| Farm
produce brokers playing increasingly important role (11/07/2002)
Shanghai's most famous farm produce broker, Zhao Sanbao, turned
up at the Hongqiao Airport right at 4: 00 a.m. Thursday, to ensure
that his millions of fresh shrimp got safely on board.
More than 10 percent of aquatic products in Shanghai, one of China's
biggest cities, are brokered by Zhao's agency.
He says things have changed dramatically since the 1980s when he
had to travel to bazaars and harbors where fishing boats gathered
just to get a small basket of fish or shrimp.
Zhao is one of the first farm produce brokers in China. Most brokers
are former farmers or fishermen who started out peddling their wares
on foot.
The sale of farm produce was a monopoly of the government and state-run
enterprises until the mid-1980s.
Up until then, farmers and fishermen had been banned from selling
products to private dealers. Brokers like Zhao Sanbao were considered
illegal and were hunted down by government administrative bodies
for industry and commerce.
The country deregulated the aquatic produce market first in 1985,
and then the market for other farm produce such as fruit, vegetable
and meat.
However, the sale of grain and cotton have not yet been completely
deregulated. Farmers are required to sell a certain amount of their
output to the government, and the rest is allowed to be sold freely.
In northeastern Jilin Province, one of China's major grain- growing
bases, thousands of farm produce brokers have helped farmers sell
their products to the other parts of the country or even export
it to Japan and the Republic of Korea.
Two years ago, the Chinese government made clear that farm produce
brokers and non-governmental brokerage agencies have become major
driving forces in the restructuring of the agriculture sector.
Zhao set up his brokerage agency last year, the first of its kind
in Shanghai. His business now covers a vast area from northeast
China's Heilongjiang Province to south China's Guangdong Province.
He even has clients from Taiwan.
There are 900 million farmers in China but only 140,000 rural associations
helping them sell their products. Brokers like Zhao are playing
a very important role with regard to farmers' needs.
The municipal government of Shanghai plans to support the establishment
of 100 brokerage agencies like Zhao's over the next three years.
"Farmers' income will rise with the increasing sales of farm
produce, which, in turn, helps to stimulate overall domestic demand,"
said Li Yining, a renowned economist.
Lu Shunzhu, a former individual broker who dealt in chili for many
years, invested 1.5 million yuan (181,000 US dollars) to set up
a brokerage agency in Jilin. A number of local farmers have signed
contracts with his company.
"A brokerage agency is more credible than individual brokers,"
said Chen Xiangjiu, a local farmer. "A company is easier to
locate. "
Chen was referring to farmers' fears of being cheated by brokers
floating from one village to another.
Despite this, most farm produce brokers in rural areas still work
individually, and there is no specific legislation to regulate their
activities.
The government is encouraging more brokers to participate in rural
cooperative associations founded by farmers to sell their produce,
said Ju Chuanlian, an official from the Ministry of Agriculture.
(xinhua)
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