China Co-operation Times:

The No.1 Central Document stresses the regulation of farmers' cooperatives and puts forward the establishment of a system to improve and support the development of farmers' cooperatives. Progress on developing cooperation among production, supply and marketing and credit cooperatives has been achieved in Zhejiang province. So, what's the next step in promoting such cooperation? And what kind of policies will be taken to support the development and regulation of farmers' cooperatives? Thanks.

Wu Hongyao:

To foster new types of agribusiness, we place importance on two aspects: farmers' cooperatives and family farms. The No.1 Central Document covers both, with stepped-up efforts to develop family farms, while regulating the development of farmers' cooperatives.

Farmers' cooperatives have achieved great progress and played a vital role in the economy. However, problems are emerging at the same time. According to the No.1 Central Document, farmers' cooperatives will pursue further development, while seeking to improve their regulation, so as to address such issues as "zombie cooperatives."

The supply and marketing cooperatives in Zhejiang province you mentioned form an important part in the farmers' cooperative movement, and development of the cooperative economy, which is highly valued by the CPC Central Committee and the State Council. The central leadership has released opinions on deepening reform on supply and marketing cooperatives, now being implemented across the country. The complex cooperatives (including production cooperatives, supply and marketing cooperatives, as well as credit cooperatives) in Zhejiang province started quite early and have made positive progress. The complex cooperatives can be seen as a new direction nationwide. Exploration on how to develop them further is underway in different places. Besides the cooperatives in Zhejiang province, Shandong province is placing farmland under trusteeship, which is also an effective way forward.

To develop supply and marketing cooperatives, first, we need to focus on strengthening primary branches and guide them to focus on their original functions, inviting more individual farmers to participate. Second, we need to expand the business scope. The credit cooperatives can also be developed to promote cooperation on distribution and processing of agricultural products.

In a word, the development of cooperatives needs both support and regulation in order to give full play to their role in future. Thanks.

Han Changfu:

I agree with what Mr. Wu Hongyao has said in regard to your question. However, there is still one further point I would like to share with you. We have an important policy orientation to support and direct the development of farmers' cooperatives during the reform and revitalization of our countryside. We are a country where smallholder farming is in the majority, and if we want to have a market-based agriculture, we need to group smallholders together for them to venture in the market. Besides, modern agriculture needs to achieve economies of scale and this also makes it necessary for farmers to stick together and be well organized to achieve common prosperity. Therefore, our work in 2019 will also focus on the farmers' cooperatives in various forms, ensuring their sustainable development. Thank you.

Hu Kaihong:

That's all for today's press conference. Thank you, Mr. Han and Mr. Wu and thanks to everyone here today.

By Li Xiaohua, Zhang Liying, Li Shen, Li Jingrong, Wu Jin, Zhang Rui, Cui Can, Zhang Jiaqi, Huang Shan, Yuan Fang, Li Huiru, Li Yang, Wang Qian, Guo Xiaohong, He Shan, Wang Wei, Zhou Jing, Jennifer Fossenbell, Geoffrey Murray

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