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Technology vital to agro development
2002-02-11
China Daily
The further development of Chinese agriculture calls for a substantial boost to agro-technologies, said an article in the China Economic Times.
Since agricultural production features diminishing returns on land and increasing cost of labour, its growth will remain slow in the absence of effective counter-measures. The momentum of growth in some countries is the combined result of progress in agro-technologies and large-scale intensive farming, the article said.
Agro-technologies have the potential to improve marginal returns with the same input of factors of production. Large-scale land management can decrease cost of transactions in production organization. It also helps reduce the proportion of fixed cost and labour cost in per unit product.
In developed countries, agro-technologies make impressive contributions to agriculture. About 80 to 85 per cent of research achievements are transferred into applicable technologies. In China, however, this figure remains as low as 30 per cent.
The government has a lot to do to upgrade agriculture, according to the article.
First, it says, the State should invest more in agronomy-related research and development. Rules of the World Trade Organization (WTO) prohibit direct governmental subsidies to agricultural production. Input into research and development does not go against WTO rules and can push forward the country's agricultural development by a big margin.
The government should spend more on basic research on bio-technologies. Meanwhile, financial support for the development of applied technologies should not be neglected.
Second, reform of research institutes specializing in agro-technologies needs fresh stimulus. There have to be effective mechanisms to translate research achievements into marketable technologies or products. Research institutes should lay off non-professional personnel and improve conditions for their backbone members.
Third, in line with rules of the market economy and features of agricultural production, more organizations devoted to spreading agro-technologies in the countryside should be set up.
During the period of planned economy, centres to popularize applied technologies were built at all levels. But since the break-up of people's communes and adoption of the household contract responsibility system, these centres have not adapted very well to the new situation.
There should be multiple approaches for the popularization of agro-technologies. Some companies can provide farmers with advanced technologies.
Grain growers can hire experts from research institutes to tackle thorny difficulties or advise them on production. Special consulting services should be encouraged. And farmers can also set up their own associations to educate themselves.
Fourth, education on agricultural science and technology should be improved further since human resources serve as a main powerhouse to promote agricultural production.
Fifth, achieving agricultural production of scale is also a prerequisite for spreading modern agro-technologies.
Since the popularization and application of science and technology often has high costs, if the scale is not large enough, the fixed cost of per-unit product will remain high. That will hinder the further spreading of science and technology.
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