Lingcheng speeds up development of agro-processing business

In line with China's rural vitalization initiative, farmers in Lingcheng district of Dezhou, East China's Shandong province, have ramped up efforts to develop the agro-processing industry by setting up a new wheat flour mill plant.

As a major investor in the project, COFCO Group, China's leading agricultural and food company, said construction is already halfway through and the plant will be officially put into operation early next year.

Zhang Zhibin, deputy project manager, said the plant will be equipped with four production lines. On completion, it will be able to process 900,000 metric tons of wheat and produce 650,000 tons of flour per year.

"The project can help meet the staple food needs of 7.5 million people," said Zhang.

A series of support facilities, including grain storage silos, a customer service center and a research and development center, will also be set up nearby.

Involving a total investment of nearly 1.4 billion yuan ($193 million) and covering an area of 240 mu (16 hectares), the project is expected to generate 2.2 billion yuan in annual sales, Zhang added.

Lingcheng possesses great advantages in developing an agro-processing industry as the district is endowed with more than a million mu of arable land, which ensures an abundant supply of raw grains.

Meanwhile, the district is located close to several major cities, such as Beijing and Tianjin, so farmers have little to worry about marketing their agricultural produce.

Against such a backdrop, the local government said it will not only strive to carry out more agro-processing projects, but also develop industries related to the procurement, storage, transportation and trade of agricultural products, thereby injecting fresh impetus into the district's economic growth.

Lingcheng's moves came as China released this year's No 1 Central Document in February, which stressed further efforts to promote the high-quality development of the agro-processing industry across the country.

According to the document, farmers need to carry out intelligent transformation of their processing equipment utilizing internet of things, artificial intelligence and big data technologies, as well as introduce more advanced production techniques, thereby improving both productivity and product quality.

The farmers should also make their production more environment friendly, with efforts to advance resource recycling and reduce pollution.

Besides, the document urged the local governments to provide more financial subsidies and tax incentives to spur technological research and development, and cultivate more professional talent in the sector.

Lyu Jianjun, a professor at the College of Economics and Management of China Agricultural University, said China's agro-processing industry has witnessed rapid growth in recent years and it has become a major driving force for the modernization of the country's agriculture.

Lyu said urban residents in China increasingly need processed foods that are convenient, nutritious and safe. As a result, there exists ample room for the industry to grow further.

The country should continue to extend the industrial chain and encourage companies to actively share resources with each other. Efforts should also be made to establish unified standards targeting the industry and foster a favorable business environment, Lyu added.