A year-end feature: China's exports of Agricultural produce Hit New
            Record High

            In 2006, Chinese agricultural export products realized a fast growth
            by overcoming the pressure from both foreign technical barriers and
            a rise in production cost. The annual agricultural products export
            hit 31.03 billion US dollars, a 14.1% increase over last year. This
            set a new record for Chinese agricultural products exported with its
            4 features:

            Firstly: exports of competitive agricultural produce increased at a
            high rate, export mix further optimized, export earnings up.

            Horticultural, aquatic and marine products, as well as other
            advanced agricultural products were exported at a high rate and
            increased China’s export volume tremendously during this period of
            time. Over the first 11 months of 2006, Chinese gardening products
            reached 7.91 billion U.S. dollars, resulting in an increase of 21.5%
            over last year. Aquatic and marine product exports rose to 8.05
            billion U.S. dollars, again resulting in a 19.5 % growth. These two
            advanced agricultural commodities achieved 15.96 billion U.S.
            dollars, accounting for 57.4 percent of the total export market of
            China. The net result showed 2.8 billion U.S. dollars more than last
            year pulling up agricultural exports by ten percentage points.

            Deep-processed agricultural products took up the greatest amount of
            the export commodity structure, and were still optimized better over
            last year. From January to November, primary and deep-processed
            agricultural products reached 14.36 and 13.44 billion U.S. dollars,
            which was an increase of 6.7 and 23.1 percent respectively, over
            last year total. These combined exports took up 48.3 percent of the
            total agriculture product volume, thus raising the growth by 3.5
            percentage points.

            Export volumes and profit continue to go up; and the benefits were
            greatly improved. Over the first three quarters of 2006, the
            production price index of Chinese agricultural products decreased by
            0.27% points. In addition, the agriculture export price index
            increased by 4.7 percentage points over the first 11 month. There
            were eight major export commodities including: garlic, apple, apple
            juice, mushroom and so on, which had a rise in price of more than 20
            percent.

            Secondly, the occident market was increased at a fast pace. With the
            decline of the Japanese market, the entire China export market
            needed to be diversified.

            With inclusion of gardening, aquatic and marine products, the
            occident market developed rapidly. From January through November of
            2006, the China gross export total to the U.S. reached 3.38 billion
            U.S. dollars. This was an increase of 34.1%. In comparison, EU
            totaled 39.2 billion dollars and a 25.4% increase over last year.

            Affected by the ‘Positive List System’, Chinese export amplitude to
            Japan dropped significantly. Over the first 11 months of 2006,
            Chinese agricultural products exported to Japan attained 7.45
            billion US dollars. This resulted in a 3.7 percent increase, which
            is lower than the 9.4 percent of last year.

            A burgeoning and robust market emerged, encouraging China’s exports
            to be more diversified. From January to November, China exports to
            west Asia, Latin America, and Russia accounted for over a 20%
            amplitude increase. These exports represented 19.4 percent of the
            total Chinese gross export business, one percentage point higher
            than the ‘10 TH five- year’ session.

            Thirdly, major export provinces and cities enjoy a steady
            development, seven of which accounted for 70 percent of the gross
            export. Several other Midwest provinces and cities also expanded
            their export markets at high rate.

            Over the first 11 months, the cities of Shandong, Guangdong,
            Zhejiang, Fujian, Liaoning, Jiansu and Beijing exported over 1
            billion US dollars, taking up 71.3% of the agricultural products
            gross export. Jiangsu, Fujian and Shandong’s export value increased
            respectively by 32.3%, 23.0% and 17%

            Fourthly, private enterprises became the new growth targets for
            exports. This activated management entities into leading
            agricultural products for export enterprises.

            From January to November, private enterprises hit 8.37 billion US
            dollars; increased by 40.8 % over last year. Agriculture products
            gross export was raised by 10 percentage points.

            In 2006, Chinese agricultural products overcame some disadvantages.
            More rigorous foreign technical barriers and continuous rising
            production prohibited success. Profits came from three areas.
            Firstly, the Ministry of Commerce and other sections implemented a
            series of policies and measures to improve agricultural
            productivity; secondly, every region sped up the transformation of
            foreign trade growth, to promote the agriculture export business;
            thirdly, export enterprises built-up their international competitive
            power and ability to break down foreign trade barriers. Safety
            standards were implemented, which resulted in improved quality.

            At present, China exports still face challenges from long term
            foreign technical barriers. Over the past two years, Japan, Europe
            and U.S. have all quickened their procedures in food security
            legislation; continuing unfair competition among international
            products trading will exist for a long time. China’s low
            agricultural products processing level, weak ability to innovate in
            technology and lack of brand products result in the fact that half
            of china’s export agriculture products are only primary products. It
            is believed that researches on new breeding and the ability to
            increase technical innovation should be further strengthened to meet
            the diversified demands of the international market.

            In 2007, Ministry of Commerce will continue to pay attention to the
            issue of rural areas, farmers, and agriculture. They will spare no
            effort to enact innovative policies to enhance international
            competitive power of China’s agriculture products. MOC will exert
            more effort in adjusting its agriculture structure, boosting modern
            agriculture construction and thus increasing farmer’s income for
            years.

Source:MOFCOM