Strengthening the Management System of Green Food Production Bases in China ZHANG Yongxia China Agricultural University, College of Economics & Management Zhangyongxia00@163.com Abstract This paper started with the profile of green food production bases in China, and summarized the current achievement of green food production bases, then analyzed the difficulties and issues in supervision, system, management agencies, etc.. In the end of paper, measures and suggestions that strengthen the management system of green food production bases were imposed. The government should play a key role in nationwide investigation, integrated support system, financial support and producer credit record system. Key words Green food production base, Management, Supervision, Support system. 1 Instruction Through reviewing domestic and foreign literatures about Chinese green food production bases, some researchers introduced the development status of green food production bases, and some researchers analyzed the issues on organization and management about green food production bases. These researches established a good base for my research, but still lacked a deep and intensive analysis in system, management and implementing. The author took a new analysis method from governmental support syste 2 The profile of green food production bases in China 2.1 The definition of green food According to China Green Food Development Center (CGFDC), Green Food stands edible produce and processed products produced in sustainable environment and technical standards with whole-some quality control, non-pollution, safety, quality and special logo. In China, safety food are classified into three kinds, which are Pollution-free Agricultural Product, Green Agricultural Product and Organic Agricultural Product from low to high in safety degree. Organic Agricultural Products are also Green Agricultural Products but Organic Agricultural Products are higher than Green Agricultural Products in safety degree. [1] 2.2 Basic statistics of green food production bases There have been 151 standardized production bases of green food in 14 provinces of China by the end of 2006, which mainly distribute in the main regions of advanced agricultural products and standardized demonstration area, including Heilongjiang, Inner Mongolia, Shandong, Liaoning, Jilin, Anhui, Hubei, Ningxia, etc.. In addition, there are still 83 green production bases newly applied by 63 counties that have entered into one year establishment term. There are 31 types of green raw materials, which include grains, oil crops, vegetables, fruits, tea, seafood, etc.. The total area of green food production base is 2.7 million hm2. The yearly production of green raw materials has arrived at 18.8 million ton.[1] [3] 2.3 The management mechanism of green food production base In sep, 2007, China Green Food Development Center enacted “national standardized green raw material production bases supervision and management methods” which regulated that the Green Food Management Office of Ministry of Agriculture (MOA) and China Green Food Development Center (CGFDC) are responsible for organizing and implementing management of production bases of green 613 raw materials. CGFDC is supervised by MOA and is a specialized agency responsible for national development and management of Green Food. CGFDC has 42 provincial and municipal branch agencies, and has 38 quality inspection stations and 71 environmental monitoring branches. CGFDC has regulated “the regulations on management of green food production bases” and “detailed rules on management of green materials production bases” based on which many provinces enacted enforcement rules. The regulations and enforcement rules become the instruction of management for green food production bases in most green food produced regions. , 3 The achievement in green food production bases 3.1The authorized special agency has been established In China, there had no special agency responsible for managing green food before 1992. At that time, the few organic food producers in China depended on international certification agencies and organic food production bases were managed by firms which engaged in organic production. In 1992 China Green Food Development Center (CGFDC) founded. But until sep, 2007, CGFDC isn’t authorized by law to be responsible for managing green food production bases. Now CGFDC play a key role in managing green food production bases as an authorized agency. CGFDC is responsible for Generation of policy, regulation, strategic plan, and responsible for Creation and implementation of standard Quality control of Green Food production. In addition, CGFDC Organizes various activities related to Green Food production, such as research, demonstration, technical extension, training, education and international exchange and cooperation etc. As an authorized special agency, CGFDC pushed the nationwide enlargement of green food production bases. [8] 3.2 The large scale standard green production bases have been establishing In 2005 the program of the large scale standard green production bases was initiated . Through three years striving, nowadays, large scale standard green production bases have been founded in some extend In recent years, many regions have taken action to establish large scale green food production bases, for example, Heilongjiang province requires province-level production base must attain to a certain scale. The province requires that the scale of grains and beans production base is at least 2666 hm2, the scale of greenhouse vegetable is at least 6.7 hm2, the scale of land vegetable is at least 6.7 hm2, the scale of hen eggs is at least 200 thousand hens, the scale of duck eggs is at least 50 thousand ducks and the scale of cows and beefs is at least 10 thousand heads, etc.. In 2007, Xinjiang Uygur Autonomous Region established 5 green production bases, which scale are all more than 6.7 thousand hm2. There are still some other provinces such as Jilin, Liaoning, Jiangxi which have also set up large scale standard green production bases.[1] 。 , 3.3 The standards and regulations on green food production bases are going perfect The regulations and details rules enacted by CGFDC provide general rules in establishing production bases. The provinces and counties enacted more detailed enforcement rules according to local status. These regulations and rules provide very concrete standards, technical operating instructions during establishing and management of production bases. According to these regulations and rules, some regions set up a series of management systems about production management, input requirement, technical instruction and extend, producers’ education, environment protection, supervision and control, and normative and complete producers’ records about goods input. These systems could guarantee production bases can supply qualified materials for companies and consumers in certain extent. The uniform nationwide standard of production bases promote the whole green food industry develop and get strengthened. 3.4 The government strengthened support for foundation of green food production bases In recent years both state and province government increased financial support for green food production bases, and regulated many support policy to promote production bases’ development, 614 including financial privilege, tax privilege, free-charge of test and certification, etc.. From 2000, Heilongjiang input 55 million yuan RMB into foundation of green food production bases every year. The emphases of support are large scale, high standard and well profitable green food production bases. Jilin had input 50 million yuan RMB into establishing green food production bases, and also absorbed investment 300 million yuan RMB from companies and social resource. In jiangxi province, local government which planned to set up green food production bases arranged more than 200 thousand yuan RMB as implementing funds. 4 The difficulties and issues of green food production bases 4.1 It’s very difficult to supervise production practices Even though the scale of every production base is very large, but the large scale production base is made up of hundreds of connected small pieces of farm land and managed by many small farm households. So it is very difficult to standardize and monitor production practices in a sector composed of millions of farm households who typically have less than 10 acres of land divided into several noncontiguous plots. Some farmers have little knowledge about correct chemical use; for example, they may fail to wait the prescribed number of days between the last application of a pesticide and harvest, resulting in excessive residues in the harvested product. In addition, Farmers have only usage rights to their land, so they lack ownership incentives to make costly investments in some degree. 4.2 Successful Industries Achieve Safety Standards, but at a Cost Now, firms have used two business models to impose more control over production practice: the first is a fully vertically integrated model in which the company leases land and controls production directly; the second is the use of production contracts with growers that specify chemical use and production methods. But because the second method is high cost, most firms use the second method. In Heilongjiang , the companies signed 520 thousand contracts with peasants in 2001. The sale amount of green food by signing contract was 3.84 million tons, accounting for 85 percent of total production. But in cases of signing contracts with growers, because production bases are managed by many different small farm households, some peasants don’t abide by the production regulation, it’s difficult to guarantee that the produced goods are qualified. The leasing model ensures greater control over production than the contract model, but it also costs more and is limited by access to land. Developing a production model that balances low costs against the risk of a safety problem is challenging. 4.3 The system of support policies and management agencies is still inadequate A system of standards and certification has been set up, but these standards and codes are still far away from international authorized standards so that the logo of China’s green food is not recognized in foreign markets, which displays that the techniques relative to green food’s test and certification are still laggard. The producers of green food material are almost peasants, whose level of knowledge is very low and need some necessary technical training. Most of the green food material producers can only sell the products by contract with firms, or it’s very difficult to find market to sell their products at a higher price than normal products. There still have not a well-developed market network to provide service for producers. Some small producers disobey the regulations and don’t organize production according to contract or standard technical specification, but there is not a suitable way to punish them. [4] 5 The measures and suggestions on Strengthening the management system ofgreen food production bases 1 Organize nationwide investigation on green food material producers and firms every two years In China, green food material producers and firms are main bodies in developing of green food Industry. So if government officers can know their difficulties and demands termly and resolve problems for them in time, green food material production development will be promoted and form a sustainable and stable cycle. The content of investigation should concentrate on these aspects: farm profile ,green 615 food material production and production details, market channels, timing of price determination, market trend, trends in average prices, percentage of green product sold into the conventional market, assessment of marketing information resources, the effect of government policy. [2] [6] 2. Establish an integrated support system for green food material production bases In China, Green agriculture delivers environmental and social benefits to society, and green food Industry should be regarded as an infant industry requiring support until it is able to compete in established markets, but firstly green food material production bases should be supported. The integrated support system should include government standards and certification, conversion and support payments for green food material producers, targets for land under green management, and policies supporting research, education, and marketing. [7] 3. Chinese governments should increase financial support and help absorb social investment to set up sustainable green food material bases Chinese governments should support green agriculture through green payments for converting to and continuing green farming. The government payments should partly compensate new or transitioning green food material producers for any increase in costs or decline in yields in moving from conventional to organic production. Chinese governments should spend vast fund to research new techniques to further improve quality of green food and the level of certification and test in order to make domestic standards more closer to international standards, and hold green food production training for a great many of producers to make them know necessary knowledge in production practice. [3] [5] 4. Establish producer credit record system Because the producers of green food materials sell their products by contract with firms, and average household production scale is very small, so compared with the firms, the risk that producers have to face is less when the green food material they produced are testified unqualified, they can sell their products to other buyers. In some cases, because one producer don’t practice according to the regulated standard, for example, he used a kind of forbidden pesticide, his performance could influence other farmlands around his own, then make other producers and firms lose much. So It’s very necessary to establish a record system of producer credit. If a producer has a bad credit record, he will be punished by canceling his rights in enjoying some kinds of preferential polices such as financial privilege, tax privilege, etc.. If a producer has a good credit record in several continuous years, he can enjoy more preferential polices. By this way, the number of producers who violate a contract could decrease. 6 Conclusion There are a growing number and variety of green food production bases in China. Through the striving of government, green food produced firms and farm producers, the achievement of green food production bases is great, but there are still some issues and difficulties in the process of green food bases establishing and enlarging. In order to overcome these problems, the government should arrange a series of system including investigation, integrated support system, financial policies and producer credit record system. 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