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Chain stores on farm products encouraged
Updated: 2004-10-11 10:50

China will adopt a series of measures to support the development of chain businesses of agro-products and farming tools to bring the sector in the track of healthy development, Niu Dun, vice minister of agriculture, said in Beijing Sunday.

Niu said that this year, the ministry has selected 40 chain stores selling farm products and 80 selling farming tools, chemical fertilizers and other agricultural supplies.

At a symposium on chain business development, Niu said chain business is an advanced commercial pattern, which helps improve China's agriculture production and ensure the safety and quality of agricultural products.

Chain management is popular in advanced countries, said Niu, noting that foodstuff sales by chain stores account for 80 percent of the total consumption in some European countries, and over 95 percent in the United States.

In China, chain stores of farm products is still in an initial stage but has showed great potential for development. A batch of chain businesses in this regard have emerged in recent years and have been expanding rapidly.

The Nanjing Red Sun Ltd Company, which was founded in 2002, has set up a network covering over 380 villages and towns in five provinces so far. The company has set an ambitious target of becoming the No 1 network for farm tools distribution.

However, experts admit that there are still problems in the development of the sector, citing the lack of reliable brands, inefficient logistics system, and high threshold for market entrance.

To help solve the problems, the Ministry of Agriculture has issued two regulations last year, asking local agricultural departments to give more support to the companies in this sector.

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