The State Council on Dec 28 released a circular to further promote the development of the agricultural product processing industry.

Such efforts mainly involves industry structure, business modes, industry transformation and upgrades, and related policy support.

According to the circular, by 2020, China’s processing rate of agricultural products should reach 68 percent, and the ratio between output value of farm product processing industry and agricultural overall output value should be 2.4:1 – the ratio is one of the standards to measure modern agriculture, and developed nations are now mostly between 3:1 and 4:1. By 2025, the processing rate should be 75 percent, and the ratio will be further improved.

Furthermore, by then, key technology and equipment and innovation capabilities should also be strengthened to support agricultural modernization and improve farmers’ income, said the document.

Considering China’s agriculture features and development plan, raw material bases and agricultural product processing industry should have a reasonable and calculated distribution to improve processing efficiency and increase its value, said the circular.

It also called for speeding up the development of primary processing of such farm products as grain, fruits, vegetables, and fungus, and upgrading the level of intensive processing through related technology and equipment research.

Efforts should also be made to encourage the development of staple food processing and build related brands with good quality and high standards.

Farmers’ cooperatives are encouraged to join the processing industry development, and a unified business mode combining farm product drying, storage, processing and sales should be explored.

Farm products processing enterprises should be guided to expand their reach covering both raw material bases and sales and services networks in efforts to form a complete industry chain.

Networked, smart and refined processing modes should also be cultivated by making use of the internet. Industrial park construction is also stressed by the document.

Policy support mainly includes fiscal, tax, financing, investment, and preferential land and electricity measures, according to the circular.