Research Reports
A Study on Structural Change and Production Integration of Japonica Rice Industry in Northeast China
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AuthorJeon, Hyoungjin
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Publication Date2009.12.01
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Original
Korea is slated to introduce tariffication on imported rice in 2014. As this is the case, the price-competitive short- and medium-grain rice of Northeast China has become a potential risk factor.
In this study, we examine the recent structural transition and production integration of the Japonica rice industry in Northeast China and present policy implication for the Korean rice market.
Northeast China is China's largest base for the production and export of short- and medium-grain Japonica rice. Since the commercialization rate of Japonica rice in Northeast China is extremely high, it is sold to consumers in southern regions of China or exported to Korea, Japan and others. The demand for the highly income-elastic Japonica rice is on a rise due to the rise of income of Chinese consumers, and the production concentration of Japonica rice in Northeast China is getting intense owing to high profitability. Also, Northeast China is showing strength in the production of high-quality rice by utilizing its natural environment favorable to environment-friendly agriculture.
China is aggressively pushing ahead with an agricultural industrialization policy that focuses on production integration to overcome the shortcomings of poor small farms and raise the quality of rice and their income at the same time.
Northeast China is determined to push ahead with the industrialization policy by focusing on improvement of quality and competitiveness through production integration centering around the ‘enterprises+production base+farm household' model or the ‘enterprises+farm household' model.
The policy implications we could draw from analyzing the structural shift and production integration of Northeast China's rice industry are as follows:
First, Northeast China's rice industry is exerting a growing influence on the Korean market. In order to make a timely forecast and cope with this, it is necessary to build a monitoring system that can collect and analyze various related data.
Second, it is necessary to push ahead with a plan to achieve production integration by promoting and supporting various entities involved in the industry-reshaping process. In Korea where food is gaining more importance with respect to government policy, it is necessary to consider the Chinese model of production integration led by agrifood enterprises.
Third, it is necessary to set up a rice supply plan and prepare appropriate measures to manage imported rice under the premise that part of the domestic need for rice will be covered by imported rice over the mid-to-long term. In addition, measures to ensure the safety of imported rice should be prepared.
Fourth, Northeast China is actively pushing ahead with a plan to integrate the production of eco-friendly, high-quality rice by utilizing the production conditions suitable for eco-friendly agriculture. Therefore, it is important to increase the capacity to cope with the challenges of Northeast China's rice by expanding the project to integrate the production of high-quality rice by rice processing centers (RPCs).
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