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Farm logistics to get support
POSTED: 10:53 a.m. EDT, January 30,2007

The Chinese Ministry of Commerce has selected 100 large farm produce logistics firms to receive government support. This is part of the government¨s bid to build a national logistics network for farm produce.

The 100 companies were chosen by an expert panel from 179 companies recommended by local authorities. According to the ministry they were selected because of their large turnovers, modern operational methods and sound management.

The government will provide the companies with funds and loan subsidies for building cold chain systems, distribution centers and large wholesale markets. This will help cut the transaction and transport cost of farm produce. From this will come an increase in farmers¨ incomes and the possibility of job creation in the the countryside.

The 100 firms chosen sold RMB38.4 billion ($4.8 billion) worth of farm products in 2005.

From: China Daily
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