedbyits

;publicserviceandsocialbasicfunc—

    ;tions.

    ;ThedevelopmentChinesefarm—

    ;ingindustryisindireneedofthe ;technologysupport.Therecentyears ;havewitnessedaworseningrestraint ;onarablelandsandwaterresources,as ;wellasanincreasingdemandongrains ;andothermajoragricukuralproducts, ;whichposedheavyburdensontheag- ;ricultura1development.Inthelongrun, ;Chinawillfaceashrinkingarable1and, ;transferoflaborforce,continuously ;highlaborandagriculturalproduction ;ByChinaSecuritiesJourna

    ;costs.~hereforeitisveryimportantto ;speedupthe~rmingtechnologycon—

    ;structions.

    ;Someexpertssaythatthepurpose ;ofthe~rmingtechnologyinnovation ;istoraisethe~rmlandoutputcapacity, ;resourceutilizationefficiencyand1abor ;productivity,andputanequalfocuson ;raisingproductivityandefficiency,com—

    ;bineseedenhancementandplanting ;methodimprovement,andagricultura1 ;machineryand~rmingprocess;thedi—

    ;rectionistopromote~rmingtechnol—

    ;ogyintegration,mechanizationofthe ;workingprocessandinformation—based

    ;productionandoperation,andcreate ;atechnologica1systemthatenhances ;productivity,qualityandefficiency, ;andprotecttheecologicalenvironment ;andproductionsecurity.Thebreak_ ;throughpointoftechnologyinnovation ;liesinthecloseattentiontofront-line ;technology,thesatisfactionofindustry ;s囫

    ;demands,aswellasacombinationof ;researchandproduction.Theresearch ;staffshal1dotheirthesispapersduring ;neldpracticesandsharetheachieved ;accomplishmentswithcommonfarm—

;ers,toclosethegapbetweentechnol—

    ;ogyandrealproduction.

    ;Underresourceconstraint,the ;developmentofagriculturaltechnology ;willfirstrelrontheincreaseofproduc—

    ;tionperunit.Itispredictedthatthe ;seedandfarmingmachineryindustries ;wil1benefitfromsuchatrend.Take ;cornforexample,intheU.S.thecorn ;yieldpermuisabout6,000,whilein ;Chinathebestyieldisabout4,200 ;andtheaverageis3,600,60%ofthe ;U.S.average.Suchalargegapcould ;onlybemetthroughseedenhancement ;andimprovementoftheagricultural ;mechanization.Thenthefarmingma—

    ;chinesandtheagriculturalprocess,and ;thevarietyandtechnologycouldbe ;combined.Therefore,itisver,,urgent ;todeveloptheagriculturaltechnology ;basedonseedenhancementandfarm—

    ;ingmachinery

    ;Seedtechnologyinnovationmight ;bethebreakthroughpoint

    ;China’sseedindustrymarketis

    ;verylarge.SinceChinabecameamem—

    ;bercountryofWTO,theChineseseed ;industryhasundergonearapidgrowth ;anditsseedmarkethasbeenexpanding ;rapidiv.Thetotalproductionvalueof ;theseedindustryhasincreasedfrom25 ;billionguanin2000to55billionyuan ;in2008.Astheseedmarketbecomes ;morematureandtheindustryfurther ;develops,themarketvalueisexpected ;tohit100billionyuaninthefuture. ;1eyear2011marksanewmilestone ;inthedevelopmentoftheseedindustry. ;TheStateCouncilissued”theOpinion

    ;onAcceleratingtheDevelopmentof ;theModernSeedIndustry’’’clarifling

    ;thestrategicandimportantposition ;andalsothefuturedevelopmentdirec—

    ;tionofthemodernseedindustry.The

    ;documentalsoraisedthedevelopment ;thoughtsof”basingoncorporations

    ;andintegratingseedbreedingandpro—

    ;motion.’’TheChineseseedindustryis

    ;embracinganunprecedenteddevelop—

    ;mentopportunity.

    ;Recentlyaseriesofpolicymea—

    ;sureshavebeenmadetobolsterthe ;seedindustrydevelopment.TheMin—

    ;istryofFinancehasagreedtosetupa ;developmentfundfortheseedindustry; ;theStateAdministrationofTaxation ;hasmadespecificregulationsonthe ;exemptoftheincometaxofcompanies ;featuring”integrationofseedbreeding

    ;andpromotion”;ChinaDevelopment

    ;田CS

    ;Bankrequiredallitsbranchestopro—

    ;videmorefundingsupportfortheseed ;industrydevelopment;whiletheAgri—

    ;culturalDevelopmentBankofChina ;willprovidebenchmarkinterestrate ;servicethatfavorstheloansforseed ;purchasesofrelatedcompanies. ;The”12thFive-YearPlanforA一

    ;culturalTechnology’’willhaveitsmain

    ;aimas”makingbreakthroughsinvariety

    ;breedingwithgreatapplicationvalues ;andintellectualpropertyrights,raising ;thecorecompetencyoftheagricultural ;plants”.Theplanwillalsostressgreat

    ;foCUSon”newvarietynourishment”and

    ;encouragetheexpansionofseedcompa- ;nieswithlargescale,strongcompetitive—

    ;nessandgoodgrowthprospect. ;Researchersfromsecurities

    ;tradingcompaniessaythatthegood ;seedsubsidyandtheincreaseofgrain ;purchasingpricehavestimulatedthe ;growthofdemand.Ontheonehand, ;thegovernmentisraisingdirectsub—

    ;sidrandgoodseedvarietysubsidyfor ;farmersbyalargemargin.In2003,the ;nationalgovernmentallocated300mil-

    ;lionyuanasgoodseedvarietysubsidy, ;whilethesubsidyhasincreasedto22 ;billionyuanintheyear2011,which ;lowersthecostsforfarmers.

    ;Ontheotherhand,theriseof

    ;grainpurchasingprice,especiallythose ;grainvarietiesspecifiedbypurchasing ;companies(thepricewillbe10—20%

    ;higherthannormalprice),whichen- ;couragesfarmersinitiativeotgrowmg ;goodseedvarieties.Asfarmerstendto ;growsevera1widelypromotedvarieties, ;theseedproductsofcompetitivecom—

    ;panieswillmeeta”demand—exceed—

    ;supply”situation,whichwouldfurther

    ;lifttheseedprice.

    ;Thekeytopromotingthetechnol- ;ogyinnovationoftheseedindustryis ;tomakingquickbreakthroughinseed ;varietydevelopmentandbreedinga ;groupofflagshipcompanieswithgreat ;competitivenessintheglobalmarket. ;Theinnovationoftheseedindustry ;technologyliesinthesupportofseed ;companiesfeaturing”integrationof

    ;seedbreedingandpromotion”,andthe

    ;quickestablishmentofanewcommer- ;cialseedbreedingsystemwithcompa- ;niesasmajorsubjects.Theinnovation ;shallmakedemandsasitsguidance,a ;particularvarietyasthebasicunit,the ;industrychainasitsmajorvehicle,to ;letcompaniesbecomethemajorplayers ;fromR&Dinvestmenttoresultappli—

    ;cation.Undersuchabackground,those ;flagshipcompanieswithgreatadvan—

    ;taresinseedresearchanddevelopment, ;cooperationwithresearchandscientific ;institutionsandmarketing.

    ;]口1eNo.1documentplacesfarm—

    ;mgtechnologyonacorporatetooting, ;optimizesdistributionofseedcompa—

    ;nies,raisesmarketaccessthresholdand ;issuesaseriesofpolicymeasuresthat

    ;favorflagshipcompanies.Expertsin ;thefieldsaythatwiththeaimof”sup—

    ;portingthesuperiorandthestrong”,

    ;domesticlistedcompaniesthatmight ;benefitfromsuchpoliciesinclude: ;LongpingHigh—tech,DenghaiSeed,

    ;FengleSeed,anyinHigh—tech,

    ;DunhuangSeedDabeinongnxi—

    ;angDenongandShennongDafeng. ;Aneraofmechanizationfor

    ;farmingproduction

    ;TheNo.1documentalsopoints

    ;outthattospeedupthefarmingmech—

    ;anization,itisnecessarytoexpandthe ;operaionareaandimprovetheservices ;ofagriculturalmachines.1-hatistosay, ;progresshastobemadeinthenumber ;ofagriculturalmachineaDplicationand ;alsotheleveloftechnology.

    ;ThealreadyPublicized”12thFive—

    ;YearPlan”foragriculturalmachines

    ;alsopointsoutthatasof2015,thetotal ;outputofagriculturalmachineswill ;reach1billionkilowatt.Thenumber ;otmajoragriculturalmachineryequ1p—

    ;menthasbeenincreasingsteadily,the ;structureisfurtherimprovedandre—

    ;giona1developmentmorecoordinated. ;Majorbulkagriculturalproducts, ;includinggrain,cotton,oilseedand ;sugar,haveexperiencedahigherlevel ;ofmechanization.Andmorethan60% ;ofthefieldshavebeenplantedbyma- ;chinesf52%attheendofeleventhfive—

    ;yearperiod1.Newbreakthroughshave ;beenachievedinricetransplantingand ;harvestingofcorn,cotton,oilseedand ;sugarcane.Thegrowthofmajoragri—

    ;cukuralproductshasbeenfullvmecha- ;nizedandthemechanizationofhus—

    ;bandryandaquiculturehasimproved ;marked

    ;Statisticsshowthatduringthe ;11thFive-YearPlanperiod,therev—

;enueofChina’sagriculturalmachine

    ;industryhadincreasedfrom112.98 ;to265.56billionyuan.increasing ;bv135%andthecompoundannual

    ;growthaveragereaching18.6%:the ;operationprofitshadraisedfrom4.71 ;to18.46billionyuan,increasingbya1_ ;most300%andthecompoundannual ;growthaveragereaching31.4%.Also ;atthesametime,themechanization ;rateofagriculturalplantinghasfor ;the矗rsttimesurpassed5O%.hitting ;52.3%.indicatingthatthemachine—

    ;basedproductionmethodhastakena ;majorroleinagriculturalproduction ;andtheChineseagriculturalproduc—

    ;tionmethodisembracinganeraof ;agriculturalmechanization.

    ;What’smore,theNo.1docu—

    ;mentstressesemphasisonenhancing ;thepromotionofagriculturaltechnol- ;ogy’:mprovlngagriculturalmachinery

    ;promotionservice,resolvingthe”last

    ;mile”problemandraisingagricultural

    ;technologyleve1.Thedocumentalso ;callsforafurtherdevelopmentofnew ;agriculturalsocialserviceorganizations, ;tosupportagriculturalcooperatives, ;supplyingandmarketingcooperatives, ;farming-relatedcompaniesandagricul- ;turalprofessionalserviceorganizations. ;IndustryexpertssaythatintheA—share

    ;market,companiesthatpromoteagri—

    ;culturalmachinesincludeShanghui—

    ;longShareandJifengAgricukuralMa- ;chinery.Companieslikethesewillhave ;abrightfutureofgrowth.@

    ;Chinas1stPoticyDocumentinReview ;Overthepasteightyears,thisgovernmentpolicydocumenthasbeenkey

    ;ineffectingreformanddevelopmentofChina’sexpansiveruralsector.

    ;TheNo.1centraldocumentisthefirstpolicydocumentreleasedbyChi—

    ;na’scentralgovernment,atthestartofeveryyear.Btitlater,itbecameknown ;asapolicyguidanceonarchitecturalandruralissues.From2004to2011,the

    ;documenthasplacedemphasisonthreemajoragriculturalissues.

;In2004,thefoCUSwasincreasingfarmers’incomes.

    ;In2005,thespotlightwasplacedonimprovingagriculturalproduction ;capacity,aswellasimprovingruralinfrastructureandtechnology. ;In2006theemphasiswasoilpushingforwardrul-alareastowardsa’’new

    ;countrysidescheme’’.

    ;In2007thefocusevolvedtothedevelopmentofmodernagriculture,in ;thetechnologyandbusinessmodeltoimproveproductionefficiency. ;In2008thefocusshiftedtofurtherconsolidatinginfrastructure.butadd—

    ;ingallitemtoimprovethepublicservicestandard.

    ;In2009thefoCUSshiftedtomaintainingstableeconomicgrowthinrural ;areas:optimisingproductionstructure:andaddingmoreinvestmerit.Thedoc—

    ;umentalsoemphasizedthesufficientsupplyofprimaryagriculturalproducts. ;The2010no.1centraldocumentfurtherconsolidatedthepreviousyear’s

    ;guidance.Forthefirsttimethedocumentguaranteedthetotalamountofin- ;vestmentforagriculturalissues.andensuredinputproportionswillimprove ;steadily.Also.itwasthefirsttimethegovernmentdecidedtoensurenorural ;areawouldbeleftwithoutfinancialservices,andthatmorefundswouldbe ;madeavailablefromagriculturalbanksforagriculturalprojects. ;Lastyearwasthefirsttimethedocumentfocusedonwaterconservancy ;andirrigationprojects.

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