This document summarizes China's rural market reforms and policies to support small farmers' participation in large markets. It discusses the stages of rural market development from 1978 onward. It then describes several models small farmers use to connect to large markets, including through logistics companies, supermarkets, agricultural cooperatives, and partnerships with leading agricultural enterprises. Case studies illustrate each model's benefits in improving farmers' incomes and market access.

1. Market Development & Agriculture Laping Wu Professor, College of Economics and Management, China Agricultural University Email: wulp@cau.edu.cn China-IFAD South-South Cooperation Seminar on Comprehensive Agricultural Development and Poverty Reduction Nanning Guangxi, Nov. 4-6, 2010

2. Laping Wu College of Econ. & Management China Agricultural University TEL: 62738573(fax), 62738816 Email: [email_address] Http://www.cau.edu.cn/cem E-card

8. 2 、 Rural market reform

11. 2 、 Rural market reform

15. Product Circulation

16. Wholesale Trade (2009) Data source: Chinese Statistic Yearbook,2010 343994 5210 Wholesale of Textiles, Garments and Daily 651490 4281 Wholesale of Food, Beverages and Tobaccos 136946 1931 Wholesale of Farm Produce and Livestock Products 898077 30657 Private Enterprises 740837 12381 Limited Liability Corporations 77640 1101 Collective-owned Enterprises 690946 3922 State-owned Enterprises 2801147 50498 Domestic Funded Enterprises 3122535 52853 Wholesale Trade Engaged Persons Corporation Enterprises (unit) Item

19. Ag. Domestic Trade policies MKT players Products MKT structure Brokers/Traders Cooperatives Trade companies Standards Quality Processing Logistic & information MKT infrastructure Traceability

26. 4. Small scale and big market: how small farmers adapt to the big MKT

31. Population of several provinces Data source: China statistical yearbook, 2010 Rural share (%) Population(10000) Regions No 10 9 8 7 6 5 4 3 2 1 42.10 5180 Zhejiang 54.00 5720 Hubei 57.90 6131 Anhui 56.80 6406 Hunan 57.00 7034 Hebei 44.40 7725 Jiangsu 61.30 8185 Sichuan 51.68 9470 Shandong 62.30 9487 Henan 36.60 9638 Guangdong

32. Population of major countries Data source: world bank 2143 Australia 6141 United Kingdom 5983 Italy 8211 Germany 6228 France 3331 Canada Population(10000 persons) Country or Region

41. Self-logistics model: Wal-Mart supermarket suppliers Distribution center Super markets customers Distribution Information flow

42. suppliers distribution model: Carrefour Information flow Goods flows Branch of supermarket Headquarter of SuperMKT Suppliers Branch of supermarket Branch of supermarket

51. High priority to agri & rural development (7No. 1 documents) 2004: Boost growth in farmers’ incomes 2005: Improve overall production capacity 2006: Building a new socialist countryside 2007: Developing modern agriculture 2008: Strengthening foundation of ag. infrastructure 2009: Improve ag-development & farmer’s income 2010: Integrated development of rural & urban area

52. Thank You